TaxTMI 
TaxTMI 
2026 (1) TMI 1630
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....A/EXM/F/EXM45/2025-26/1080623885(1) respectively, both dated 11.09.2025 and passed by learned Commissioner of Income-Tax (Exemption), Bhopal ["CIT(E)"] by which the assessee's applications for grant of final registration u/s 12AB & final approval u/s 80G of Income-tax Act, 1961 ["the act"] have been rejected. The assessee has raised the grounds as mentioned in respective Appeal Memos (Form No. 36). 2. Since these appeals relate to the same assessee and are interconnected, they were heard together and are being decided by this common order. We would first take up appeal relating to registration u/s 12AB and thereafter appeal relating to approval u/s 80G. ITA No. 887/Ind/2025 - relating to registration u/s 12AB: 3. At first, we re-pr....
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....nder section 12A(1)(ac) (vi) (B) of the Act. Considering the facts of the case and reasons mentioned above, a show cause notice was issued to the assessee on 28.08.2025 stating that why the application in Form 10AB for registration/approval u/s 12A(1)(ac)(vi) - ITEM(B) of the Act should not be rejected on technical ground. In compliance, the assessee neither submitted any written reply nor requested for the adjournment. In view of the above mentioned facts and circumstances of the case, the application filed in Form 10AB for the approval u/s 12AB of the Income Tax Act is hereby rejected." 4. Ld. AR for assessee instantly agrees to the observation made by Ld. CIT(E) that an incorrect/inapplicable clause 12A(1)(ac)(vi)(B)....
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.... regime for grant of registration u/s 12A by insertion of section 12A(1)(ac) through the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 ["TOLA"], with effect from 01.04.2021. Under this regime, different kinds of registrations such as provisional registration, regular or final registration, re-registration and renewal of registration have been prescribed for different factual situations, each governed by distinct clauses of section 12A(1)(ac). Owing to the introduction of this entirely new electronic system and multiplicity of clauses catering to different situations, instances of inadvertent or incorrect selection of clauses have occurred across the country. In this regard, we observe that in the underme....
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....ected the wrong section code inadvertently while filing the application for final registration in Form 10AB. Further, we notice that the assessee did not have the opportunity of being heard before CIT(E) due to incorrect course of action advised, and that otherwise the assessee might have explained the facts before the CIT(E) to avoid rejection. In view of these discussions and respectfully following the above decision of the Kolkata Bench in the case of North Eastern Social Research Centre (supra), we remit the issue back to CIT(E) with a direction to grant final approval to the assessee under Clause (iii) to First Proviso to section 80G(5) of the Act, if the assessee is otherwise found eligible. We also direct the CIT(E) to decide the app....
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....rovisional approval under clause (iv) i.e., 28/06/2022, due to technical errors occurred in making the application under the relevant provisions of the Act because of the confusion and misunderstanding on part of the assessee as well as on part of the ld. CIT(Exemption) in properly interpreting the relevant provisions. 7. With the above observations, the appeal of the assessee is treated as allowed for statistical purposes." 7. Respectfully following the same tune and approach as adopted by ITAT Benches, we are inclined to remand the present matter to the file of CIT(E) for adjudication afresh after hearing assessee. We direct the Ld. CIT(E) to grant final registration to assessee under correct/applicable clause of section 12A(1....