Case Law Details
Arya Samaj Safdarjung Enclave Vs CIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi, in the case of Arya Samaj Safdarjung Enclave Vs CIT, has provided a significant verdict. The tribunal, recognizing the inadvertent error of wrong form selection during an application for 12A(1)(ac) registration, allowed for a re-application in its ruling dated 13/06/2023.
This verdict stands out as the ITAT has shown flexibility by allowing the assessee to rectify an inadvertent mistake. The assessee had initially chosen the wrong form (Form 10AB) while applying for registration under section 12A(1)(ac) of the Income Tax Act, which led to rejection by CIT(E). The ITAT, on understanding the bonafide mistake, granted permission for the submission of the correct form (Form 10A) within a stipulated time of 30 days.
This ruling emphasizes the focus on the intention behind the submission and the genuineness of the organization’s activities rather than penalizing for a procedural error. This not only helps the organization involved in this particular case but also sets a precedent for similar cases in the future.
This significant ruling by ITAT Delhi brings about a more understanding and accommodating approach in dealing with unintentional mistakes in tax registration applications. It proves that the focus lies on the transparency and sincerity of the applicant organization rather than on an unintentional procedural error. As a result, this decision might influence similar future cases by providing a degree of flexibility and tolerance in tax registration procedures.
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