Gospel India Ministries Gutkula Vs CIT (ITAT Nagpur)
ITAT Nagpur held that rejection of application in Form 10AB for grant of registration u/s. 12AB of the Income Tax Act on the ground of quoting of wrong provision not justifiable since quoting wrong provision cannot be held to be fatal to militate against well-deserved beneficial provision. Accordingly, directed to grant registration.
Facts- The appeal by the assessee is emanating from the impugned order dated 13/03/2025, passed by the learned Commissioner of Income Tax (Exemption), Pune. It is contested that Commissioner of Income tax (Exemption) was not justified in rejecting the application in Form 10AB for grant of registration u/s 12AB of the Act without properly appreciating the facts of the case.
On the other hand, Departmental Representative strenuously pointed out that application was made erroneously under a non– applicable provision which is an incurable defect. Hence denial of registration is justified.
Conclusion- Held that it is crystal clear that nowhere the genuineness of objects, activities or non– compliance of any law, material to objects achievement of objects has been painted out by the learned CIT(E). The grounds for rejection are ring fenced and the learned CIT(E) does not have any authority to over step the same. There is no error in claiming exemption under section 11 and 12 of the Act when the trust was armed with provisional registration. Moreover, taxability or otherwise of the income of the assessee would have to be separately considered as per provision of the Act. Quoting a wrong provision if at all so, cannot be held to be fatal to militate against the well–deserved beneficial provision to be extended. Thus, the assessee is entitled to final registration. Accordingly, we set aside the impugned order passed by the learned CIT(E) and direct the authorities below to grant registration keeping in mind the aforesaid findings. In the result, appeal by the assessee is allowed.
