Pushtiseva Foundation Vs CIT (ITAT Bengaluru)
Summary: The ITAT Bengaluru considered the assessee’s appeal for A.Y. 2024-25 against the order dated 06/03/2026 of the Addl./JCIT(A)-3, Bengaluru. The assessee, a charitable institution originally registered under section 12AA and approved under section 80G, was required to obtain registration under section 12AB under the amended registration regime. According to the assessee, it inadvertently filed Form No. 10AB on 28/06/2024 instead of Form No. 10A, resulting in rejection of its application by the CIT(E) on 23/12/2024. A Coordinate Bench had subsequently, by order dated 04/08/2025 in ITA No. 1227/Mum/2025, set aside that rejection and restored the registration proceedings to the CIT(E), permitting a fresh application in Form No. 10A. The CIT(E) thereafter granted registration under section 10(23C) on 17/04/2026. Meanwhile, CPC, Bengaluru, by intimation under section 143(1) dated 23/12/2025, denied exemption under section 11 and computed income at Rs.2,10,87,780/-.
The CIT(A) treated the assessee’s appeal concerning denial of section 11 exemption as infructuous because the registration issue under section 12AB had been restored to the CIT(E). The Tribunal held that this approach was incorrect. Proceedings concerning registration under section 12AB and an appeal arising from an intimation under section 143(1) operate under separate statutory jurisdictions. Although the ultimate decision concerning registration would materially affect the assessee’s entitlement to exemption under section 11, pendency of the registration proceedings could not extinguish the statutory appeal against the section 143(1) intimation. The CIT(A) was required to adjudicate that appeal with reference to the relevant legal and factual position.
