Case Law Details
Santiniketan Sishutirtha Vs CIT (Exemptions) (ITAT Kolkata)
Introduction: The Kolkata Income Tax Appellate Tribunal (ITAT) recently adjudicated on the registration applications under section 12A(1)(ac)(i) filed by various assesses, notably Santiniketan Sishutirtha, challenging the orders of the Commissioner of Income Tax (Exemptions). The crux of the matter lay in the correct interpretation of Form No. 10AB and its implications.
Detailed Analysis: The core contention revolved around the application’s misrepresentation of the relevant clause. The applicants erroneously cited clause (iii) of sub-section (1) of section 12A instead of sub-clause (i) of section 12A(1)(ac). This discrepancy led to the rejection of their registration requests, despite having been provisionally registered.
Upon scrutinizing the matter, the Kolkata ITAT recognized the procedural error and empathized with the assesses’ predicament. It acknowledged that the applications should have been filed under section 12A(1)(ac)(i) for regular registration, rather than under a provision meant for provisional registration renewal.
Consequently, the ITAT directed the Commissioner of Income Tax (Exemptions) to reconsider the applications in light of the correct provision, emphasizing the applicants’ entitlement to a fair evaluation for fixed-term registration.
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