Della Foundation Vs CIT (Exemptions) (ITAT Mumbai)
The assessee filed two appeals before the Income Tax Appellate Tribunal (ITAT), Mumbai, challenging orders dated 21.11.2024 passed by the Commissioner of Income Tax (Exemptions) [CIT(E)].
In ITA No. 413/Mum/2025, the assessee challenged the rejection of its application in Form No. 10AB seeking registration under Section 12AB of the Income Tax Act, 1961. The assessee had previously been granted provisional registration under Section 12AB in Form 10AC, valid from Assessment Year 2022-23 to Assessment Year 2024-25. It subsequently applied in Form 10AB for renewal of registration.
The CIT(E) rejected the application on the ground that the assessee had filed it under Section 12A(1)(ac)(ii), which applies to trusts already holding regular registration and seeking its renewal. Since the assessee held only provisional registration, the CIT(E) held that the applicable provision was Section 12A(1)(ac)(iii) and rejected the application as having been filed under the wrong provision.
Before the Tribunal, the assessee submitted that it had intended to apply for renewal of its provisional registration and that the reference to Section 12A(1)(ac)(ii) was an inadvertent error. It contended that it had not been informed of the defect in the application and that the rejection order had been passed without giving it an opportunity to explain or rectify the mistake. The assessee further submitted that the documents and details accompanying the application demonstrated that it was intended to be an application under Section 12A(1)(ac)(iii).
