Case Law Details
St. Thomas Syro Malabar Catholic Church Vs CIT (Exemption) (ITAT Kolkata)
Final Registration u/s 12A Directed – Inadvertent Form 10AB Filing Cannot Defeat Trust’s Exemption Rights
The Kolkata ITAT allowed the assessee-trust’s appeal and set aside the order of the CIT(Exemption) rejecting final registration under Section 12A(1)(ac)(vi)(B). The Tribunal noted that the assessee was already registered under Section 12AA and had been granted provisional registration in Form 10AC from AY 2021-22 to AY 2023-24. It held that the trust was legally entitled to registration for a continuous period of five years (AY 2021-22 to AY 2025-26) under the amended regime, and the grant of only three-year provisional registration was itself contrary to law.
The Tribunal further held that the filing of Form 10AB for an incorrect assessment year was a purely inadvertent clerical error which could not be used to deny registration when genuineness of objects and activities was never doubted. Relying on its own earlier decision in the assessee’s case and on co-ordinate bench rulings, the Tribunal quashed the erroneous Form 10AB and the consequential rejection order in Form 10AD, and directed the CIT(E) to grant registration for AY 2021-22 to AY 2025-26. The appeal was accordingly allowed in full
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the assessee against the order of the Commissioner of Income Tax (Exemption), Kolkata (hereinafter referred to as the “Ld. CIT(E)”] dated 23.12.2025 for the AY 2023-24.
2. The assessee has raised following grounds of appeal:-
“1. That, the Ld. CIT(Exemption) has erred on facts and in law in having rejected the appliction in Form No.10AB e-filed on 29/11/2024 for 1. registration u/s 12A(1)(ac)(vi)(B) of the Act in spite of the fact that all the queries/ clarifications raised in the notices were replied with supporting documentary evidences and other requirements as per law and moreover the appellant-trust being a bonafide applicant is entitled to get the final registration as applied for.
2. That, the L.d. CIT(Exemption) while rejecting the application in Form-10AB for approval of registration u/s 12A(1)(ac) (vi) (B) of the Act for A.Y. 2025-26 erred in having alleged for providing incorrect information contradictory to the facts of the case because the assessee has been filing ITR-7 claiming exemption u/s 11 of the Act in the previous AYs 2021-22 to 2023-24 without properly appreciating that the appellant-trust was holding exemption certificate u/s 12AA and provisional registration u/s 12A uptil A.Y. 2023-24 and as per settled law there was no error in claiming exemption u/s 11 & 12 of the Act when the trust was armed with provisional registration
3. That, without any prejudice to the above, refusal to grant registration u/s 12A(1)(ac)(vi)(B) of the Act by the Ld. CIT(Exemption) is unjust and beyond the natural justice to the appellant when he has not raised any objection over the genuineness of objects and activities or non-compliance of any law and hence the application for final registration under bona fide reason cannot be held to be fatal to militate against the well-deserved beneficial provision to be extended to the genuine trust like the appellant engaged in providing relief to the poor, education, medical relief etc.
4. That, therefore, as the order of the Ld. CIT(E) dated 27.06.2025 rejecting the application filed in Form-10AB for approval u/s 12A(1)(ac)(vi)(B) of 4. the Act for A.Y. 2025-26 was unjust and bad in law, he be directed to grant approval for A.Y. 2025-26 after considering the documents/evidences already filed.”
3. Brief facts of the case are that the assessee is a Charitable Institution formed to carry out charitable objects as defined in section 2(15) of the Income Tax Act, 1961. The assessee was registered u/s 12AA of the Act from the A.Y. 2020-21 on 03.10.2019 vide Registration No. CIT(Exemption), Kolkata/12AA/2019-20/A/10447 as per copy enclosed (Page No. 1 to 2). The assessee filed an application in Form 10A for provisional registration on 23.03.2021. The application of the assessee was treated by the department as an application u/s 12A(1)(ac)(vi) and thus assessee was allowed provisional registration u/s 12A of the Act in Form 10AC on 27-05-2021 from AY 2021-22 to AY 2023-24. The assessee Trust applied for registration u/s 12A of the Act for AY 2025-26 on 29.11.2024 in Form 10AB. Accordingly, proceedings u/s 12A of the Act was initiated by the Learned CIT (Exemption), Kolkata and various notices were issued which were duly replied. In reply to the query of the CIT(E) as to whether exemption u/s 11 of the Act was claimed in the ITR for the A.Υ. 2021-22, 202223, 2023-24 and 2024-25 the assessee submitted that exemption has been claimed for the A.Y 2021-22, 2022-23 and 2023-24 which was not accepted. Further the undertaking furnished by the assessee was found to be incorrect by the CIT (E). Under the circumstances the application filed by the assessee in Form 10AB was rejected by Ld. CIT (E) vide order in Form 10AD dated 27.06.2025, copy of which is enclosed at Page No. 20 to 24 of the Paper Book. The assessee’s trust being aggrieved and dissatisfied with the above order of Ld. CI.T.(Exemption) has filed the instant appeals before us.
4. After hearing the rival contentions and perusing the materials available on record, we find that the appeal of the assessee is squarely covered by the decision of this co-ordinate Bench in assessee’s own case in ITA No.1567/Kol/2025 vide order dated 23.12.2025, the operative part of the same is read as under:-
“3. At the time of hearing, the counsel of the assessee raised additional ground which is extracted as under:-
“That on the facts and circumstances of the case, the assessee trust inadvertently filled From 10AB for A.Y. 2023-24 on 05.03.2023 instead of A.Y. 2024-25 for registration u/s 12A of the Act although the assessee trust was duly accorded provisional registration till A.Y. 2023-24 vide order dated 27.05.2021 and thus was no required to file Form 10AB for A.Y. 2023-24, accordingly the said Form 10AB filed by the assessee may kindly be treated as withdrawn and consequent order in Form 10AD passed by the learned CIT (E), Kolkata may kindly quashed.”
3.1. After hearing the rival contentions and perusing the material on record, we find that the assessee has raised an additional ground of appeal and requested that Form 10AB filed by the assessee may kindly be treated as withdrawn and consequent order in Form 10AD passed by the learned CIT (E) may be quashed. In our opinion the issued raised in the additional ground is a purely a legal issue qua which all the facts are available in the appeal folder and no further verification of facts are required from any quarter whatsoever. In our considered view the assessee is at liberty to raise any legal issue before any appellate authority for the first time even when the same has not been raised before the lower authorities. The case of the assessee is squarely covered by the decisions of the Apex court in the case of i) Jute Corporation of India Ltd. Vs CIT in 187 ITR 688 , ii) National Thermal Power Co. Ltd v. CIT [1998] 229 ITR 383 and also by the decision of Hon’ble Calcutta High Court in PCIT vs. Britannia Industries Ltd. [2017] 396 ITR 677 (Cal). Therefore, we are inclined to admit the same for adjudication.
4. After hearing the rival contentions and perusing the materials available on record, we find that the assessee was registered u/s 12AA of the Act from A.Y. 2020-21 on 03.10.2019. The assessee filed an application in form no.10A for provisional registration on 23.03.2021. The said application of the assessee was treated by the Department as application u/s 12A(1)(ac)(vi) of the Act and thereby allowed provisional registration u/s 12A of the Act in form 10AC on 27.05.2021 from A.Y. 2021-22 to A.Y. 2023-24. The assessee filed form 10AB for A.Y. 2024-25 onwards for registration u/s 12A of the Act, since, it was already registered u/s 12A of the Act till A.Y. 2023-24. Inadvertently the assessee again filed registration application u/s 12A of the Act for A.Y. 2023-24 on 05.03.2023. The said application was inadvertent mistake at the time of choosing the assessment year while filing the form no.10AB on 05.03.2023. Accordingly, proceedings u/s 12A of the Act was initiated by CIT (E), Kolkata and notices were issued through ITBA portal. The notices were not replied by the Chartered Accountant of the assessee and the ld. CIT(E) vide order in form 10AD dated 11.09.2023 rejected in limine application u/s 12A of the Act for A.Y. 2023-24. Now the assessee has raised two issues before us as under:-
““(a) Firstly, the assessee trust was already registered u/s 12AA before its amendment by Taxation and Other Laws Act 2020, therefore the assessee was required to make application in Form 10A under section 12A(1)(ac)(vi) within three months from 01.04.2021 and was eligible for registration for a period of 5 Years i.e. from A.Y. 2021-22 to 2025-26. However, the application of the assessee was treated by the department as an application u/s12A(1)(ac) (vi) and the assessee was allowed provisional registration u/s 12A of the Act in Form 10AC on 27-05-2021 from AY 2021-22 to AY 2023-24 which was not as per law.
(b) Secondly the Ld. CIT(E) erred in rejecting the application filed in Form No 10AB on 05.03.2023 in limie without verifying the records that the assessee was already allowed registration for the assessment year 2023-24, therefore the assessee application in Form 10AB filed on 05.03.2023 for AY 2023-24 and its consequent order in Form 10AD dated 11.09.2023by the Ld. CIT(E) be quashed.”
4.1. So far as the first issue is concerned, we observe that the assessee is already registered before amendment by Taxation and Other Laws Act 2020 and so the assessee was eligible for registration u/s 12AB(1)(ac)vi) of the Act for a period of five years from A.Y. 2021-22 to 2025-26 as against the registration allowed for three years by ld. CIT from A.Y. 2021-22 to 2023-24. Therefore, we direct the ld. CIT (E) to allow the registration from A.Y. 2021-22 to 2025-26. Consequently, the first issue raised in additional grounds is allowed.
4.2. So far as the second issue in additional ground is concerned, we note that the assessee inadvertently filed the form 10AB of the Act for A.Y. 2023-24 on 05.03.2023, instead of 2024-25 for registration of 12A of the Act. Although, it was not required to do so as it was duly accorded provisional registration till A.Y. 2023-24 vide order dated 27.05.2021. The assessee has prayed before us that the said form 10AB filed by the assessee dated 05.03.2023, may be allowed to be withdrawn and quash the consequent order in form 10AD passed by CIT (E) on 11.09.2023. We note that due to this mistake of the assessee in choosing the assessment year in drop down menu while filing the form no.10AB of the Act on 05.03.2023, the assessee is debarred from claiming exemption u/s 12A of the Act for A.Y. 2023-24, which the assessee otherwise eligible to claim by virtue of form 10AC of the Act dated 27.05.2021, which accorded provisional registration from A.Y. 2021-22 to 2023-24.
4.3. Considering these facts and circumstances of the case and the sprayers of the assessee, we quash the from 10AB of the Act filed on 05.03.2023, for A.Y. 2023-24 and consequent order passed in form 10AD of the Act dated 11.09.2023. The case of the assessee find support from the decision of the co-ordinate Bench in case of Sawansukha foundation Vs. CIT in ITA Nos. 2154 & 2155/KOL/2024 for A.Y. 2024-25 vide order dated 08.01.2025, in which according to the Bench held as under:-
“4. We have perused the impugned orders and heard the rival submissions at length. In this matter, the facts are clear in as much as the assessee has a valid registration for AY 2024-25 in both the cases. It is also clear that inadvertently a fresh application filed for the year 2024-25 got rejected in an ex-parte manner. Since, there is a valid registration available with the assessee for AY 2024-25, in both the cases, the action of Ld. CIT(E) cannot be sustained in principle. However, while giving the effect to this appellate order, the Ld. CIT(E) is directed to verify the existence of valid registrations in both the cases for AY 2024-25 and thereafter, allow the registration to continue for AY 2024-25 as per the original order granting such registration.”
4.4. Accordingly, we allow the second issue in the additional grounds.”
4.1. Respectfully, following the decision of the coordinate bench in the assessee’s own case as extracted above ,we allow the appeal of the assessee by setting aside the order of CIT(E).
5. In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 13.01.2026.
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