INCOME TAX APPELLATE TRIBUNAL AGRA BENCH “DB”: AGRA SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER (Through virtual hearing)

ITA No. 410/AGR/2024 (Assessment Year: 2024-25)

Shiva Shiksha Samiti, Vs. CIT(Exemption), Avas Vikas Colony, Sector-7, Agra Sikandra, Agra (Appellant) (Respondent)

PAN: AAABS0763L Assessee by : Shri Deependra Mohan, CA Revenue by: Shri Sukesh Kumar Jain, CIT DR Date of Hearing 07/02/2025 Date of pronouncement 07/02/2025

O R D E R

PER M. BALAGANESH, A. M.:

1. The appeal in ITA No. 410/AGR/2024 for AY 2024-25, arises out of the order of the Commissioner of Income Tax (Exemption), Lucknow [hereinafter referred to as „ld. CIT(E)‟, in short] dated 22.08.2024.

2. The assessee has raised the following grounds of appeal before us :-

Grounds of Appeal “1. The Ld. CIT (Exemption) has erred in law and facts to reject the appellant's application for final registration u/s 12AB of the Income Tax Act 1961, without considering the charitable objective of the society.

2. The Ld. CIT (Exemption) has erred in law and facts to reject the registration application without considering that the society is an educational institution, which has been operating for several years and has held an old registration under section 12AA of the Income Tax Act from past many years.

3. The Ld. CIT (Exemption) has erred in law and facts to reject the application merely on the technical ground that the application was filed in clause

124(1)(ac)(iv) instead of 12A(1)(ac)(ii) without pointing out any adverse remark regarding nature of activity, objectives and status of educational society.

4. The Ld. CIT (Exemption) has erred in law and facts to wrongly reject the application without complying the provisions contained in 12AB(4) Le. specific violations for which registration u/s 12AB could be rejected.

5. The Ld. CIT (Exemption) has erred in law and fact by issuing a rejection order without providing a sufficient opportunity to us to be heard, thereby violating principles of natural justice.

6. The order Issued by the Ld. CIT (Exemption), is erroneous and arbitrary.

7. The order passed by the Ld. CIT (Exemption), is bad in law and against the facts of case.”

3. We have heard the rival submissions and perused the materials available on record. The assessee is an educational society and had been granted provisional registration under section 12AB of the Act. The assessee filed an application on 28-02-2024 seeking permanent registration in Form No. 10AB. The assessee mentioned in the said application that registration is being sought under section 12A(1)(ac)(iv) of the Act. The learned CIT (Exemptions), Lucknow vide letter dated 8-05-2024 issued to the assessee stated that the application for registration should have been filed by the assessee in terms of section 12A(1)(ac)(iii) of the Act as against section 12A(1)(ac)(iv) of the Act. Accordingly, the learned CIT(Exemptions) dismissed the application seeking for registration of the assessee stating that the same has been preferred under the wrong section. Aggrieved, the assessee is in appeal before us.

4. We find that the genuineness of the activities of the assessee society need to be examined by the Learned CIT (exemptions) in the instant case. We find that assessee trust should be granted one more opportunity before the learned CIT (exemptions) in the interest of substantial justice. We direct the assessee to prefer an application seeking registration under section

12A(1)(ac)(iii) of the Act in the prescribed form and learned CIT (exemptions) shall adjudicate the same de novo in accordance with law uninfluenced by earlier observations made in the impugned order. Needless to mention that the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with Learned CIT(exemptions) for expeditious disposal of the registration proceedings by not taking unwarranted adjournments. With these directions, the grounds raised by the assessee