Chartered Accountants Sports Association vs. Commissioner of Income Tax (Exemptions)

Parties Involved

Facts Summary

The assessee (Chartered Accountants Sports Association) is a society registered under section 12AA of the Income Tax Act, 1961. Following an amendment in the Act, the assessee filed an application in Form 10A and obtained registration in Form 10AC under section 12A(1)(ac)(i) of the Income Tax Act on 28.05.2021 for a period of five years i.e. from A.Y. 2022-23 to 2026-27. During F.Y. 2022-23, the assessee modified its objects and filed an application in Form 10AB within 30 days from the date of said notification, as the newly added object was in addition to the conditions of registration granted earlier. However, the ld. CIT(Exemptions) rejected the application on the ground that Form 10AC was valid for five years from A.Y. 2022-23 to 2026-27 and therefore, the assessee’s application in Form 10AB, under section 12A(1)(ac)(v) was infructuous, non-maintainable and non-est. The assessee filed an application under section 154 on 23.03.2023 for correcting this order on account of the fact that its’ case was not a case under section 12A(1)(ac)(iii) but a case under section 12A(1)(ac)(v) and therefore, the rejection order passed by the ld. CIT(Exemptions) was passed under mistaken appreciation of facts. The assessee filed an appeal against the said order before the ITAT on 6.09.2023.…

Legal Issues

• 1. Whether the Ld. CIT(Exemptions) has erred in law and on facts by rejecting the application filed in Form 10AB under sub clause (v) of clause (ac) of sub-section 1 of Section 12A?
• 2. Whether the Ld. CIT(Exemptions) has erred in law by inadvertently invoking sub clause (iii) of clause (ac) of sub-section 1 of Section 12A?
• 3. Whether the registration should be granted?

Judgment Outcome

Decided in favour of Assessee.

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