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TMI Blog2025 (5) TMI 1562X X X X Extracts X X X X X X X X Extracts X X X X ..... to as 'the Act') and ITA No.58/Chny/2025 is against the order of the Ld.CIT(E) dated 15.11.2024 rejecting the application filed by the assessee dated 30.05.2024 in Form No.10AB under Rule 11AB of the Income Tax Rules, 1962 (hereinafter referred to as 'the Rules') seeking approval u/s. 80G(5)(iii) of the Act. 2. At the outset, the Ld.AR of the assessee pointed out that even though the Ld.CIT(E) vide order dated 12.11.2024 has allowed the grant of regular registration u/s. 12AB(1) of the Act for five (5) years from AYs 2024-25 to 2028-29, after it was granted provisional registration initially u/s. 12AB of the Act vide earlier order dated 28.12.2023, but its grievance is that Ld CIT(E) while granting registration has treated the nature of it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d action, the assessee has challenged by filing appeal numbered as ITA No.58/Chny/2025. 3. Brief facts are that assessee 'a Section 8 Company' which was formed on 18.11.2023 has been carrying on charitable activities. The objects of 'a Section 8 Company' are, inter alia, to establish building and run schools, colleges for primary, secondary and higher education in any field and to help addressing hunger and to prove for deserving public clean nutritious food; to facilitate medical relief to the poor and under privilege public, etc. The assessee is noted to have filed for provisional registration u/s. 12AB of the Act which was granted vide order dated 28.12.2023 for three (3) years from AYs 2024-25 to 2026-27 as well as it was granted provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be faulted because assessee company itself has filled up the Form 10AB and has even replied initially as it is "religious-cum-charitable". Therefore, even if the assessee later asserted before the Ld.CIT(E) that its object was only to do charitable activity, the Ld.CIT(E) has rightly held it to be "religious- cum-charitable" and doesn't want us to interfere. 5. Having heard both the parties and after perusal of the records, it is noted that the assessee is 'a Section 8 Company' incorporated in 2023 and has applied for provisional registration u/s. 12AB/80G of the Act which was granted for three (3) years vide order dated 28.12.2023 [refer Page Nos.24 to 27 of the Paper Book]. Thereafter, the assessee is noted to have filed an application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not be a fetter in the way of substantial justice. However, the Ld.CIT-DR justifying the action of the Ld.CIT(E) was of the view that processing of application and granting of registration are carried out in the ITBA portal and there is no functionality available in the system to change the nature of trust other than what has been applied by the applicant in Form 10AB. According to him, the registration can be granted only on the basis of nature of assessee mentioned in the application filed in Form 10AB. Hence, according to the Ld.DR, the assessee's request for granting registration as Charitable Institution as against "religious-cum-charitable" as applied in Form No.10AB was rightly rejected by the Ld.CIT(E). We don't countenance the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Journals Ltd. v. Mysore Paper Mills Ltd., reported in [2006] 69 SCL 311 (SC), it was observed by the Hon'ble Supreme Court - "... Rules of procedure cannot be a tool to circumvent the justice. In fact, the Rules are laid to help for speedy justice ... Technical defects in petition are curable.....". 6. In Owners & Parties interested in MV Vali Perov. Fernandeo Lopez AIR 1989 SC 2206, it was observed - Rules of procedure are not by themselves an end but means to achieve the ends of justice. Rules of procedure are tools forged to achieve justice and are not hurdles to obstruct the pathway to justice. Construction of a rule of procedure which promotes justice and prevents its miscarriage by enabling the Court to do justice in myriad situati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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