Appeal withdrawn against rejection u/s 12AB as assessee was availing benefit u/s 10(23C)(iiiad)

ITAT allows withdrawal of appeal against rejection of registration u/s 12AB as assessee had been availing benefit of blanket exemption u/s 10(23C)(iiiad)

In a recent judgment, ITAT Jodhpur allowed withdrawal of appeal against rejection of applications filed for registration u/s 12AB as assessee had been availing benefit of blanket exemption u/s 10(23C)(iiiad) and therefore the question of registration u/s 12AB did not arise at this stage.

ABCAUS Case Law Citation:
5136 (2026) (05) abacus.in ITAT

In the instant case, the assessee had challenged the order passed by the CIT Exemption rejecting its applications filed for registration u/s 12AB and approval u/s 80G of the Income Tax Act, 1961 (the Act).

Before the Tribunal, the appellant filed an application stating therein that the appellant’s aggregate annual receipts have remained below Rs. 5 crore since inception and continue to be so. Accordingly, the appellant was eligible for exemption u/s 10(23C)(iiiad) of the Act, which was available automatically by operation of law to any educational institution whose aggregate annual receipts do not exceed the prescribed limit of Rs. 5 crore. No separate registration u/s 12AB or approval u/s 80G is required for this purpose.

It was further stated that the appellant had taken a considered decision to withdraw these applications unconditionally and voluntarily.

The assessee also stated that it expressly reserves its right to file fresh applications for registration u/s 12AB and/or approval u/s 80G under the law once its receipts exceed the threshold limits prescribed u/s 10(23C)(iiiad) and that this withdrawal shall not prejudice such right, nor shall it be treated as acceptance of any adverse findings in the impugned orders.

The Tribunal observed that considering the facts that assessee had been availing benefit of blanket exemption u/s 10(23C)(iiiad), the question of registration u/s 12AB did not arise at this stage.

Accordingly, the Tribunal accepted the request of the assessee as genuine and allowed it to withdraw the appeals in question.

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