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Facts
The Assessee, Nanha Tara Welfare Foundation, filed appeals against orders denying registration under Section 12A and 80G of the Income Tax Act. The denial was based on the application for registration being considered belated or delayed.
Held
The Tribunal held that the Assessee's application for registration under Section 12A was not belated, considering the timelines of their activities and provisional registration. Consequently, the impugned orders were set aside.
Key Issues
Whether the application for registration under Section 12A of the Income Tax Act was filed within the prescribed time limit, considering the assessee's activities and prior provisional registration.
Sections Cited
12A, 80G, 12AA
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Income Tax Appellate Tribunal, MUMBAI BENCH “B”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRYSHRI PRABHASH SHANKAR
O R D E R
Per : Narender Kumar Choudhry, Judicial Member:
These appeals have been preferred by the Assessee against the orders even dated 21.06.2025, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Exemption) (in short Ld. CIT(E)) u/s 12A and 80G of the Income Tax Act, 1961 (in short ‘the Act’).
These appeals under consideration are having involved issues qua registration u/s 12AB of 80G of the Act and thus the same were heard together and are being disposed of by this Composite order.
First, we will decide which pertains to denial of registration u/s 12AB of the Act by Ld. Commissioner, & 5094/M/2025 Nanha Tara Welfare Foundation vide impugned order dated 21.06.2025 mainly considering the application filed by the Assessee for registration u/s 12, as belated or delayed.
We observe from the relevant provisions of Act relating to registration u/s 12A of the Act that the application for regular registration is required to be filed:
(i) at least 6 months prior to expiry of the provisional registration OR (ii) within 6 months of commencement of the activities, whichever is earlier.
In this case, the Assessee trust was initially registered with the Charity Commissioner, Mumbai, vide registration No. E-28565 Mumbai dated 09.03.2012 and started its activities and thereafter was originally granted registration u/s 12AA of the Act w.e.f. 2014- 15, vide order dated 16.04.2014 passed by Director Income Tax (E) Mumbai and thereafter vide provisional registration order dated 24.09.2022 valid from A.Y. 2023-24 to A.Y. 2025-26 u/s 12A of the Act.
Thus, the provision of the Act for filing an appropriate application for registration u/s 112A of the Act, within 6 months from the commencement of the activities would not be applicable, as Assessee started its activities in the A.Y. 2011-12 itself after getting registration dated 09.03.2012 and also having valid provisional registration dated 24.09.2022 valid upto 2025-26 and thus, the Assessee is supposed to file an appropriate application for registration u/s 12A of the Act, at least 6 months before the expiry of the provisional registration granted, somehow that situation though has not arisen so far, however, the Assessee by considering abundant precaution, had filed appropriate
Thus, on the aforesaid analyzations, the impugned order is set aside and case is remanded to the file of the Ld. Commissioner for decision on merits, by treating the application filed by assessee for regular registration u/s 12A of the Act, as valid and within the time limit, as prescribed under the provisions of the Act, as applicable thereto. Thus, the appeal i.e. stands allowed in the above directions. which pertains to registration u/s. 80G of the Act, which is consequential to the registration u/s 12A of the Act and thus in view of our decision in the instant appeal i.e. ITA 5093/M/2025, is also allowed by remanding the case to the file of the Ld. Commissioner on decision on merit, sufficient to say by giving reasonable opportunity of being heard to the Assessee, in the same terms as set out in ITA No. 5093/M/2025.
In the result, both the appeal under consideration are allowed for statistical purposes.
Order pronounced in the open court on 31.10.2025.