SRI RAMANANDA CHARITABLE AND EDUCATIONAL TRUST,UTTARA KANNADA vs. CIT(EXEMPTIONS), BENGALURU

PER KESHAV DUBEY, JUDICIAL MEMBER:

These appeals at the instance of the assessee are directed against the orders of the ld. CIT(Exemptions), Bengaluru both dated 06.09.2025 vide DIN & Notice No. ITBA/EXM/F/EXM45/2025- 26/1080390299(1) and vide DIN & Notice No. ITBA/EXM/F/EXM45/2025-26/1080390309(1) rejecting the applications u/s 12AB & 80G of the Income Tax Act, 1961 (in short “The Act”). Since both these appeals are inter-related and the grounds are common in nature, these are clubbed together, heard together and disposed of by this common order for the sake of convenience and brevity.

ITA No.2733& 2734/Bang/2025 Sri Ramananda Charitable and Educational Trust, Katgal Page 2 of 9 2. The assessee has raised the following grounds of appeal in ITA No.2733/Bang/2025, which is reproduced below:-

Grounds of Appeal No. 1.0 : The learned Commissioner of Income Tax (Exemptions) has erred on facts and law by not granting Registration u/s 12AB is against to the principle of natural justice and therefore the same are bad in law.

Grounds of Appeal No. 2.0 : The learned Commissioner of Income Tax (Exemptions) failed to appreciate the facts that, the Appellant has filed an application along with condonation of delay in the same year when the previous application was rejected as stipulated in the Income Tax Act,1961.

Grounds of Appeal No. 3.0 : The Appellant carves to add, modify any ground of appeal before the Hon. ITAT, Bengaluru.

ITA No.2733& 2734/Bang/2025 Sri Ramananda Charitable and Educational Trust, Katgal Page 3 of 9 belatedly. In view of the above, the application filed in form 10AB dated 22.12.2023 for registration u/s. 12AB of the Act was rejected and registration was cancelled.

3.1 Subsequently, a new proviso to section 12A(1)(ac) has been inserted by the finance (No.2) Act, 2024 w.e.f. 01.10.2024 wherein, if the application is filed beyond the time allowed in sub clause (i) to (vi), the principal commissioner or commissioner may if considers that there is a reasonable cause for delay in filing the application, condone such delay and such application shall be deemed to have been filed within time. After amendment of the law, the assessee had filed a fresh application in form 10AB on 13.03.2025 for final registration under section 12AB of the Act. The ld. CIT(E) on perusal of the submissions observed that the assessee had earlier applied for regularization of the provisional approval u/s. 12AB on 22.12.2023 and the application was rejected vide order dated 18.04.2024. In the opinion of ld. CIT(E), the rejection order has attained finality as no appeal was filed before the ITAT within the limitation u/s. 253 of the Act. It is also held that filing a fresh application for registration u/s. 12AB of the Act, for the same period, amounts to a collateral attack on a concluded decision and undermines the appellate framework recognized by law. In view of the above, the ld. CIT(E) held that the present application is not maintainable as non-est and thus, void-ab-initio and accordingly, rejected the application in form 10AB dated 13.03.2025 filed for registration u/s. 12AB of the Act.

ITA No.2733& 2734/Bang/2025 Sri Ramananda Charitable and Educational Trust, Katgal Page 4 of 9 5. Before us, the ld. AR of the assessee vehemently submitted that the first application filed by the assessee on 22.12.2023 had been rejected purely on technical reasons due to belated filing of form 10AB and the ld. CIT(E) also rejected the second application without verification on the merit of the case on the ground that filing a fresh application for registration u/s. 12AB of the Act for the same period amounts to a collateral attack on a concluded decision. Further, the ld. AR submitted that the ld. CIT(E) is vested with powers to condone the delay in filing of the application for permanent registration by virtue of amended provisions of the Act and accordingly prayed that this tribunal may condone the delay in filing the application and grant registration u/s. 12AB of the Act.

ITA No.2733& 2734/Bang/2025 Sri Ramananda Charitable and Educational Trust, Katgal Page 5 of 9 the limitation u/s. 253 of the Act. It was also held that filing a fresh application for registration u/s. 12AB of the Act, for the same period, amounts to a collateral attack on a concluded decision and undermines the appellate framework recognized by law and accordingly again rejected the application for registration.

7.1 We are of the firm opinion that for the purpose of granting registration, the ld. CIT(E) shall call for such documents or information or make such inquiry as he/she thinks necessary in order to satisfy himself/herself about the twin object:- (a) the genuineness of the activity of the trust and (b) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its object. After satisfying himself/ herself about the genuineness of the activities and the compliance of such requirements of any other law for the time being in force by the trust or institution, the ld. CIT(E) shall pass an order in writing granting registration for a period of 5/10 years or if he/ she is not so satisfied, pass an order in writing rejecting such application and also cancelling the registration after affording reasonable opportunity of being heard. Thus, we are of the considered opinion that there is no such bar/restriction under the Act on the assessee trust in filing the application in form 10AB for granting registration u/s. 12AB of the Act before the same Authority subsequently if the assessee trust satisfy all the conditions for granting registration u/s 12AB of the Act. The ld. CIT(E) on receipt of the application on each occasion has to satisfy himself/herself only about the genuineness of the activities of the trust and the compliance of such requirements of any other law for the time being in force by the trust for granting registration. Merely because, the assessee trust had not preferred an appeal against the earlier order dated 18.04.2024 passed by ld.CIT(E), the assessee

ITA No.2733& 2734/Bang/2025 Sri Ramananda Charitable and Educational Trust, Katgal Page 6 of 9 trust cannot not be barred from exercising its statutory right subsequently before the same Authority if it fulfills the conditions as laid down for granting registration u/s 12AB of the Act. The only consequence of subsequent filing of application before the ld.CIT(E) will be the effective date of granting the registration which will ultimately be the date of the latest application. Thus, while entertaining the application in Form 10AB filed on 13.03.2025, the ld. CIT(E) cannot grant the registration effective from the date of first application i.e. 22.12.2023. Therefore, in our considered opinion treating the application filed in Form No.10AB on 13.03.2025 to be not maintainable as non-est and void-ab-initio is highly unjustified and bad in law as there are no such provisions under the Act that once the application for registration is rejected then the assessee can never apply for registration before the same Authority forever. In the present case, the assessee trust only after the insertion of a new proviso to section 12A(1)(ac) of the Act by the finance (No.2) Act, 2024 w.e.f. 01.10.2024 had applied for the subsequent application in Form 10AB for registration u/s 12AB of the Act on the ground that there is a reasonable cause for the delay in filing & accordingly prayed to condone the delay. Therefore, in our considered opinion the rejection of the application on the ground that it amounts to a collateral attack on a concluded decision is contrary to law & cannot be sustained.

7.2 Now coming to the first application filed by the assessee on 22.12.2023, we observed that the ld. CIT(E) vide order dated 18.04.2024, had rejected the application of the assessee solely on the ground that the application was filed only on 22.12.2023, which is beyond the time limit specified u/s. 12A(1)(ac)(iii) of the Act and accordingly, the application was filed belatedly. In our considered opinion, with a view to avoid and mitigate genuine hardship, the

ITA No.2733& 2734/Bang/2025 Sri Ramananda Charitable and Educational Trust, Katgal Page 7 of 9 delay was already condoned by the CBDT vide circular No. 7/2024 dated 25.04.2024, wherein, it is specifically observed as follows:

“4.1 Further, in cases where any trust, institution or fund has already made an application in Form No. lOAB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may furnish a fresh application in Form No. 10AB within the extended time provided in paragraph 3(ii) i.e. 30.06.2024”

We also observed that the assessee had filed the second application for registration under 12AB of the Act only after the amendment made by the Finance (No.2) Act, 2024 w.e.f. 01.10.2024 wherein, if the application is filed beyond the time allowed in sub clause (i) to (vi), the principal commissioner or commissioner may if considers that there is a reasonable cause for delay in filing the application, condone such delay and such application shall be deemed to have been filed within time. In our considered opinion, as the CBDT with a view to avoid and mitigate genuine hardship had already condone the delay and directed to furnish a fresh application within the extended time i.e. 30.06.2024 and the assessee in the present case had filed the application only on 13.03.2025 after the amendment in the Finance (No.2) Act, 2024 w.e.f. 01.10.2024, we in order to meet the end of justice, direct the ld. CIT(E) to condone the delay in filing the application in Form No. 10AB dated 13.03.2025.

7.3 Having held so, we are also of the considered opinion that as the assessee could not represent its case before the ld. CIT (Exemptions) by submitting the relevant documents/details required for registration u/s 12AB of the Act, and considering the request of the ld. A.R. of the assessee, we deem it fit and proper to remit the entire issue of registration to the file of ld. CIT

ITA No.2733& 2734/Bang/2025 Sri Ramananda Charitable and Educational Trust, Katgal Page 8 of 9 (Exemptions) to decide afresh in accordance with law. Needless to say, a reasonable opportunity of being must be granted to the assessee. The assessee is also directed to produce all the relevant documents/records/accounts/certificate/ reports to prove the genuineness of its activities and the compliance of such requirements of any other law for the time being in force. It is ordered accordingly.

Grounds of Appeal No. 1.0 : The learned Commissioner of Income Tax (Exemptions) has erred on facts and law by not granting Registration u/s 80G is against to the principle of natural justice and therefore the same are bad in law.

Grounds of Appeal No. 2.0 : The learned Commissioner of Income Tax (Exemptions) failed to appreciate the facts that, the Appellant has filed an application along with condonation of delay in the same year when the previous application was rejected as stipulated in the Income Tax Act,1961.

Grounds of Appeal No. 3.0 : The Appellant carves to add, modify any ground of appeal before the Hon. ITAT, Bengaluru.

ITA No.2733& 2734/Bang/2025 Sri Ramananda Charitable and Educational Trust, Katgal Page 9 of 9 mutatis mutandis apply to the present appeal No. 2734/Bang/2025.

Order pronounced in the open court on 17th Aug, 2026

Sd/- Sd/- (Waseem Ahmed) (Keshav Dubey) Accountant Member Judicial Member

Bangalore, Dated 17th Aug, 2026. VG/SPS

Copy to:

Asst. Registrar, ITAT, Bangalore.