CHETHANA EDUCATION TRUST,MANDYA vs. COMMISSIONER OF INCOME TAX, EXEMPTION, COMMISSIONER OF INCOME TAX, EXEMPTION, BANGALORE

The present appeal is delayed by 19 days. Along with the appeal, the assessee has filed an application seeking condonation of delay which is duly supported by an affidavit of the secretary of the assessee trust. After considering the submissions of the assessee made in the application seeking condonation of delay, we are of the considered view that there was sufficient cause which prevented the assessee from filing the present appeal within the prescribed limitation period. Accordingly, the delay in filing the present appeal is condoned, and we proceed to the other present appeal on the merits.

In this appeal, the assessee has raised the following grounds: - 1. The order of the learned CIT(E), Bangalore in so far as it is against the Appellant is opposed to law, weight of evidence, probabilities, facts and circumstances of the Appellant's case. 2. The learned CIT(E) is not justified in granting approval under section 12AB(1)(b) from AY 2027-28 as the approval should have been granted from AY 2026-27 since the application under form 10AB was made before the end of financial year 2025-26, on the facts and circumstances of the case. 3. The learned CIT(E) has failed to appreciate that the provision of section 11 and 12 will apply from the assessment year relevant to the financial year in which the application is made as envisaged under section 12A(2) and accordingly the approval ought to have been granted from AY 2026- 27 on the facts and circumstances of the case. 4. The Appellant craves to add, alter, modify, substitute, change and delete any or all of the grounds and to file a paper book at the time of hearing the appeal. 5. In the view of the above and other grounds that may be urged at the time of the hearing of appeal, the Appellant prays that the appeal may be allowed in the interest of justice and equity. 4. The solitary grievance of the assessee is against the grant of registration under section 12AB of the Act from assessment year 2027-28 to 2031-32, instead of granting the same from the assessment year relevant to the financial year in which the assessee filed an application seeking registration, i.e. from the assessment year 2026-27.

During the hearing, the learned Authorised Representative (“learned AR”) by referring to the provisions of section 12A(2) of the Act, submitted that as the assessee filed the application in Form 10AB on 30.09.2025, i.e. during the financial year 2025-26, therefore the assessee is entitled to registration under section 12AB of the Act from the assessment year 2026- 27. The learned AR submitted that instead of granting the registration from the assessment year 2026-27, the learned CIT(E) erred in granting the same from the assessment year 2027-28. In support of its contention, the learned AR placed reliance upon the decision of the Coordinate Bench in Shantha and Raja B. Singh Foundation vs. DIT(Exemptions), in ITA No. 2272/Mum./2012, vide order dated 30.04.2013. The learned AR further submitted that the assessee has also filed a rectification application before the learned CIT(E), which is currently pending consideration.

On the other hand, the learned Department Representative submitted that as the assessee has filed a rectification application, the learned CIT(E) shall take appropriate action in this regard.

We have considered the submissions of both sides and perused the material available on record. In the present case, it is undisputed that the assessee was granted registration under section 12AB of the Act by the learned CIT(E) vide order dated 28.03.2026. However, it is evident from the Page 3 of 6 record that the said registration was granted from the assessment years 2027-28 to 2031-32. As per the assessee, since it filed the application for registration in Form 10AB on 30.09.2025, which falls within the financial year 2025-26, the registration should have been granted from the assessment year 2026-27 in view of the provisions of section 12A(2) of the Act.

Before proceeding further, it is relevant to note the provisions of section 12A(2) of the Act, which reads as follows: - “(2) Where an application has been made on or alter the 1st day of June, 2007, the provisions of sections 11 and 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made:”

Thus, from the plain reading of the provisions of section 12A(2) of the Act, it is evident that where an application for registration is filed after 01.06.2007, the provisions of sections 11 and 12 granting exemption in relation to the income of the trust shall apply from the assessment year relevant to the financial year in which such application was made. In the present case, there is no dispute regarding the fact that the assessee filed the application seeking registration under section 12AB of the Act on 30.09.2025, which falls within the financial year 2025-26, i.e. relevant to the assessment year 2026-27. We find that the Coordinate Bench of the Tribunal in Shantha & Raja B. Singh Foundation (supra), in similar circumstances, observed as follows: -

Therefore, respectfully following the decision of the Coordinate Bench cited supra, in view of the provisions of section 12A(2) of the Act, we direct the learned CIT(E) to grant registration to the assessee under section 12AB of the Act from the assessment year 2026-27. Accordingly, the grounds raised by the assessee are allowed.

In the result, the appeal by the assessee is allowed. Order pronounced in the open court on 14th July, 2026