SHAD ADAM SHAIKH TRUST ,MUMBAI vs. CIT(E) , MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G” MUMBAI

BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI RAHUL CHAUDHARY (JUDICIAL MEMBER) ITA No. 2129/MUM/2026 Assessment Year: N.A.

Shad Adam Shaikh Trust, 90 CIT (Exemptions), Room No. 601, 92, Cadel Road, V S Marg 6th Floor, Chumballa Hill, MTNL Mahim West Mumbai – Vs. Building, Peddar Road, Mumbai – 400016, Maharashtra. 400026, Maharashtra. PAN NO. AAATS 0723 Q Appellant Respondent

: Shri Shashi Bekal, Adv Assessee by : Ms. Nidhi Agarwal – SR DR Revenue by

: 21/05/2026 Date of Hearing : 22/05/2026 Date of pronouncement

ORDER PER OM PRAKASH KANT, AM

The present appeal has been preferred by the assessee against the order dated 20.12.2025 passed by the learned Commissioner of Income-tax (Exemptions), Mumbai [hereinafter referred to as “the learned CIT(E)”], whereby the application filed by the assessee seeking regularisation of provisional registration under section 12AB of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) came to be rejected.

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(2018) 9 SCC 1, to hold that compliance with stat (2018) 9 SCC 1, to hold that compliance with statutory timelines utory timelines for claiming exemption benefits is mandatory in nature and for claiming exemption benefits is mandatory in nature and for claiming exemption benefits is mandatory in nature and requires strict adherence. requires strict adherence. The relevant finding of ld CIT(A) is relevant finding of ld CIT(A) is reproduced as under: reproduced as under:

“3. On verification of the application in Form 10AB filed by the applicant, it verification of the application in Form 10AB filed by the applicant, it verification of the application in Form 10AB filed by the applicant, it was found that the application was not complete, and all the documents was found that the application was not complete, and all the documents was found that the application was not complete, and all the documents required to be accompanying the application were not furnished. Hence, a required to be accompanying the application were not furnished. Hence, a required to be accompanying the application were not furnished. Hence, a notice notice was was issued issued to to the the applicant applicant vide vide DIN DIN & & Notice Notice No. No. ITBA/EXM/F/EXM43/2025 ITBA/EXM/F/EXM43/2025-26/1080970370(1) dated 20.09.2025 requesting 26/1080970370(1) dated 20.09.2025 requesting the applicant to furnish the complete set of documents mentioned in Rule the applicant to furnish the complete set of documents mentioned in Rule the applicant to furnish the complete set of documents mentioned in Rule 17A(2). In response to the above Notice, the applicant made submission vide 17A(2). In response to the above Notice, the applicant made submission vide 17A(2). In response to the above Notice, the applicant made submission vide letter dated 06.10.202 letter dated 06.10.2025 through ITBA/e-filing portal and furnished the filing portal and furnished the relevant details and documents. relevant details and documents. 3.1 On perusal of above submission of the applicant, details and documents 3.1 On perusal of above submission of the applicant, details and documents 3.1 On perusal of above submission of the applicant, details and documents attached with the Form 10AB and data available on ITBA/CPC portal, it is attached with the Form 10AB and data available on ITBA/CPC portal, it is attached with the Form 10AB and data available on ITBA/CPC portal, it is noticed that the applicant noticed that the applicant has obtained provisional registration vide order has obtained provisional registration vide order dated 05.10.2022 05.10.2022 in Form 10AC having validity from A.Υ. 2023 in Form 10AC having validity from A.Υ. 2023-24 to Α.Υ. 2025-26. As per Section 12A(1)(ac) (iii) of the Income tax Act: 26. As per Section 12A(1)(ac) (iii) of the Income tax Act:- "where the trust or institution has been provisionally registered under the trust or institution has been provisionally registered under the trust or institution has been provisionally registered under section 12AB, at least six months prior to expiry of period of the at least six months prior to expiry of period of the section 12AB, provisional registration or within six months of commencement provisional registration or within six months of commencement provisional registration or within six months of commencement of its activities, whichever is earlier,” activities, whichever is earlier,” 3.2 Thus, as per th 3.2 Thus, as per the above provision, since the trust has been carrying out e above provision, since the trust has been carrying out activities since obtaining provisional registration as on 05.10.2022 05.10.2022, the trust activities since obtaining provisional registration as on should have applied for regularisation of provisional registration latest by the should have applied for regularisation of provisional registration latest by the should have applied for regularisation of provisional registration latest by the end of the month of April, 2023 April, 2023 (being six months from the commencement of six months from the commencement of activities). However, the trust has filed application for regularization of activities). However, the trust has filed application for regularization of activities). However, the trust has filed application for regularization of provisional registration Order u/s 12A on provisional registration Order u/s 12A on 31.05.2025 i.e. after delay of i.e. after delay of 25 months, which is not valid as per the above provision as the applic which is not valid as per the above provision as the applic which is not valid as per the above provision as the application is filed beyond permissible time limit. filed beyond permissible time limit. 3.3 In view of the above mentioned violation of the provisions of time limitation 3.3 In view of the above mentioned violation of the provisions of time limitation 3.3 In view of the above mentioned violation of the provisions of time limitation for filing of Form 10AB, an opportunity was provided to the applicant vide DIN for filing of Form 10AB, an opportunity was provided to the applicant vide DIN for filing of Form 10AB, an opportunity was provided to the applicant vide DIN & & Notice Notice No. No. ITBA/EXM/F/EXM43/2025 ITBA/EXM/F/EXM43/2025-26/1082845345( 26/1082845345(1) dated 21.11.2025 to show cause why the application in Form 10AB should not be 21.11.2025 to show cause why the application in Form 10AB should not be 21.11.2025 to show cause why the application in Form 10AB should not be rejected on the grounds of application filed beyond permissible time limit. rejected on the grounds of application filed beyond permissible time limit. rejected on the grounds of application filed beyond permissible time limit. 4. In response thereto, the applicant submitted a reply on 27.11.2025 through 4. In response thereto, the applicant submitted a reply on 27.11.2025 through 4. In response thereto, the applicant submitted a reply on 27.11.2025 through the ITBA/e-filing por filing portal. However, on examination, it is observed that the tal. However, on examination, it is observed that the applicant has merely re applicant has merely re-submitted the same details and documents which submitted the same details and documents which were earlier furnished in response to the first Notice dated 20.09.2025. The were earlier furnished in response to the first Notice dated 20.09.2025. The were earlier furnished in response to the first Notice dated 20.09.2025. The said reply does not address the specific issues raised said reply does not address the specific issues raised nor does it furnish the nor does it furnish the information and explanations sought vide the Show Cause Notice dated information and explanations sought vide the Show Cause Notice dated information and explanations sought vide the Show Cause Notice dated

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21.11.2025. Accordingly, it is held that the applicant trust/institution has 21.11.2025. Accordingly, it is held that the applicant trust/institution has 21.11.2025. Accordingly, it is held that the applicant trust/institution has failed to furnish the reply to the aforesaid Show Cause Notice. failed to furnish the reply to the aforesaid Show Cause Notice. failed to furnish the reply to the aforesaid Show Cause Notice. 4.1 It is pertinent to mentioned that the CBDT has, from time to time, granted o mentioned that the CBDT has, from time to time, granted o mentioned that the CBDT has, from time to time, granted various extensions and provided for general condonation of delay, the latest various extensions and provided for general condonation of delay, the latest various extensions and provided for general condonation of delay, the latest being vide Circular No. 07/2024 dated 25.04.2024, permitting filing or re being vide Circular No. 07/2024 dated 25.04.2024, permitting filing or re being vide Circular No. 07/2024 dated 25.04.2024, permitting filing or re-filing of applications for registration in case of applications for registration in cases where trusts had failed to do so within s where trusts had failed to do so within the prescribed time or where such applications were rejected on specified the prescribed time or where such applications were rejected on specified the prescribed time or where such applications were rejected on specified grounds. However, the applicant has failed to avail the benefit of the said grounds. However, the applicant has failed to avail the benefit of the said grounds. However, the applicant has failed to avail the benefit of the said relaxation within the stipulated period. Further, the applicant relaxation within the stipulated period. Further, the applicant relaxation within the stipulated period. Further, the applicant has not been able to demonstrate any reasonable cause for the delay, nor has it established able to demonstrate any reasonable cause for the delay, nor has it established able to demonstrate any reasonable cause for the delay, nor has it established the existence of any genuine hardship which prevented it from filing the the existence of any genuine hardship which prevented it from filing the the existence of any genuine hardship which prevented it from filing the application within the prescribed due date. application within the prescribed due date. 4.2 It is clarified that the obligation to furn 4.2 It is clarified that the obligation to furnish Form No. 10AB within the ish Form No. 10AB within the prescribed due date is a statutory and substantive requirement, not a mere prescribed due date is a statutory and substantive requirement, not a mere prescribed due date is a statutory and substantive requirement, not a mere procedural formality. When an assessee seeks to avail the benefit of an When an assessee seeks to avail the benefit of an procedural formality. exemption under section 11(2) of the Act, being a beneficial provision, exemption under section 11(2) of the Act, being a beneficial provision, exemption under section 11(2) of the Act, being a beneficial provision, strict compliance with the prescribed conditions is necessary ompliance with the prescribed conditions is necessary ompliance with the prescribed conditions is necessary. This includes the timely filing of Form No. 10AB within the due date specified under includes the timely filing of Form No. 10AB within the due date specified under includes the timely filing of Form No. 10AB within the due date specified under Section 12A of the Act. Section 12A of the Act. 4.3 This position has been reaffirmed by the judgement of Hon'ble Supreme 4.3 This position has been reaffirmed by the judgement of Hon'ble Supreme 4.3 This position has been reaffirmed by the judgement of Hon'ble Supreme Court in the cases of PCIT vs. Wipro Ltd. (2022) 140 taxmann.com 223 (SC) of PCIT vs. Wipro Ltd. (2022) 140 taxmann.com 223 (SC) of PCIT vs. Wipro Ltd. (2022) 140 taxmann.com 223 (SC) where the apex court has held that compliance with statutory conditions, such where the apex court has held that compliance with statutory conditions, such where the apex court has held that compliance with statutory conditions, such as filing within the prescribed time is mandatory and cannot be relaxed, as as filing within the prescribed time is mandatory and cannot be relaxed, as as filing within the prescribed time is mandatory and cannot be relaxed, as exemption is a matter of legislative grace and exemption is a matter of legislative grace and available only upon strict available only upon strict fulfilment of the prescribed requirements. fulfilment of the prescribed requirements. 4.4 Reliance is also placed on the judgement of Hon'ble Supreme court in case 4.4 Reliance is also placed on the judgement of Hon'ble Supreme court in case 4.4 Reliance is also placed on the judgement of Hon'ble Supreme court in case of Commissioner of Customs vs. Dilip Kumar & Co. (2018) 9 SCC 1, where it of Commissioner of Customs vs. Dilip Kumar & Co. (2018) 9 SCC 1, where it of Commissioner of Customs vs. Dilip Kumar & Co. (2018) 9 SCC 1, where it was held that exemption notificat was held that exemption notifications must be read strictly, and the person ions must be read strictly, and the person claiming the exemption has to clearly prove eligibility. It was also held that if claiming the exemption has to clearly prove eligibility. It was also held that if claiming the exemption has to clearly prove eligibility. It was also held that if there is ambiguity about the scope of an exemption, the benefit of such there is ambiguity about the scope of an exemption, the benefit of such there is ambiguity about the scope of an exemption, the benefit of such ambiguity will go to the Revenue and not to the assesse ambiguity will go to the Revenue and not to the assessee. 5. Registration under section 12AB is to be granted in terms of the provisions . Registration under section 12AB is to be granted in terms of the provisions . Registration under section 12AB is to be granted in terms of the provisions of section 12AB(1)(b) of the Act after being satisfied about the objects of the of section 12AB(1)(b) of the Act after being satisfied about the objects of the of section 12AB(1)(b) of the Act after being satisfied about the objects of the trust or institution, the genuineness of activities, and the compliance of any trust or institution, the genuineness of activities, and the compliance of any trust or institution, the genuineness of activities, and the compliance of any other law for the time being in force as are material for the purposes of ime being in force as are material for the purposes of ime being in force as are material for the purposes of achieving its objects. In the view of above mentioned violation, the achieving its objects. In the view of above mentioned violation, the achieving its objects. In the view of above mentioned violation, the undersigned is left with no other option but to reject the application seeking undersigned is left with no other option but to reject the application seeking undersigned is left with no other option but to reject the application seeking registration under section 12AB of the Act. registration under section 12AB of the Act. 6. In the view of the above, the application for regularization of provisional view of the above, the application for regularization of provisional view of the above, the application for regularization of provisional registration in Form 10AB filed by the assessee is not allowable registration in Form 10AB filed by the assessee is not allowable registration in Form 10AB filed by the assessee is not allowable on the ground of late filing of application and non ground of late filing of application and non-compliance of the Show compliance of the Show Cause Notice. However, the applicant is at lib However, the applicant is at liberty to pursue the remedies erty to pursue the remedies available in Statute, without any prejudice. available in Statute, without any prejudice. 7. In conclusion, this application for grant of registration stands rejected. 7. In conclusion, this application for grant of registration stands rejected. 7. In conclusion, this application for grant of registration stands rejected.”

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4.1 It is an admitted position that the assessee had filed the It is an admitted position that the assessee had filed the It is an admitted position that the assessee had filed the application six months prior to expiry of the provisional application six months prior to expiry of the provisional application six months prior to expiry of the provisional registration period. However, according to the learned CIT(E), registration period. However, according to the learned CIT(E), registration period. However, according to the learned CIT(E), since the assessee had commenced charitable ac since the assessee had commenced charitable ac since the assessee had commenced charitable activities on provisional registration, the application ought to have been filed provisional registration, the application ought to have been filed provisional registration, the application ought to have been filed the application for regularisation within six months from the application for regularisation within six months from the application for regularisation within six months from commencement of such activities and not before expiry of the commencement of such activities and not before expiry of the commencement of such activities and not before expiry of the provisional provisional provisional registration registration registration period. period. period. Proceeding Proceeding Proceeding on on on the the the said said said interpretation, the learned CIT(E) treated the application as terpretation, the learned CIT(E) treated the application as terpretation, the learned CIT(E) treated the application as belated by more than 25 months. belated by more than 25 months.

4.2 In our considered opinion, the issue involved in the present In our considered opinion, the issue involved in the present In our considered opinion, the issue involved in the present appeal is no longer res integra and stands squarely covered by appeal is no longer res integra and stands squarely covered by appeal is no longer res integra and stands squarely covered by the decision of the Coordinate Benc the decision of the Coordinate Bench of the Tribunal in h of the Tribunal in Anybody Can Help Foundation v. Income Can Help Foundation v. Income-tax Officer (Exemption) tax Officer (Exemption) reported in [2026] 182 taxmann.com 229. In the said decision, after in [2026] 182 taxmann.com 229. In the said decision, after in [2026] 182 taxmann.com 229. In the said decision, after extensively extensively extensively analysing analysing analysing the the the amended amended amended statutory statutory statutory framework framework framework governing charitable registration introduced with e governing charitable registration introduced with e governing charitable registration introduced with effect from 01.04.2021, the Coordinate Bench held that where a trust or 01.04.2021, the Coordinate Bench held that where a trust or 01.04.2021, the Coordinate Bench held that where a trust or institution had commenced charitable activities much prior to the institution had commenced charitable activities much prior to the institution had commenced charitable activities much prior to the

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introduction introduction introduction of of of the the the provisional provisional provisional registration registration registration regime, regime, regime, the the the requirement of filing an application within six months from requirement of filing an application within six months from requirement of filing an application within six months from commencement of activities would have no application. It was mmencement of activities would have no application. It was mmencement of activities would have no application. It was further held that in such cases, the relevant requirement would further held that in such cases, the relevant requirement would further held that in such cases, the relevant requirement would be filing of the application at least six months prior to expiry of be filing of the application at least six months prior to expiry of be filing of the application at least six months prior to expiry of provisional registration. The Coordinate Bench, while interpretin provisional registration. The Coordinate Bench, while interpretin provisional registration. The Coordinate Bench, while interpreting the statutory provisions, observed as under: the statutory provisions, observed as under:

“9. We have considered the rival submissions and perused the material We have considered the rival submissions and perused the material We have considered the rival submissions and perused the material available on record. It is an admitted position that the assessee trust available on record. It is an admitted position that the assessee trust available on record. It is an admitted position that the assessee trust commenced its activities on 01.02.2016, whereas the provisional ap commenced its activities on 01.02.2016, whereas the provisional ap commenced its activities on 01.02.2016, whereas the provisional approval under section 80G was granted on 31.08.2021. Thus, the commencement of under section 80G was granted on 31.08.2021. Thus, the commencement of under section 80G was granted on 31.08.2021. Thus, the commencement of activities clearly predates both the grant of provisional approval and the activities clearly predates both the grant of provisional approval and the activities clearly predates both the grant of provisional approval and the introduction of the provisional approval regime itself with effect from introduction of the provisional approval regime itself with effect from introduction of the provisional approval regime itself with effect from 01.04.2021. 10. The controversy raised before us is no longer res integra. The coordinate raised before us is no longer res integra. The coordinate Bench of the Tribunal in National Association for the Blind (supra), after Bench of the Tribunal in National Association for the Blind (supra), after Bench of the Tribunal in National Association for the Blind (supra), after considering and following a series of earlier decisions including Kailashmath considering and following a series of earlier decisions including Kailashmath considering and following a series of earlier decisions including Kailashmath Trust v. CIT (Exemption) [IT Appeal No.1177/ Trust v. CIT (Exemption) [IT Appeal No.1177/Pun/2023, dated 5.01.2024], has Pun/2023, dated 5.01.2024], has examined the scheme of section 80G(5) in the light of the amendments examined the scheme of section 80G(5) in the light of the amendments examined the scheme of section 80G(5) in the light of the amendments introduced by the Finance Act, 2020, the Memorandum explaining the introduced by the Finance Act, 2020, the Memorandum explaining the introduced by the Finance Act, 2020, the Memorandum explaining the provisions, and the Budget Speech of the Hon'ble Finance Minister. provisions, and the Budget Speech of the Hon'ble Finance Minister. provisions, and the Budget Speech of the Hon'ble Finance Minister. 11. The consistent ra 11. The consistent ratio emerging from these decisions is that the concept of tio emerging from these decisions is that the concept of provisional approval was primarily introduced to facilitate newly constituted provisional approval was primarily introduced to facilitate newly constituted provisional approval was primarily introduced to facilitate newly constituted trusts or institutions which had not yet commenced their charitable activities. trusts or institutions which had not yet commenced their charitable activities. trusts or institutions which had not yet commenced their charitable activities. The requirement contained in clause (iii) The requirement contained in clause (iii) of the proviso to section 80G(5) of the proviso to section 80G(5) prescribing filing of an application within six months from commencement of prescribing filing of an application within six months from commencement of prescribing filing of an application within six months from commencement of activities is intended to operate only in such cases. For trusts and institutions activities is intended to operate only in such cases. For trusts and institutions activities is intended to operate only in such cases. For trusts and institutions which were already in existence and carrying on charitable activ which were already in existence and carrying on charitable activ which were already in existence and carrying on charitable activities prior to the grant of provisional approval, the relevant and operative time limit is the the grant of provisional approval, the relevant and operative time limit is the the grant of provisional approval, the relevant and operative time limit is the requirement to apply at least six months prior to the expiry of the provisional requirement to apply at least six months prior to the expiry of the provisional requirement to apply at least six months prior to the expiry of the provisional approval. 12. The coordinate Benches have further held that a literal interpretat 12. The coordinate Benches have further held that a literal interpretat 12. The coordinate Benches have further held that a literal interpretation of the phrase "within six months commencement of activities" so as to apply it to phrase "within six months commencement of activities" so as to apply it to phrase "within six months commencement of activities" so as to apply it to long-standing trusts would lead to an absurd and unintended consequence, standing trusts would lead to an absurd and unintended consequence, standing trusts would lead to an absurd and unintended consequence, namely that such trusts would be permanently barred from seeking approval namely that such trusts would be permanently barred from seeking approval namely that such trusts would be permanently barred from seeking approval under section 80G, whic under section 80G, which could never have been the legislative intent. Such an h could never have been the legislative intent. Such an interpretation would render the statutory scheme unworkable and defeat the interpretation would render the statutory scheme unworkable and defeat the interpretation would render the statutory scheme unworkable and defeat the object of the amendments introduced to simplify and streamline the object of the amendments introduced to simplify and streamline the object of the amendments introduced to simplify and streamline the registration process. process.

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4.4 Respectfully following the aforesaid binding decision of the Respectfully following the aforesaid binding decision of the Respectfully following the aforesaid binding decision of the Coordinate Bench, we hold that there was no delay on the part of Coordinate Bench, we hold that there was no delay on the part of Coordinate Bench, we hold that there was no delay on the part of the assessee in filing the application for regularisation the assessee in filing the application for regularisation the assessee in filing the application for regularisation of provisional registration under section 12AB of the Act within the provisional registration under section 12AB of the Act within the provisional registration under section 12AB of the Act within the period of six months prior to expiry of provisional registration. If period of six months prior to expiry of provisional registration. If period of six months prior to expiry of provisional registration. If delay any beyond that period may be examined in accordance delay any beyond that period may be examined in accordance delay any beyond that period may be examined in accordance with law. Consequently, the impugned order passed by the with law. Consequently, the impugned order passed by the with law. Consequently, the impugned order passed by the learned CIT(E) cannot be sustained. earned CIT(E) cannot be sustained.

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Order pronounced in the open Court on ounced in the open Court on 22 22/05/2026.

(RAHUL CHAUDHARY RAHUL CHAUDHARY) (OM PRAKASH KANT OM PRAKASH KANT) JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 22/05/2026 Kunal Kumar, P.S.

Copy of the Order forwarded to Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, BY ORDER, //True Copy// (Assistant Registrar) (Assistant Registrar) ITAT, Mumbai ITAT, Mumbai