RAHMAN KHAN EDUCATIONAL AND CHARITABLE TRUST,CHENNAI vs. CIT, EXEMPTIONS,, CHENNAI

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ITA 2367/CHNY/2025Status: DisposedITAT Chennai09 December 2025Bench: us, the Ld.AR submitted that mere delay in filing Form No.10AB seeking final registration would not automatically result in rejection of such claim and stated the reasons for such delay. Further, he brought our attention that the proviso to Section 12A(1)(vi) of the Act brought in vide Finance Act No.2 of 2024 had empowered the Ld.CIT(E) with the discretion to consider and condone the delay in filing the application if there is a reasonable cause for such delay in filing the application. He3 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found the delay in filing Form 10AB to be condonable, citing genuine difficulty and the smallness of the delay. The matter was remanded to the CIT(E) to consider the application afresh on its merits, providing the assessee with a fair opportunity, and without being influenced by the previous findings.

What were the facts?

Rahman Khan Educational and Charitable Trust (assessee) filed an application for registration under Section 12AB on 24.10.2024, which was beyond the stipulated due date of 30.09.2024. The CIT(E) rejected this application on 21.06.2025 as not maintainable due to the delay and on other grounds relating to the Trust's objects.

What were the issues?

Whether the delay in filing the application for registration under Section 12AB should be condoned, and whether the CIT(E) was justified in rejecting the application without considering the condonation of delay and the merits.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1)(ac)(iii),Section 12A(1)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI

Before: SHRI MANU KUMAR GIRI & SHRI S. R. RAGHUNATHA

For Respondent: Shri. AR. V. Sreenivasan, C.I.T
Hearing: 23.10.2025Pronounced: 09.12.2025

आदेश /O R D E R

PER S. R. RAGHUNATHA, AM :

1.

The above appeal is filed against the order of the Commissioner of Income Tax (Exemption), Chennai, vide order dated 21.06.2025 in respect of rejection of application u/s.12AB of the Income Tax Act, 1961 (in short ‘the Act’).

2.

The brief fact of the case is that the assessee had filed an online application in Form No.10AB on 24.10.2024, u/s.12A(1)(ac)(iii) of the Act,

:-2-: ITA. No.:2367/Chny/2025 seeking registration u/s.12AB of the Act. While processing the said application, the ld.CIT(E) had rejected the application on 21.06.2025 as not maintainable since the same was not filed within the stipulated time 30.09.2024 and on other grounds relating to the objects of the Trust.

3.

Before us, the Ld.AR submitted that mere delay in filing Form No.10AB seeking final registration would not automatically result in rejection of such claim and stated the reasons for such delay. Further, he brought our attention that the proviso to Section 12A(1)(vi) of the Act brought in vide Finance Act No.2 of 2024 had empowered the ld.CIT(E) with the discretion to consider and condone the delay in filing the application if there is a reasonable cause for such delay in filing the application. He argued that the ld.CIT(E) ought to have exercised such discretion by condoning the delay in filing the application. The Ld.AR also brought our attention to the trust deed of the Trust and argued that the activities of the Trust were entitled for registration u/s.12AB of the Act.

4.

Per contra, the ld.DR argued that the assessee has filed the application belatedly and also not participated in the proceedings and hence prayed for confirmation of the order of ld.CIT(E).

5.

We have heard the rival submissions and perused the materials available on record. It is evident that the application u/s.12A(1)(ac)(iii) has only been filed on 24.10.2024 as against the stipulated due date on 30.09.2024. However, considering the genuine difficulty faced by the assessee trust resulting in such delay and considering the smallness of delay, it is found to be condonable. In such circumstances, we find it fit to condone the delay in filing the application in Form 10AB.

6.

Since, the ld.CIT(E) had not condoned the delay and however had rendered findings on merits we deem it fit to remand the matter to the file of the ld.CIT(E) by condoning the delay with a direction to consider the application

:-3-: ITA. No.:2367/Chny/2025 afresh without being influenced by the findings in the impugned order. Needless to say, that the assessee shall substantiate its case on the eligibility for grant of registration u/s.12AB of the Act.

7.

In light of the above directions, we direct the ld.CIT(E) to consider the application filed in Form 10AB afresh by affording sufficient opportunity to the assessee and decide the matter in accordance with law.

8.

In the result the appeal of the assessee allowed for statistical purposes.

Order pronounced in the open court on 09th December, 2025 at Chennai.

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