SHOOTING STARS FOUNDATION,CHENNAI vs. CIT, EXEMPTIONS,, CHENNAI

The assessee is a charitable trust which was created on 28.12.2020. The assessee received the provisional registration in Form 10AC on 27.05.2021. The assessee applied for permanent registration under section 12A and got the approval for permanent registration vide order dated 23.01.2024 for the period AY 2021-22 to AY 2025-26. Subsequently, the assessee applied for renewal of registration under section 12A on 27.09.2024 which is within six months from the end of the corresponding AY 2025-26. Since the assessee is an existing Trust in the application for renewal in Form 10AB the assessee has stated the section under which registration is sought as section 12A(1)(ac)(ii). The CIT(E) rejected the application for renewal stating that the assessee is holding only provisional registration and therefore, should have applied for permanent registration under section 12A(1)(ac)(iii) of the Act. The assessee is in appeal against the order of the CIT(E).

We heard the parties and perused the material on record. The ld. AR brought to our attention that the assessee trust is already having a permanent registration under section 12A (page 5 to 9 of PB) and that the CIT(E) has incorrectly considered only the provisional registration. From the perusal of the provisions of section 12A(1)(ac)(ii) we notice that the Trust or Institution which is registered under section 12AB and the period of said registration is due to expire is required to apply for renewal at least six months prior to the expiry period. We further notice Shooting Stars Foundation that the as per provisions of section 12A(1)(ac)(iii), we notice that it is applicable to Trust or Institutions which are provisionally registered under section 12AB wherein the application for permanent registration is required to be made within six months from the commencements of activities or at least six months prior to the expiry of period of provisional registration whichever is earlier. From the perusal of records, we noticed that the assessee vide order dated 23.01.2024 in Form 10AB received the final registration under section 12AB for the period AY 2021-22 to 2025-26. Therefore, we see merit in the submissions that the application for renewal in assessee's case is required to be made under section 12A(1)(ac)(ii) and not under section 12A(1)(ac)(iii) as held by the CIT(E). Since the CIT(E) has rejected the application for renewal of registration based on the misunderstood fact that the assessee is having only provisional certificate and not considered the final registration we are remitting the appeal back to the CIT(E) with a direction to consider the application made for renewal of registration taking into account the fact that the assessee is already having the final registration under section 12A of the Act. The CIT(E) is further directed to examine the application on merits and grant the registration in accordance with law. Needless to say that the assessee be given a reasonable opportunity of being heard. It is ordered accordingly.

In result, appeal of the assessee is allowed.