SRIMANTHI KANTHIMATHI KUMARASWAMI MUDALIAR KALYANAMANDAPAM TRUST,CHITTOOR vs. CIT (EXEMPTION), HYDERABAD

The assessee has raised the following grounds of appeal:

The learned AR of the assessee has submitted that the assessee Trust was formed and commenced its activities in the year 1978, however, the assessee applied for registration u/s 12A which was granted as provisional registration u/s 12A(1)(ac)(vi) of the Act. Thereafter, the assessee applied for regular registration u/s 12AB of the Act which was rejected by the CIT (Exemptions) on the ground that the application filed by the assessee in Form 10AB is barred by limitation. The learned AR has pointed out that Page 4 of 10 when the assessee has already commenced its activities in the year 1978, then the computation of limitation within 6 months from the date of commencement of the activities is highly unjustified and invalid. He has submitted that the provisional registration was granted from the A.Y 2023-24 to 2025-26 and therefore, the application filed by the assessee for regular registration on 17/09/2024 is within the period of limitation by considering the expiry of the provisional registration on 31/03/2025. In support of his contention, he has relied upon the decision of this Tribunal dated 2/7/2025 in the case of Shri Shiva Kiran Charitable Trust vs. CIT (Exemptions) in 2025. Thus, the learned AR has submitted that the impugned order of the CIT (Exemptions) is not sustainable in law and liable to be set aside.

On the other hand, the learned DR has relied upon the impugned order of the CIT (Exemptions).

We have considered the rival contentions as well as the relevant material available on record. The assessee was granted the provisional registration on 1/9/2022 valid from A.Y 2023-24 to A.Y 2025-26. Thereafter, the assessee filed the application in Form 10AB for regular registration u/s 12AB on 17/09/2024 which was rejected by the CIT (Exemptions) as under:

Thus, the CIT (Exemptions) has held that the application filed by the assessee is beyond the time limit and referred to CBDT Circular No.7/2024 whereby the time limit was extended up to 30/06/2024. It is pertinent to note that when the assessee came into existence and commenced its activities in the year 1978, then the limitation for filing the application in Form 10AB for regular registration u/s 12AB is to be considered in the context of the expiry of the provisional registration and not in the context of the commencement of the activities of the assessee. We further note that the assessee has filed the financial statements before the CIT (Exemptions) showing the existence and Page 6 of 10 commencement of the activities of the assessee prior to the grant of provisional registration. An identical issue has been considered by this Tribunal in case of Shiv Kiran Charitable Trust vs. CIT (Exemptions) in dated 2/7/2025 and in paras 5 and 6 held as under:

Accordingly, by considering the validity of the provisional registration in the case of the assessee up to 31/03/2025, the application filed by the assessee in Form 10AB for regular registration on 17/09/2024 is well within the period of limitation, being six months before the expiry of provisional registration. Further, the CBDT Circular as referred by the CIT (Exemptions) is also not relevant in the case of the assessee where the provisional registration was granted from the A.Y 2023-24 to 2025-26. Hence, in the facts and circumstances of the case and in view of the earlier order of this Tribunal cited (Supra), the impugned order of the CIT (Exemptions) is set aside and the matter is remanded to the record of the CIT (Exemptions) for reconsideration of the application of the assessee for grant of regular registration u/s 12AB of the I.T Act on merit by considering all the relevant facts, details as well as record. We order accordingly.

In the result, appeal filed by the assessee is allowed for statistical purposes.