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Facts
The assessee's application for registration under Section 12AB of the IT Act was rejected by the CIT for being filed beyond the prescribed time limit, despite a delay of 224 days in filing the appeal. The assessee had also filed the application beyond the time limit prescribed for renewal of provisional registration.
Held
The Tribunal condoned the delay in filing the appeal, acknowledging the reasons provided in the affidavit. The Tribunal also noted a CBDT circular extending the deadline for filing applications. Considering the facts and interest of justice, the Tribunal set aside the CIT's order.
Key Issues
Whether the rejection of the application for registration under Section 12AB solely on technical grounds of delay is justified, especially in light of subsequent CBDT circulars providing extensions.
Sections Cited
12AB, 12A(1)(ac)(iii)
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Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
Poornawadi Jeshtha Nagrik Vs. CIT, Exemption, Pune. Sangha Parner, Guruwada, Parner, Ahemadnagar- 414302. PAN : AADTP7416N Appellant Respondent Assessee by : Smt. Deepa Khare Revenue by : Shri Amit Bobde Date of hearing : 30.07.2025 Date of pronouncement : 30.07.2025 आदेश / ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 24.04.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act.
There is delay of 224 days in filing of the present appeal. We are satisfied with the reasons mentioned in the affidavit for condonation that the applicant was prevented by sufficient cause for not filing the appeal within the prescribed time limit. Ld. DR has 224 days and proceed to adjudicate the appeal.
Facts of the case, in brief, are, that the assessee has filed application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act on 21.10.2023. With a view to verify the genuineness of activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, a notice was issued by Ld, CIT, Exemption, Pune through ITBA portal on 11.01.2024 requesting the assessee to upload certain information/clarification. In reply to the said notice, the desired information was furnished by the assessee. On verification of the information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies, therefore, issued another notice on 04.04.2024 and asked the assessee to furnish various other details. It was also observed by Ld. CIT, Exemption, Pune that the expiry date of provisional registration u/s 12AB of the IT Act was 31.03.2024 and therefore the assessee was required to apply for regular registration at least six months prior to expiry of period of provisional registration or within six months from the date of commencement of its activities, whichever is earlier. Since the 31.03.2024, the assessee was required to file the application on or before 30.09.2023. However, the present application is filed on 21.10.2023 accordingly, Ld. CIT, Exemption, Pune was of the view that it is beyond the prescribed time limit allowed u/s 12A(1)(ac)(iii) of the IT Act and therefore in the absence of any reply on this issue, Ld. CIT, Exemption, Pune rejected the application filed by the assessee. It is this order against which the assessee is in appeal before this Tribunal.
Ld. AR appearing from side of the assessee trust submitted before us that the application for registration u/s 12A(1)(ac)(iii) was rejected merely on a technical ground of filing the application belatedly since the assessee could not reply to the notice. It was submitted by Ld. Counsel of the assessee that according to the Circular No.7/2024 dated 25.04.2024 issued by CBDT the time limit to furnish the application was extended up to 30th June 2024. Accordingly, Ld. AR requested before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune and further requested to direct him to treat the application as filed within time.
5. Ld. DR appearing from side of the Revenue supported the order passed by Ld. CIT, Exemption, Pune & requested to confirm the same.
We have heard Ld. Counsels from both the sides and perused the material available on record. In this regard, we find that the provisional registration was granted upto 31.03.2024 and therefore the assessee was required to file application for permanent registration on or before 30.09.2023. However, the application was filed on 21.10.2023 i.e. with the delay of 21 days. Admittedly, CBDT vide Circular No.7/2024 dated 25.04.2024 has already permitted to file application for permanent registration u/s 12AB of the IT Act upto 30th June, 2024 and therefore, considering the totality of the facts of the case and in the interest of justice, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to his file with a direction to treat the application as filed within time and decide the issue afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT, Exemption, Pune in this regard and produce relevant documents/evidences, if any, in support of application for registration u/s 12A(1)(ac)(iii) of the IT Act without