SHREE KHAMLAY MATAJI TRUST PANSAR,GANDHINAGAR vs. THE CIT(EXEMPTION), AHMEDABAD

The brief facts of the case are that the assessee is a Trust and it had applied for registration u/s.12A(1)(ac)(v)of the Act in Form No.10AB on 12.06.2024. The Ld. CIT(E) noted that the trust deed was updated to expand [Shree khamlay Mataji Trust Pansar vs. CIT(E)] - 2 – the objective of the charitable activities. The Trust had filed an application for approval of modified trust deed before the Charity Commissioner which was approved vide order dated 25.08.2023. As per provision of Section 12A(1)(ac)(v) of the Act, the assessee was required to make an application ‘within a period of thirty days from the date of said adoption or modification’, which expired in this case on 24.09.2023. However, the present application was filed by the assessee belatedly on 12.06.2024. The assessee had not applied to CBDT for condonation of delay in this regard. Therefore, the application filed by the assessee in Form 10AB u/s.12A(1)(ac)(v)of the Act was rejected by the Ld. CIT(E) vide the impugned order.

Aggrieved with the order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds of appeal have been taken in this appeal:

Shri Mehul K Patel, Ld. AR of the assessee submitted that the application of the assessee was rejected for the reason that there was a delay in filing the present application. He explained that the Ld. CIT(E) had rejected the application for the reason that earlier the CIT(E) had no power to condone the delay in filing of the application. However, the provision of Section 12A(1)(ac) was amended and the PCIT or the CIT has now been empowered to condone the delay w.e.f. 01.10.2024. The Ld. Counsel, [Shree khamlay Mataji Trust Pansar vs. CIT(E)] - 3 – therefore, requested that the matter may be set aside to the file of the Ld. CIT(E) with a direction to condone the delay and, thereafter, consider the application of the assessee.

Per contra, Shri R. P. Rastogi, the Ld. CIT. DR had no objection if the matter was set aside to the file of Ld. CIT(E), in view of the amended provisions of the Act.

We have considered the rival submissions. The Ld. CIT(E) had rejected the application for the reason that there was a delay in filing of the present application. As per the finding given by the Ld. CIT(E), the assessee was required to file the present application ‘within a period of thirty days from the date of said adoption or modification of the trust deed’, which expired in this case on 24.09.2023; whereas the application was filed on 12.06.2024. When the application was filed by the assessee, the Ld. CIT(E) had no power to condone the delay. However, the provision of the Act was amended by insertion of following proviso below Section 12A(1)(ac)(vi), which was effective from 01.10.2024: Provided that where the application is filed beyond the time allowed in sub- clauses (i) to (vi), the Principal Commissioner or Commissioner may, if he considers that there is a reasonable cause for delay in filing the application, condone such delay and such application shall be deemed to have been filed within time; In the present case the order was passed by the ld. CIT(E) after the above proviso was brought on statute. As per this newly inserted proviso, the CIT(E) had now power to condone the delay in filing of application for registration u/s.12A(1)(ac)(vi) of the Act. Therefore, the ld. CIT(E) should have allowed an opportunity to the assessee to explain the delay in filing of the application. Being a procedural amendment, this amended provision was applicable to all pending applications. Therefore, the matter is set aside to [Shree khamlay Mataji Trust Pansar vs. CIT(E)] - 4 – the file of the Ld. CIT(E) with a direction to first consider the condonation application of the assessee and thereafter decide the application of the assessee for grant of registration. The assessee is also directed to file a condonation application before the Ld. CIT(E) explaining the reason for delay in filing the present application. The Ld. CIT(E) should allow a proper opportunity of being heard to the assessee before deciding the matter.

In the result, the appeal of the assessee is allowed for statistical purpose.