SAHIB DAYAL FOUNDATION,CHANDIGARH vs. COMMISSIONER OF INCOME TAX(EXEMPTIONS), CHANDIGARH

Upon perusal of impugned order, it could be seen that the asssessee commenced its activities on 04-04-2008. In the new regime of registration, the assessee applied for provisional registration which was granted by CPC on 10-01-2024. However, post 01-10-2023, such provisional registration could be granted only in case of a trust who had not yet commended its activities. Therefore, impugned regular registration application as filed by the assessee in Form 10AB u/s 12A(1)(ac)(iii) was rejected by Ld. CIT(E). Aggrieved, the assessee is in further appeal before us.

The Ld. AR stated that as per amendment to Sec.12A w.e.f. 01- 10-2023, two separate provisions were created i.e., assessee which had not commenced the activities [Sec.12A(1)(ac)(vi)(A)] and the assessee who had already commenced its activities [(Sec.12A(1)(ac)(vi)(B)]. While seeking provisional registration, the assessee inadvertently selected Clause (A) instead of applicable Clause (B). The Ld. AR thus seeks consideration of application under correct clause as applicable to the assessee.

We find that the trust is an existing trust which has commenced its activities on 04-04-2008. The assessee’s return of income for AY 2010-11 was scrutinized u/s 143(3) vide assessment order dated 31- 10-2012 wherein the returned income of the assessee was accepted. In the new regime, the assessee applied for provisional registration on 03-01-2024 in Form No.10A clearly mentioning date of creation as 04- 04-2008. However, the assessee inadvertently selected clause (A) instead of applicable clause (B) of Sec.Sec. 12A(1)(ac)(vi) which has led to denial of regular registration to the assessee. Since the same was merely an inadvertent error and the assessee apparently fulfils all the other conditions to lay claim of regular registration, we set aside the impugned order and direct Ld. CIT(E) to consider the application of the assessee under relevant clause as applicable to the assessee. The assessee is directed to plead and prove its application.