SHALOM HEALTH AND EDU STY,RAJAHMUNDRY vs. INCOME TAX OFFICER (EXEMPTION WARD), RAJAHMUNDRY
Facts
The assessee applied for regular registration under Section 12AB of the Income Tax Act after obtaining provisional registration. The application was filed on 27.09.2024, which was beyond the statutory time limit, even after an extension by CBDT Circular. Consequently, the CIT(E) rejected the application as time-barred.
Held
The Tribunal condoned the delay in filing the application for Section 12AB registration, acknowledging that the delay was due to circumstances beyond the assessee's control. It directed the CIT(E) to consider the application for registration on merits and pass orders in accordance with law.
Key Issues
Whether the delay in filing the application for Section 12AB registration should be condoned, and whether the CIT(E) erred in rejecting the application solely on the ground of being time-barred without considering its merits.
Sections Cited
12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM
Before: SHRI V. DURGA RAO, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
आदेश /O R D E R
PER V. DURGA RAO, JM: 1. The captioned appeal is filed by the assessee against order of the Learned Commissioner of Income Tax (Exemption), Hyderabad [hereinafter in short “Ld.CIT(E)”] vide DIN & Order No. ITBA/EXM/F/EXM45/2024- 25/1074450815(1) dated 13.03.2025.
I.T.A. No.259/VIZ/2025 Shalom Health And Edu Sty 2. Facts are in brief are that the assessee has filed e-Filing application in Form 10AB seeking Registration under section 12AB of the Income Tax Act, 1961 [hereinafter in short “the Act”]. The Ld. CIT(E) called the details from the assessee and assessee has filed all the details.
The Ld. CIT(E) has noted that on perusal of the submissions made by the assessee, it is observed that the CPC has issued provisional registration in Form 10AC dated 04.4.2022 valid from A.Y. 2022-23 to A.Y. 2024-25. As per Finance Act, 2020, assessee should have applied Form 10AB for regular registration under section 12AB of the Act, at least six months before the expiry of provisional registration or either within six months from the date of commencement of the activities, whichever is earlier. Further CBDT vide circular No. 7 of 2024 dated 25.04.2024 extended the time limit for filing of Form 10A/10AB till 30.06.2024. However, the assessee has applied Form 10AB for regular registration under section 12AB of the Act on 27.09.2024 beyond the time limit prescribed for filing of Form 10AB. By observing the above, Ld. CIT(E) rejected the registration under section 12AB of the Act.
On being aggrieved assessee carried the matter before the Tribunal and raised following grounds in its appeal: -. “1. The order of the learned Commissioner of Income Tax (Exemption), Hyderabad is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Commissioner of Income Tax (Exemption), Hyderabad is not justified in rejecting as time barred the application filed by the appellant in Form No.10AB seeking registration u/s 12AB of the Act. 3. Any other ground that may be urged at the time of appeal hearing.” Page No. 2
I.T.A. No.259/VIZ/2025 Shalom Health And Edu Sty 5. Before us, the Learned counsel for the assessee submitted that there is delay of nearly three months in filing the application before the Ld. CIT(E) and requested the same may be condoned and orders may be passed on merits.
On the other hand, Ld. DR supported the orders passed by the Ld. CIT(E)
We have heard both the sides and perused the record and gone through the orders of the revenue authorities. We find that Ld. CIT(E) rejected 12AB registration to the assessee on the ground that there is delay. Before us the Ld.Counsel for the assessee has explained that the delay in filing of the application before Ld. CIT(E) are due to circumstances beyond his control and submitted that delay may be condoned and direct the Ld. CIT(E) to pass the orders on merits. We find that it is a fit case to condone the delay, accordingly delay is condoned. In so far as the merits is concerned, we direct the Ld. CIT(E) to consider the issue on merits and grant registration under section 12AB of the Act in accordance with law.
In the result, appeal of the assessee is allowed for statistical purposes
Order pronounced in the open court on 17th June, 2025.
Sd/- Sd/- (िी. दुर्ाा राि) (एस बालाकृष्णन) (S. BALAKRISHNAN) (V. DURGA RAO) लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated : 17/06/2025 Giridhar, Sr.PS
Page No. 3
I.T.A. No.259/VIZ/2025 Shalom Health And Edu Sty
आदेशकीप्रतततलतपअग्रेतषत/ Copy of the order forwarded to :- 1. तिर्ााररती/ The Assessee : Shalom Health And Edu Sty 80-22-7, 4th Street Jayasree Gardens, Rajahmundry E.G. District – 533103 Andhra Pradesh
राजस्व/ The Revenue : Income Tax Officer (Exemption Ward) Income Tax Office Aayakar Bhavan, Kambala Cheruvu Veerabhadrapuram Rajahmundry – 533105 Andhra Pradesh 3. The Principal Commissioner of Income Tax 4. तिभागीयप्रतततितर्, आयकरअपीलीयअतर्करण, तिशाखापटणम/DR,ITAT, Visakhapatnam 5. The Commissioner of Income Tax 6. गार्ाफ़ाईल/ Guard file आदेशािुसार / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam
Page No. 4
