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Facts
The assessee's application for regular registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961, was rejected by the National Faceless Appeal Centre (NFAC) solely on the ground of being time-barred, as it was filed beyond the prescribed due date.
Held
The Tribunal noted a new proviso to section 12A(1)(ac) empowering the Commissioner to condone delay for reasonable cause. Acknowledging the assessee's charitable activities and the new provision, the Tribunal found it appropriate to condone the delay and remitted the case back to the CIT (Exemption) for a fresh decision on merits.
Key Issues
Whether the application for regular registration under section 12A(1)(ac)(iii) could be rejected solely on the grounds of limitation, and if the delay in filing the application could be condoned under the provisions of the Income Tax Act.
Sections Cited
Section 12A(1)(ac)(iii), Section 12A(1)(ac), Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee is directed against the order dated 18.09.2025 framed by National Faceless Appeal Centre, Delhi (NFAC) denying the application for grant of regular registration u/s.12A(1)(ac)(iii) of the Income Tax Act, 1961 (in short ‘the Act’).
When the case called for, none appeared on behalf of the assessee. We therefore proceed to adjudicate the appeal exparte with the assistance of ld. Departmental Representative.
We have heard the ld. Departmental Representative and perused the record placed before us. On perusal of the grounds of appeal, we find that one of the grievance of the assessee is that ld.CIT(Exemption) has rejected the assessee’s application being barred by limitation. We observe that the assessee has filed application for regular registration on Form No.10AB u/s.12A(1)(ac)(iii) on 18.03.2025. One of the reasons for rejecting the assessee’s application is that the same being barred by limited as it was required to be filed on or before 30.06.2024 but the same has been furnished on 18.03.2025.
We observe that vide Finance No.2 Act, 2024 w.e.f. 01.10.2024 a proviso has been inserted to section 12A(1)(ac) which provides 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”. This indicates that ld.CIT (Exemption) is now empowered to condone such delay considering the facts of the case. We also observe that the assessee is carrying out charitable activities and has furnished all necessary details to prove the Identity of the Trustees, Notes on activities, Bank statements, Donation receipts, Audit reports and Details of tax deducted showing that the assessee is actively engaged in the charitable work and merely for such unintentional delay the assessee should not be denied the regular registration.
We therefore are of the considered opinion that it is a fit case to condone the delay. In view thereof and without dwelling into merits of the case, all the issues raised in the instant appeal are remitted to the file of ld.CIT (Exemption) for afresh adjudication on merits after affording reasonable opportunity to the assessee. Ld.CIT (Exemption) is directed to consider all the details/submissions to be filed by the assessee and then decide the issues in accordance with law. Assessee is directed to update latest email id and contact detail on ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and all the grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this 20th day of January, 2026.