Loading judgment…
Facts
The assessee, a charitable trust, applied for final registration under section 12AB and approval under section 80G of the Income Tax Act. The CIT(E) denied both applications, asserting that the Form 10AB for 12AB registration was filed belatedly, beyond the extended deadline of June 30, 2024, and without sufficient explanation for the delay. The denial of 80G approval was a consequence of the 12AB denial.
Held
The Tribunal condoned the 17-day delay in filing the appeals. It observed that the assessee was not afforded adequate opportunity to explain the delay in filing the Form 10AB application. Therefore, both the appeals were set aside to the file of the CIT(E) with a directive to grant the assessee another opportunity of hearing to present its case for registration under sections 12AB and 80G.
Key Issues
Whether the CIT(E) was justified in rejecting the applications for registration under Section 12AB and approval under Section 80G on grounds of belated filing, without condoning the delay or providing sufficient opportunity of hearing.
Sections Cited
Section 12AB, Section 80G, Section 12A(1)(ac), Section 12A(1)(ac)(iii), Section 12AB(1)(b)(ii)(B), Section 80G(5), Section 11(7), Section 10(23C)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: DR. BRR Kumar & Shri T. R. Senthil Kumar
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: DR. BRR Kumar, Vice President And Shri T. R. Senthil Kumar, Judicial Member
ITA No: 2520 & 2521/Ahd/2025
Chimanlal Modi Charitable CIT (Exemption), Trust Ahmedabad 40, Shrinathji Residency, Vs Patan Road, Mehsana Gujarat-384170 PAN: AADTC0026F (Respondent) (Appellant) Assessee Represented: None Revenue Represented: Shri Rignesh Das, CIT-DR Date of hearing : 05-03-2026 Date of pronouncement : 10-03-2026 आदेश/ORDER PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER
These two appeal are filed by the Assessee as against separate orders both dated 10.09.2025 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 12AB and under section 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on the ground that the application in Form 10AB was not filed within the time limit prescribed under the Act.
I.T.A No. 2520 & 2521/Ahd/2025 2 Chimanlal Modi Charitable Trust Vs. CIT(E)
The registry has noted that there is a delay of 17 days in filing the above appeals. Considering the submission of the assessee, the delay of 17 days in filing both the appeals are hereby condoned.
The brief facts of the case is that the assessee is a Trust commenced charitable activities as early as 19-07-1979 and Provisional registration in Form 10AC on 12-05-2022 for the Asst. Years 2023-24 & 2025-26. Assesssee Trust filed application for final registration in Form 10AB u/s. 12A(1)(ac)(iii) of the Act on 27-03-2025. Ld CIT[E] held that the Assessee Trust was required to file registration application in Form 10AB on or before six months from the date of commencement of the activities, which was further extended by CBDT Circular No. 7 of 2024 up to 30-06- 2024 but the assessee trust had not filed any reason for delay in filing such application. Therefore Ld. CIT(E) denied the registration by observing that the application is filed belatedly.
Aggrieved against the same the Assessee Trust is in appeal in ITA No. 2520/Ahd/2025 before us raising the following Grounds of Appeal: 1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has erred in rejecting application for registration u/s 12A(1)(ac)(iii) of the Act by not condoning delay in filing application in Form 10AB. 2. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has not provided reasonable opportunity of being heard as provided under Second Proviso to Section 12AB(1)(b)(ii)(B) of the Act. 3. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has hurriedly rejected the claim of assessee without giving further opportunity by pointing out specific deficiency. 4. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.
I.T.A No. 2520 & 2521/Ahd/2025 3 Chimanlal Modi Charitable Trust Vs. CIT(E)
None appeared on behalf of the Assessee. Ld. CIT-DR has no objection in setting-aside the impugned orders to the file of Ld. CIT(E).
We have perused the materials available on record. We find that the assessee trust is an existing trust and yet to commence its education activities.
6.1. Section 12A(1)(ac) was introduced by the Finance Act, 2020, and became effective from 1st April 2021. It provides for mandatory re-registration or fresh registration for trusts and institutions under certain conditions. This provision replaced the earlier system of permanent registration with a renewable registration regime for every five years. It mandates a Trust to apply in prescribed circumstances for:
New registration (first-time applicant), Provisional registration (for new entities), Re-registration (due to modification or expiry), Fresh registration (due to missed deadlines, etc.).
6.2. For better understanding the clauses (i) to (vi) of section 12A(1)(ac) of the Act, which are applicable to various categories of Trust are tabulated as follows:
Time Limit for Filing Type of Clause When to Apply Form Application Registration Trust or institution already registered under section On or before 30.06.2021 (later 10A Fresh registration (i) 12A/12AA and wants to migrate to extended via circulars) valid for 5 years new regime (ii) Trust already registered u/s 12AB At least 6 months before expiry 10AB Renewal for 5 years
I.T.A No. 2520 & 2521/Ahd/2025 4 Chimanlal Modi Charitable Trust Vs. CIT(E)
Time Limit for Filing Type of Clause When to Apply Form Application Registration and its registration is due for of current registration renewal At least 6 months before expiry Trust/institution that has provisional of provisional regn or within 6 10AB Final registration (iii) registration and is applying for months of commencement of for 5 years regular registration activity, whichever is earlier Trust has modified its objects (not Within 30 days from adoption or 10AB Fresh registration (iv) in conformity with existing modification of the objects for 5 years registration conditions) At least 1 month prior to Trust not previously registered and Provisional commencement of the previous (v) applies before commencement of 10A registration for 3 year relevant to the assessment charitable activities years year Trust not previously registered and Provisional Within the financial year in applies after commencement of 10A registration for 3 (vi) which activities commenced activities years Trust/institution whose registration became inoperative under Section Before expiry of the approved 10A Provisional/Fresh (via) 11(7) (due to 10(23C) approval) and period under Section 10(23C) or registration now applies again under Section immediately thereafter 12A
6.3. As per clause (iii) of section 12A(1)(ac) of the Act, the assessee-trust should make application for regular registration within six months before expiry of the provisional registration or six months of commencement of the activity whichever is earlier. However, this time limit has been extended till 30-06-2024 vide CBDT Circular No.7/2024 dated 25-04-2024. Thus, the assessee- trust filed application in Form No.10AB on 27-03-2025 for final registration under section 12A(1)(ac)(iii) of the Act, but after six months of granting Provisional registration in Form 10AC, as the assessee trust not commenced its activities.
We also find that the assessee was given two opportunities of hearing on 15-04-2025 and 02-07-2025 wherein partial submission made by the assessee trust before Ld. CIT(E). Therefore
I.T.A No. 2520 & 2521/Ahd/2025 5 Chimanlal Modi Charitable Trust Vs. CIT(E)
in the interest of justice, we deem it fit to set-aside the matter back to the file of CIT(E) to give one more opportunity of hearing to the assessee trust to explain its case for registration u/s. 12AB of the Act.
In the result, the appeal filed by the assessee in ITA No. 2520/Ahd/2025 is treated as allowed for statistical purpose.
ITA No. 2521/Ahd/2025
The Grounds of Appeal raised by the assessee are as follows: 1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has erred in rejecting application for approval u/s 80G(5) of the Act. 2. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has not provided reasonable opportunity of being heard as provided under Second Provisionally to Section 80G (ii)(b)(B) of the Act. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.
Ld. CIT(E) denied registration u/s. 80G(5) of the Act since final registration u/s. 12AB was also denied to the assessee Trust. Since the assessee’s appeal in ITA No. 2520/Ahd/2025 is already set- aside to the file of Ld. CIT(E), this appeal also set-aside to the file of Ld. CIT(E) with the direction to give one more opportunity of hearing to the assessee to explain its case for registration u/s. 80G of the Act.
I.T.A No. 2520 & 2521/Ahd/2025 6 Chimanlal Modi Charitable Trust Vs. CIT(E) 11. In the result, the appeal filed by the assessee in ITA No. 2521/Ahd/2025 is treated as allowed for statistical purpose.
Order pronounced in the open court on 10-03-2026
Sd/- Sd/- (DR. BRR KUMAR) (T.R. SENTHIL KUMAR) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad : Dated 10/03/2026 True Copy आदेश क� �ितिल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलीय अिधकरण, अहमदाबाद