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Facts
The assessee's application for registration u/s 12A(1)(ac)(iii) was rejected by the CIT(E) on the grounds of being delayed and not falling under the extended time specified in CBDT Circular No. 7 of 2024. The assessee argued that its earlier application was rejected for non-prosecution, not for ineligibility, and therefore, the current fresh application should be considered under the extended time limits provided by the circular.
Held
The Tribunal found that the assessee's previous application was indeed rejected for non-prosecution, meaning its eligibility for registration was not examined on merits. Therefore, the Tribunal held that the assessee was entitled to the benefit of the extended time for filing a fresh application under the CBDT Circular. The CIT(E) was directed to entertain the assessee's application and pass an order according to law after providing due opportunity of hearing.
Key Issues
Whether a fresh application for registration under Section 12A, filed after a prior rejection due to non-prosecution, is maintainable under the extended time limits provided by CBDT Circular No. 7 of 2024.
Sections Cited
12A(1)(ac)(iii), 12AB(1)(b)(ii)(B), 119, 10(23C), 12A(1)(ac), 80G(5), 35(1)
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Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: Shri Sanjay Garg & Ms. Annapurna Gupta
Shree Kuldevi Bahudha The CIT(Exemption), Mataji Devsthan Trust, Ahmedabad At & PO. Nayka Tal. Sami, Vs Dist. Patan, Gujarat-384245 PAN: AAFTS0999F (APPELLANT) (RESPONDENT) Assessee by: Shri Kunal Shangvi, A.R. Revenue by: Shri Rignesh Das, CIT-D.R. Date of hearing : 17-12-2025 Date of pronouncement : 25-02-2026 आदेश/ORDER
Per Annapurna Gupta, Accountant Member:
The present appeal has been filed by the Assessee against the order of the Ld. Commissioner of Income Tax (Exemptions), (hereinafter referred to as “Ld. CIT(E)”), Ahmedabad dated 16.12.2024, rejecting assessee’s application in Form 10AB seeking registration u/s. 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”).
The grounds raised by the assessee read as under:-
“(1) On the facts and in circumstances of the case as well as law on the subject, the Ld. Commissioner of Income Tax (Exemption) has erred in rejecting application for registration u/s. 12A of the IT Act. (2) On the facts and in circumstances of the case as well as law on the subject, the Ld. Commissioner of Income Tax (Exemption) has not provided Shree Kuldevi Bahudha Mataji Devsthan Trust A.Y. N.A. reasonable opportunity of being heard as provided under section 12AB(1)(b)(ii)(B) of the IT Act. (3) The appellant therefore prays that the registration u/s. 12A may be granted looking to the merits of the case. (4) The appellant humbly craves leave to add, alter or delete all or any of the ground(s) either before or in the course of hearing of the appeal.”
3. The order of the ld. CIT(E) reveals that he rejected assessee’s application noting that it was delayed and the assessee was not eligible for benefit of extended time given by CBDT .He noted that the assessee had earlier also filed an application which stood rejected vide order dated 26- 02-2024 and the said earlier rejection order was not covered by para 4.1 of CBDT Circular No. 7 of 2024 dated 25-04-2024 , so as to entitle the assessee to file a fresh application within the extended date provided by the said circular. The assesses application accordingly was held non- maintainable.
Before us, the ld. counsel for the assessee contended that the case of the assessee was not covered under para 4.1 of the Circular at all . His pleading was that the earlier application filed by the assessee was rejected for non-prosecution by the assessee and not on account of finding the assessee ineligible for grant of registration as per law. That therefore the present application was in fact a fresh application for which the benefit of extension of time by CBDT for filing the same was allowable.
5. Copy of the earlier order rejecting assesses application was placed before us at P.B 78-85 and also copy of the CBDT Circular No. 7 of 2024 dated 25-04-2024 extending time limit for filing applications for grant of registration u/s 12A of the Act to 30-06-24, at P.B 113-114.
The contents of the CBDT Circular are as under:-
“Sub: Extension of due date for filing of Form No. 10A/10AB under the Income-tax Act, 1961-reg Shree Kuldevi Bahudha Mataji Devsthan Trust A.Y. N.A. On consideration of difficulties reported by the taxpayers and other stakeholders in the electronic filing of Form No. 10A/10AB, the Central Board of Direct Taxes (the Board) in exercise of its powers under section 119 of the Income- tax Act, 1961 (the Act) extended the due date for filing Form No 10A to 31.08 2021 by Circular No. 12/2021 dated 25.06.2021 to 31.03.2022 by Circular No. 16-2021 dated 29.08.2021 to 25.11.2022 by Circular No. 22/2022 dated 01.11.2022 and further to 30.09.2023 by Circular No. 6/2023 dated 24.05.2023 and extended the due date for filing Form No 10A 30.09.2022 by Circular No. 8/2022 dated 31.03.2022 and further to 30.09.2023 by Circular No 6/2023 dated 24.05 2023 2. Representations have been received in the Board with a request to condone the delay in filing Form No. 10A/10AB, as the same could not he filed in such cases within the last extended date, i.e. 30.09.2023.
On consideration of the matter with a view to avoid and mitigate genuine hardship in such cases, the Board, in exercise of the powers conferred under section 119 of the Act, hereby extends the due date of making an application/ intimation electronically in- (i) Form No. 10A, in case of an application under clause (i) of the first proviso to clause (23C) of section 10 or under sub-clause (1) of clause (ac) of sub-section (1) of section 12A or under clause (i) of the first proviso to sub-section (5) of section 80G or in case of an intimation under fifth proviso of sub section (1) of section 35 of the Act till 30.06.2024; (ii) Form No. 10AB, in case of an application under clause (1) of the first proviso to clause (23C) of section 10 or under sub-clause (ii) of clause (ac) of sub-section (1) of section 12A or under clause (iii) of the first proviso to sub-section (5) of section 80G of the Act till 30.06.2024; 4. It may be also noted that extension of due date as mentioned in paragraph 3(ii) shall also apply in case of all pending applications under clause (iii) of the first proviso to clause (23C) of section 10 or sub-clause (iii) of clause (ac) of sub-section (1) of section 12A or under clause (iii) of the first proviso to sub-section (5) of section 80G of the Act as the case may be. Hence, in cases where any trust institution or fund has already made an application in Form No 10AB under the said provisions on or before the issuance of this Circular and where the Principal Commissioner or Commissioner has not passed an order before the issuance of this Circular the pending application in Form No. 10AB may be treated as a valid application. 4.1 Further, in cases where any trust, institution or fund has already made an application in Form No 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of this Circular solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code it may furnish a fresh application in Form No 10AB within the extended time provided in paragraph 3(ii) i.e. 30.06.2024.
It is also clarified that if any existing trust, institution or fund who had failed to file Form No 10A for AY 2022-23 within the due date as extended by the CBDT circular no. 6/2023 dated 24.05.2023 and subsequently applied for provisional registration as a new trust, institution or fund and has received Form No 10AC, it can avail the option to surrender the said Form No. 10AC and apply for registration for AY 2022- 23 as an existing trust, institution or fund in Form No. 10A within the extended time provided in paragraph (1) the 30.06.2024 6. Hindi version to follow.”
Shree Kuldevi Bahudha Mataji Devsthan Trust A.Y. N.A.
6.1 Undoubtedly the Circular extends the due date of filing Form 10AB/10A to the 30th June, 2024. Para 4 of the Circular clarifies that the extended time would apply even to those applications which were pending for approval on the date of the issuance of the Circular i.e. 24-05-2024 before the Pr. CIT(E) and who had not passed order on the same till then. Therefore, vide the said Circular all assessees were given an extended time for filing application in Form 10AB upto 30th June, 2024 and all applications filed upto to the said date or considered by the relevant authority for approval upto to the said date were to be treated as validly filed within the prescribed time limit.
6.2 Para 4.1 of the said Circular allows fresh applications to be filed within the extended time limit where the original application stood rejected in specified circumstances i.e. where the application was furnished after due date or the application had been furnished under the wrong section code.
6.3 The purport of para 4.1, it was contented by the Ld. Counsel for the assessee, was that the benefit of extension granted for filing applications seeking registration could not be availed by assesses whose applications had already been considered and rejected earlier. That only those applications which were rejected without examination, on account of being delayed or wrong section being quoted therein, could apply afresh within the extended period.
We are in agreement with the Ld. Counsel for the assessee. The CBDT clearly has extended time for filing applications seeking registration u/s 12A of the Act noting the difficulties faced by assesses in understanding and complying with the new provisions relating to registration of trusts u/s 12A of the Act applicable from 01-04-2021.The CBDT extended this benefit even to those assesses who had earlier filed applications but which were rejected on account of delayed filing or quoting of wrong section. Meaning Shree Kuldevi Bahudha Mataji Devsthan Trust A.Y. N.A. thereby which were rejected at the outset itself without examining the merits of the applicant. CBDT clearly allowed all applicants/ assesses extended time for filing applications to appointed Officers for examining their eligibility for grant of registration u/s 12A of the Act.
In the facts of the present case the assesses earlier application admittedly being rejected for non-prosecution, the assesses eligibility for grant of registration was not examined at all. And therefore, the assessee we hold, was eligible to the benefit of extended time given for filing application seeking registration u/s 12A of the Act. We agree with the Ld. Counsel for the assessee that the assesses case was not covered under para 4.1 of the CBDT Circular and the Ld. CIT(E) had erred in rejecting assesses application finding it covered under para 4.1 of the Circular.
We accordingly direct the Ld. CIT(E) to entertain assesses application seeking registration u/s 12A of the Act and pass order in accordance with law after giving due opportunity of hearing to the assessee.