SHRIMAND RAJCHANDRA GYANMANDIR TRUST,KHEDA vs. THE CIT (EXEMPTION), AHMEDABAD

The brief facts of the case is that the assessee is a Trust commenced charitable activities as early as 19-07-1979. The 2 Assessee Trust was provided Provisional registration in Form 10AC on 19-10-2024 and within six months thereafter filed the Assesssee Trust filed application for final registration in Form 10AB u/s. 12A(1)(ac)(iii) of the Act on 01-03-2025. 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 before us raising the following Grounds of Appeal:

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:

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:

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- 5 trust filed application in Form No.10AB on 01-03-2024 for final registration under section 12A(1)(ac)(iii) of the Act, but within six months of granting Provisional registration in Form 10AC dated 19- 10-2024. 7. We find that the assessee trust is an old trust existing from 19-07-1979 and duly registered u/s 12A of the Act. We find that the Ld.CIT(E) has dismissed the application seeking final registration u/s 12AB as barred by limitation invoking the second limb of section 12A(l)(ac)(iii) of the Act. Given that it is a case of an existing trust carrying out its activities as evident from its application and not a case of new trust, the second limb of 12A(1) (ac)(iii) doesn't apply in the instant case. This view is upheld by the co-ordinate Bench of Mumbai Tribunal in the case of M/s. Debabrata Auro Foundation [cited supra]. Further Kolkata Bench of the Tribunal in the case of Ramkrishna Mandal Institute of Education -Vs- CIT[E] in ITA No. 924/Kol/2023 dated 20-02-2024 wherein it is held as follows:

We have heard the rival contentions and gone through the record. The assessee-institution has been granted registration u/s 12AB(l)(a) of the Act for five years vide order dated 28.05.2021 which is valid from A.Y 2022-23 to A.Y 2026-27. As per the provisions of section 12A(1)(ac)(iii) of the Act, the assessee-institution is supposed to apply for final registration after grant of provisional registration u/s 12AB of the Act. The relevant part of the provisions of section 12A(1)(ac) of the Act is reproduced as under: "12A(1) The provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely [(ac) notwithstanding any contained in clauses (a) to (ab), the person in receipt of the income has made an application in the prescribed form and manner to the 6 Principal Commissioner or Commissioner, for registration of the trust or institution, - (iii) where the trust or institution has been provisionally registered under section 12AB, at least six months prior to expiry of period of the provisional registration or within six months of commencement of its activities, whichever is earlier; . . . .and such trust or institution is registered under section 12AB."

A perusal of the aforesaid provisions of section 12A(1)(ac)(iii) of the Act would reveal that where the trust or the institution was provisionally registered u/s. 12AB of the act, the application for final registration can be made at least six months prior to the expiry of the period of provisional registration or within six months of the commencement of its activity, whichever is earlier, which means that the application for final registration has to be made at the earliest possible event i.e. either within six months of the commencement of the activities or at least six months prior to the expiry of the provisional registration. The aforesaid provision does not mean that there is any bar on the applicant to move an application before the period of six months from the expiry of the provisional registration. What has been provided is that the application must be made before the expiry of six months from the date of expiry of final registration. There is no bar in moving the application at the earliest possible event, rather, i.e. it is expected from the assessee-trust to do so. In view of this, the impugned order of the ld. CIT(Exemptions) is set aside and the matter is restored to the ld. CIT(Exemptions) to consider the application of the assessee for final registration and grant the same if the same is otherwise so admissible to the assessee."

In this case Provisional registration in Form 10AC was granted on 19-10-2024 by Ld CIT[E] and thereafter the assessee- trust filed application in Form No.10AB on 01-03-2024 for final registration under section 12A(1)(ac)(iii) of the Act, which is within six months of granting Provisional registration. In the light of the same, we set-aside the findings of the Ld.CIT(E) where assessee's application has been rejected on account of limitation and the matter is remitted to the file of the Ld.CIT(E) to admit the 7 Order pronounced in the open court on 28 -01-2026 (NARENDRA PRASAD SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBERJUDICIAL MEMBER Ahmedabad : Dated 28/01/2026