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Facts
The assessee is an old trust registered under section 12A since 1979. It received provisional registration in Form 10AC on 19-10-2024 and applied for final registration in Form 10AB on 01-03-2025. The CIT (Exemption) denied final registration, holding the application belated under section 12A(1)(ac)(iii), despite it being filed within six months of provisional registration, as per extended timelines by CBDT Circular No. 7 of 2024.
Held
The Tribunal ruled that the assessee, being an old trust, is not subject to the 'commencement of activities' limb of section 12A(1)(ac)(iii). It noted that the application was filed within six months of provisional registration. The tribunal set aside the CIT(E)'s order and remitted the matter back for a decision on merits, granting the assessee a reasonable opportunity of hearing.
Key Issues
Whether an existing trust's application for final registration under section 12A(1)(ac)(iii) was belated, and if the 'commencement of activities' timeline applies to old trusts, thereby warranting a denial of registration.
Sections Cited
12AB, 12A(1)(ac)(iii), 12A, 12AA, 11, 12, 11(7), 10(23C)
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Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha
Shrimand Rajchandra CIT (Exemption), Gyanmandir Trust Ahmedabad Bhadhani, Patled Vs Kheda-388410, Gujarat, India PAN: AAATS8737L (Appellant) (Respondent) Assessee Represented: Shri Mehul K. Patel, Advocate Revenue Represented: Shri Sher Singh, CIT-DR Date of hearing : 22-01-2026 Date of pronouncement : 28-01-2026 आदेश/ORDER PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER This appeal is filed by the Assessee as against order dated 26.09.2025 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 12AB 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.
The brief facts of the case is that the assessee is a Trust commenced charitable activities as early as 19-07-1979. The 2 Shrimand Rajchandra Gyanmandir Trust Vs. CIT(E)
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:
1. That on facts and in law, the learned CIT[Exemption] has grievously erred in not granting sufficient and reasonable opportunity of hearing and in rejecting the application for registration u/s. 12A[1][ac][iii] of the Act as filed late and not maintainable.
2. That on facts and in law, the application made u/s. 12A[1][ac][iii] of the Act ought to have been granted by learned CIT [Exemption] as prayed for.
3. The appellant craves liberty to add, alter, amend any grounds of appeal.
4. Ld. Counsel appearing for the assessee submitted that this very same issue was considered by Mumbai Bench of this Tribunal in the case of M/s. Debabrata Auro Foundation -Vs- CIT(E) in dated 12-01-2026. Therefore Ld. CIT(E) is 3 Shrimand Rajchandra Gyanmandir Trust Vs. CIT(E) not correct in holding that the application for final registration is filed belatedly even after the extended period by CBDT Circular No. 7 of 2024 up to 30-06-2024 or before six months from the date of commencement of the activities, therefore Ld Counsel requested to set-aside the impugned order and give one more opportunity of hearing by Ld. CIT(E) for granting registration.
Per contra Ld. CIT-DR appearing for the Revenue supported the order passed by Ld. CIT(E).
Heard rival submissions and perused the material available on record. We find that the assessee trust is an old trust existing from 19-07-1979 and duly registered u/s.12A of the Act.
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.). 4 Shrimand Rajchandra Gyanmandir Trust Vs. CIT(E)
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 On or before 30.06.2021 (later registered under section 10A Fresh registration (i) 12A/12AA and wants to migrate to extended via circulars) valid for 5 years new regime Trust already registered u/s 12AB At least 6 months before expiry (ii) and its registration is due for 10AB Renewal for 5 years 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 in conformity with existing (iv) 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 (vi) applies after commencement of 10A registration for 3 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- 5 Shrimand Rajchandra Gyanmandir Trust Vs. CIT(E) 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.
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 dated 20-02-2024 wherein it is held as follows:
3. 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 Shrimand Rajchandra Gyanmandir Trust Vs. CIT(E)
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." 7.1. 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 Shrimand Rajchandra Gyanmandir Trust Vs. CIT(E) application and decide the same on merits after providing reasonable opportunity to the assessee trust.
In the result, the appeal filed by the assessee is treated as allowed for statistical purpose.