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Facts
The assessee, Yuva Gau Sewak Welfare Society, registered under the Societies Registration Act, obtained provisional registration u/s 12A(1)(ac)(iii) and commenced charitable activities. Its application for permanent registration was rejected by the CIT(E) on grounds that activities started before provisional registration, making it invalid, and due to insufficient documentary evidence. The assessee contended a lack of proper opportunity to be heard and highlighted the CIT/PCIT's power to condone delays in registration applications.
Held
The Tribunal noted the extensive powers vested in the PCIT/CIT under Section 12AB and the proviso to Section 12A(1)(ac)(vi) to condone delays in filing applications for registration, including those for converting provisional to regular registration. Therefore, the matter was remanded back to the CIT(E) for fresh consideration of the application, with a direction for the assessee to file a necessary condonation application.
Key Issues
Whether the CIT(E) was justified in rejecting the application for permanent registration u/s 12A(1)(ac)(iii) without an adequate opportunity of being heard, especially given the statutory powers to condone delays in such applications.
Sections Cited
Section 12A, Section 12A(1)(ac)(iii), Section 12A(1)(ac)(vi), Section 12AB
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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
This appeal is filed by the assessee against the order of the ld. CIT(E), Chandigarh dated 17.01.2025 rejecting the application for registration u/s 12A(1)(ac)(iii) of the Act, 1961 filed on 04.07.2024.
Brief facts of the case are that the assessee is a society registered ‘under the 2. Societies Registration Act’ 1860 (as amended by the Punjab Amendment Act, 1957), Assessment Year: N. A. with the primary object to provide care shelter for medical treatment of cows including establishment of Charitable Hospital. The society received its first donation on 27th September, 2023 and commenced its activities, and provisional registration was obtained u/s 12A(1)(ac)(iii) on 31st December, 2023.
Thereafter, the society applied for permanent registration u/s 12A(1)(ac)(iii) on 4th of July, 2024, which has been rejected by the ld. CIT(A) primarily on the grounds that the assessee has already commenced his business activities when it applied for provisional registration, and in this case the provisional registration could not have been granted because activity of the trust has already commenced.
In course of hearing, the ld. AR of the assessee submitted that the rejection of the application for registration is not legally justified because the assessee was not provided an opportunity of being heard before the rejection of its registration application because no show cause notice has been issued to the assessee to explain his case and to prove the genuineness of the activities through various documentary evidences including photographs and newspaper cuttings.
The ld. AR further submitted that as per provisions of section 12A, the ld. Commissioner or Principal Commissioner of Income Tax has got the power to condone the delay in filing the application, if reasonable cause is shown to exist for late filing registration may please be condoned.
The ld. CIT(E) has also pointed out to the insufficiency of documentary evidences to assess the genuineness of activities.
The ld. DR relied on the order of the ld. CIT(E) but has no objection if the matter is re-examined by the ld. CIT(E).
We have heard the rival submissions and considered the materials on record and we find that under the provisions of section 12AB trusts or institutions seeking registration or renewal has to comply within the time limit specified u/s 12A(1)(ac)(iii).
Now, by insertion of the proviso w.e.f. 01.10.2024 in section 12A(1)(ac)(vi) empowers the ld. PCIT/CIT to condone the delay in filing applications and treat such applications as timely filed provided reasonable cause for the delay is shown. The powers of condonation are extensive and applies to delays beyond the time allowed in sub-clause (i) to (vi) of section 12A(1)(ac)(iii). This condonation application also entitles an assessee to file an application in cases where there has been delay in converting the provisional registration to regular registration under clause 12A(1)(ac)(iii).
Commissioner of Income Tax and the Commissioner of Income Tax, we deem it fit and proper in the instant case to remand the matter back to the files of the ld. CIT(E) to consider the application for registration afresh and we also direct the assessee to move necessary condonation application before appropriate authority as per provisions of section 12AB of the Act, 1961.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 26.09.2025