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Facts
M/s. Star Light Foundation applied for registration under section 12AB of the Income Tax Act, 1961, on 28.09.2023. This fresh application followed a previous rejection on 30.10.2022 of an application for regularization of provisional registration under section 12A due to non-submission of documents. The Ld. Commissioner rejected the fresh application, deeming it not maintainable under circular No. 06/2023, despite the Assessee's claim that it was within the extended limitation period by CBDT circulars No. 6/2023 and No. 07/2024.
Held
The Tribunal observed that the Assessee's application filed on 28.09.2023 was indeed within the extended limitation period as per CBDT circular No. 07/2024. Consequently, the impugned order rejecting the application was set aside, and the case was remanded to the Ld. Commissioner for a fresh decision on merits after providing a reasonable opportunity of being heard to the Assessee.
Key Issues
Whether the Assessee's application for registration under section 12AB was filed within the extended limitation period; and whether the Commissioner's rejection of the application as not maintainable was correct.
Sections Cited
12AA, 12AB, 12A
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Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI GAGAN GOYAL
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Assessee against the order dated 05.03.2024, impugned herein, passed by the Ld. Commissioner of Income Tax (Exemptions) (in short Ld. Commissioner) under section 12AA/12AB of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2023-24.
M/s. Star Light Foundation 2. The Assessee, being a society, by filing an application on 28.09.2023 in form 10AB of the Act sought registration u/s 12AB of the Act before the Ld. Commissioner. On perusing the material available on record the Ld. Commissioner observed that the Assessee has already filed application in form 10AB for regularization of the provisional registration u/s 12A on 15.04.2022 which was rejected vide order dated 30.10.2022 for non submission of the required documents in the prescribed time. Further, the Assessee has filed fresh application in form 10AB when the window of e-filing the application was opened for the trusts which have not filed applications within six months of the activities or six months before the expiry of the provisional registration. The Ld. Commissioner by giving reason, “the filing of the fresh application is not under circular No.06/2023 dated 24.05.2023, hence this application in form 10AB is not maintainable. In the conclusion this application for grant of registration stands rejected”.
The Assessee, being aggrieved, is in appeal before us and at the outset drew our attention to the provisional registration u/s 12A of the Act dated 24.02.2022. The Assessee further drew our attention to the CBDT circular No.6/2023 with regard to the clarification qua charitable religious trust by which the time for filing fresh application in form 10AB was extended up to 30.09.2023 and therefore by Circular no 07/2024 extended upto 30-06-2024. Therefore, the Assessee has claimed that the application in form 10AB filed by the Assessee on 28.09.2023 is within the limitation period as extended by the CBIDT vide circular (supra).
The Ld. D.R. did not refute the said fact.
Hence, considering the peculiar facts and circumstances in totality, as the Assessee has filed the relevant application in form 10AB on 28.09.2023, admittedly within the limitation period as extended by the CBDT (supra) vide circular no. 07/2024, hence impugned order is set aside and the case is remanded to the file of the Ld. Commissioner for decision afresh on merits suffice to say by affording reasonable opportunity of being heard to the Assessee.
Order pronounced in the open court on 23.09.2024.