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Facts
The assessee filed an application for renewal of registration under section 12AB of the Income Tax Act. The CIT(E) rejected the application, stating it was filed belatedly beyond the specified time limit. The assessee appealed this rejection.
Held
The Tribunal noted that CBDT Circular No. 7/2024 extended the due date for filing Form 10AB till 30.06.2024. Based on this circular and a previous order on identical facts, the Tribunal decided to restore the matter to the CIT(E).
Key Issues
Whether the CIT(A) was justified in rejecting the assessee's application for renewal of registration under section 12AB for being filed belatedly, especially in light of a subsequent CBDT circular extending the due date.
Sections Cited
12AB, 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH : BANGALORE
Before: SHRI GEORGE GEORGE K & SHRI WASEEM AHMEDR
Per George George K, Vice President:
This appeal at the instance of the assessee is directed against CIT(E)’s order dated 02.04.2024. The solitary issued that is raised is whether CIT(A) is justified in rejecting the application made by the assessee Trust for renewal of registration under section 12AB of the Income Tax Act 1961 (hereinafter called ‘the Act’).
Brief facts of the case are as follows:
Assessee’s application in Form 10AB dated 03.11.2023 for renewal registration under section 12AB of the Act was rejected by the CIT(E) by observing as under :
“On receipt of application in Form No.10AB dated 03.11.2023 for registration u/s.12AB of the Income tax Act, 1961, the case was assigned to the Jurisdictional Assessing Officer for verification. The JAO issued letters/notices through official mail/post calling for the details/documents.
2. On perusal of the submissions, it is seen that Assessee has obtained registration u/s.12AB in Form No.10AC dated 24.09.2021 (Provisional A Y 2022-23 to 2024-2025). The present application is filed only on 03.11.2023, which is beyond the time limit specified under section 12A(1)(ac)(iii) of the Act. Thus, the application is filed belatedly.
3. The Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 is reproduced as under : “where the trust or institution has been provisionally registered u/s.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".
4. In view of the above, the application filed in Form No.10AB dated 03.11.2023 for registration u/s.12AB of the Act, is hereby rejected and registration cancelled”.
Aggrieved by the rejection of application dated 03.11.2023, assessee has filed the present appeal before the Tribunal. The learned AR submitted that CBDT vide Circular No.7/2024 dated 25.04.2024 had extended the due date of filing Form 10A/10AB till 30.06.2024. In this context, the learned AR relied on the Order of the Bangalore Bench of the Tribunal in the case of Samyata Foundation Vs. DCIT in (order dated 16.05.2024).
We have heard the rival submissions and perused the material on record. Assessee’s application for renewal of registration under section 12AB of the Act was rejected by the CIT(E) since Form 10AB was filed belatedly. We notice that CBDT vide Circular No.7/2024 dated 25.04.2024 had extended the due date for filing Form 10AB till 30.06.2024. The relevant portion of the said Circular at para 4.1 reads as follows:
“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.”
On identical facts, the Bangalore Bench of the Tribunal had restored the matter to the CIT(E) for fresh consideration. The relevant finding of the Bangalore Bench of the Tribunal in the case of Samyata Foundation Vs. DCIT (supra) reads as follows:
“3. We have heard the rival submissions and perused the materials available on record. The ld. A.R. submitted that there was a delay in filing the application for approval u/s 12AB of the Act. However, that delay was condoned by CBDT vide Circular No.7/2024 dated 25.4.2024, wherein specifically observed as follows:
“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.” 3.1 In view of this, we remit the entire issue in dispute to the file of ld. CIT (Exemptions) for fresh consideration to decide the same in accordance with law.”
In light of the aforesaid order of the Tribunal and the Board’s Circular, we restore the matter to the CIT(E) for consideration of application for registration.
In the result, appeal filed by the assessee is allowed for statistical purposes.