KANTIBHAI CHATURBHAI PATEL CHARITABLE TRUST,AHMEDABAD vs. THE CIT(EXEMPTION), AHMEDABAD

The brief facts of the case are that the assesseeis a Trust and it had applied for registration u/s.12A(1)(ac)(v)of the Act in Form No.10AB on 01.12.2023. Earlier, it was allowed provisional approval on 31.05.2021 for the A.Y. 2022-23 to 2026-27. The Ld. CIT(E) noted that the trust deed was updated [KantibhaiChaturbhai Patel Charitable Trust vs.CIT(E)]- 2 – to expand the objective of the charitable activities within the main objects of the Trust. The Trust had filed an application for approval of updated trust deed before the Charity Commissioner which was approved vide order dated 17.08.2023. As per provision of Section 12A(1)(ac)(v) of the Act, the assessee was required to make an application ‘within a period of thirty days from the date of said adoption or modification’, which expired in this case on 16.09.2023. However, the present application was filed by the assessee belatedly on 01.12.2023. The assessee had not applied toCBDT for condonation of delay in this regard. Therefore, the application filed by the assessee in Form 10AB u/s.12A(1)(ac)(v)of the Act was rejected by the Ld. CIT(E) vide the impugned order and the provisional registration granted earlier was also cancelled.

Aggrieved with the order of the Ld. CIT(E), the assessee is in appeal before us.The following grounds of appeal have been taken in this appeal:

On the facts and circumstances of the case and, in law, the CIT(E) erred in rejecting the application filed u/s 124(1)(ac)(v) on the limitation ground that the application has been filed beyond the prescribed time of 30 days from adoption or modification of amendment in object clause.

On the facts and circumstances of the case and, in law, the Ld. Commissioner of Income-tax (Exemption) ['the CIT(E)'] further erred in cancelling the provisional registration granted under section 12A of the Act. Without prejudice to Ground No.1, 2 & 3 above:

Shri S. N. Soparkar, Ld. Senior Counsel appearing for the assessee submitted that the application of the assessee was rejected for the reason that there was a slight delay in filing the present application. He explained that the Ld. CIT(E) had rejected the application for the reason that earlier the CIT(E) had no power to condone the delay in filing of the application. However, the provision of Section 12A(1)(ac) has been amended and the PCIT or the CIT has now been empowered to condone the delay w.e.f. 01.10.2024. The Ld. Counsel, therefore, requested that the matter may be set aside to the file of the Ld. CIT(E) with a direction to condone the delay and, thereafter, consider the application of the assessee.

Per contra,Shri A. P. Singh, the Ld. CIT. DR had no objection if the matter was set aside to the file of Ld. CIT(E), in view of the amended provisions of the Act.

We have considered the rival submissions. The Ld. CIT(E) had rejected the application for the reason that there was slight delay in filing of the present application. As per the finding given by the Ld. CIT(E), the assessee was required to file the present application by 16.09.2023, whereas the application was filed on 01.12.2023. At the relevant point of time, the Ld.

In the result, the appeal filed by the assessee isallowed for statistical purposes.