SAYAMA KELAVANI MANDAL,ANAND vs. THE CIT (EXEMPTION), AHMEDABAD

This appeal is filed by the applicant Trust against the order of the Commissioner of Income Tax (Exemption), Ahmedabad (in short ‘the CIT(E)’) dated 19.09.2023 rejecting the application for registration under Section 12A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

There was a delay of 193 days in filing of this appeal. An affidavit had been filed by the assessee explaining for the reason of delay. Considering the reason as explained, the delay is condoned. [Sayama Kelavani. Mandal vs. CIT(E)] - 2 –

The application for registration of the trust under Section 12A(1)(ac)(iii) of the Act was filed by the assessee in Form 10AB on 23.03.2023. The Ld. CIT(E) observed that the assessee had got provisional approval for the A.Ys. 2021-22 to 2023-24. He further observed that as per provision of Section 12AB of the Act, for granting registration, the Commissioner had to satisfy himself about the genuineness of the activities of the trust and also to verify that the activities were in consonance with the objects of the trust or institution. The assessee was, therefore, requested to submit certain details/documents vide notice dated 19.07.2023 and 19.08.2023 issued by the Ld. CIT(E), but, there was no response to these notices. Thereafter, the assessee was allowed final opportunity by the ld. CIT(E) vide notice dated 12.09.2023, but, once again, there was no compliance. The Ld. CIT(E), therefore, rejected the application of the trust for registration under Section 12A of the Act and provisional registration was also cancelled.

The Ld. AR submitted that the CBDT vide Circular No.7/2024 has extended the time limit for making application for registration under Section 12A(1)(ac)(iii) of the Act till 30.06.2024. Therefore, the present appeal may be set aside to the file of the Ld. CIT (E) for reconsideration of the matter. The Ld. AR submitted that the details as called for by the Ld. CIT(E) were not submitted by the assessee and for this reason the appeal requires to be set aside. [Sayama Kelavani. Mandal vs. CIT(E)] - 3 –

The Ld. CIT.DR relied upon the order of the Ld. CIT(E) and submitted that the appeal needs to be dismissed.

We have heard the rival submissions and perused the relevant materials available on record. It is pertinent to note that the CBDT vide recent Circular No. 7/2024, dated 25th April, 2024 has allowed another opportunity for making application in Form No.10AB for grant of registration under Section 12A(1)(ac)(iii) of the Act by extending the time limit for filing of such application till 30.06.2024. Therefore, the assessee has now option of filing new application for registration within the extended time limit. The present application was rejected for the reason that the documentary evidences in respect of genuineness of the activities of the trust and that the activities were in consonance with the objects of the trust were not filed before the Ld. CIT(E). For this reason alone the present appeal need not be set aside. The assessee may file such evidences or any other details as called for by the Ld. CIT(E) previously, along with the fresh application within the extended time limit of 30th June, 2024. The present appeal filed in respect of dismissal of application of the assessee made under Section 12A(1)(ac)(iii) of the Act has to be taken in consonance with the latest Circular No. 7/2024 issued by the CBDT dated 25th April, 2024. Since, the time limit for making application is extended till 30.06.2024, we, hereby, grant the liberty to the assessee to make appropriate application within the stipulated time limit issued by the CBDT along with the documents as called for earlier by the Ld. CIT(E) [Sayama Kelavani. Mandal vs. CIT(E)] - 4 – and, therefore, the present appeal is treated as infructuous and dismissed accordingly.

In the result, appeal preferred by the assessee is dismissed with liberty as mentioned in Para 6 of the order.