Final registration under section 12A is maintainable at the earliest stage; rejection as premature was unsustainable.

An application for final registration under section 12A(1)(ac)(iii) is not barred merely because provisional registration is still in force, where it is filed at the earliest permissible stage under the statutory timeline. The provision fixes the outer limit for filing final registration in Form 10AB, but does not make an application premature simply because the provisional period has not expired. Rejection solely on that ground was therefore unsustainable, the order was set aside, and the matter was restored for fresh consideration and grant of registration if otherwise admissible.

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Issues: Whether an application for final registration under section 12A(1)(ac)(iii) of the Income-tax Act, 1961 is maintainable before the expiry of the provisional registration period, and whether rejection of such application as premature is sustainable.

Analysis: The assessee had already been granted provisional registration and thereafter applied for final registration in Form 10AB. The statutory scheme of section 12A(1)(ac)(iii) requires an application for final registration at least six months before expiry of provisional registration or within six months of commencement of activities, whichever is earlier. That provision fixes the outer timeline for filing and does not bar an application made at the earliest available stage. The rejection of the application as non-maintainable solely on the ground that provisional registration was still in force was therefore unsustainable.

Conclusion: The application for final registration was maintainable, the rejection order was set aside, and the matter was restored to the Commissioner of Income Tax (Exemption) for fresh consideration and grant of registration if otherwise admissible. The appeal succeeded for statistical purposes.

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