2024 (6) TMI 971 - AT - Income Tax

Charitable trust wins appeal after registration application wrongly rejected as premature under section 12AB

Susamskar Foundation Versus CIT (Exemption), Kolkata

Susamskar Foundation Versus CIT (Exemption), Kolkata - TMI Issues involved: Appeal against order u/s 12AB of the Income Tax Act, 1961 regarding rejection of registration u/s 12AB.The appeal was filed against the order passed u/s 12AB of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemption), Kolkata. The appeal was initially considered time-barred, but the delay was condoned after finding reasonable cause. The assessee, a Trust, applied for final registration under section 12A(1)(ac)(iii) of the Act, but the application was rejected by the CIT (Exemption) as premature since provisional registration was already granted till AY 2026-27. The assessee contended that the application for final registration was necessary despite provisional registration. The Tribunal noted that there was no bar on applying for final registration at the earliest possible event and set aside the order to consider the application for final registration. This decision was supported by precedents where similar issues were resolved in favor of the applicants, emphasizing the importance of timely consideration of final registration applications. The appeal was allowed for statistical purposes, directing the CIT (Exemption) to reevaluate the application for final registration in accordance with the law.In conclusion, the Tribunal ruled in favor of the assessee, highlighting the importance of timely consideration of final registration applications and setting aside the order to allow for proper assessment of the application for final registration under section 12AB of the Income Tax Act, 1961.