2022 (5) TMI 768

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....lant is entitled to Regular Registration for 5 years as mandated under section 12AB and DIT was wrong in granting only provisional registration to the appellant. 2. That conditions are imposed for registration u/s. 12AB are unwarranted, unjustified and without authority of law. 3. That the order passed for Registration is contrary to the provisions of the Act." 3. The only grievance of the assessee in present appeal is against grant of Provisional Registration instead of Regular Registration under section 12AB of the Income Tax Act, 1961 ("the Act"). 4. The brief facts of the case are: The assessee is a Public Charitable Trust registered under Bombay Public Trust Act, bearing Registration No. E 25619 (Mumbai). The as....

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...., it is relevant to analyse the relevant provisions of the Act applicable to the present case. Section 12A deals with conditions for applicability of section 11 and 12. Section 12A(1)(ac) of the Act reads as under: "12A. (1) The provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:-- (a) .. (aa) ... (ab) ... (ac) notwithstanding anything contained in clauses (a) to (ab), the person in receipt of the income has made an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for registration of the trust or institution,-- (i) where the trust or....

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....ht, and such trust or institution is registered under section 12AB;" 9. From the aforesaid provision, it is clear that for claiming the benefit under section 11 and section 12 of the Act, the trust or institution has to make an application for registration and such trust or institution should be registered under section 12AB of the Act. Section 12A(1)(ac)(i) of the Act specifically deals with the cases where trust or institution was registered under section 12A or under section 12AA. 10. Further, section 12AB of the Act deals with procedure for fresh registration. Section 12AB(1) of the Act reads as under: "12AB. (1) The Principal Commissioner or Commissioner, on receipt of an application made under clause (ac) of su....

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....ich the registration is sought, and send a copy of such order to the trust or institution." 11. In the present case, it has not been disputed that the assessee trust was duly registered under section 12AA of the Act. Thus, the only provision applicable to the assessee trust for the purpose of applying for registration is section 12A(1)(ac)(i) of the Act. Further, section 12AB(1)(a) of the Act provides that where an application is made under section 12A(1)(ac)(i) the Principal Commissioner or Commissioner shall pass an order in writing registering the trust or institution for a period of 5 years. However, in the present case, the assessee trust being registered under section 12AA and thus rightly made an application under section....