TaxTMI 
TaxTMI 
2024 (5) TMI 1603
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....ve enjoyed Sec.12AA registration in perpetuity, but for the amendment which was brought in the law by the Taxation and Other Laws (Relaxation and Amendment of certain Provisions) Act, 2020 (hereinafter in short 'TOLA, 2020') w.e.f.01.04.2021. And by virtue of TOLA, 2020, [assessee had to apply for re-registration under the Act] amendments were brought in the provisions relating to the eligibility/procedure of registration u/s.12A/12AA of the Act, sec.10(23C), sec.80G of the Act. At present, we are concerned with the procedure to apply for re-registration brought in Sec.12A(1)(ac) and sec.12AB of the Act and the relevant provisions 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 institu....
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....n as are material for the purpose of achieving its objects; (ii)after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A) and compliance of the requirements under item (B), of sub-clause (i),- (A)pass an order in writing registering the trust or institution for a period of five years; or (B)if he is not so satisfied, pass an order in writing rejecting such application and also cancelling its registration after affording a reasonable opportunity of being heard; (c)where the application is made under sub-clause (vi) of the said clause, pass an order in writing provisionally registering the trust or institution for a period of three years from the assessment year from which the registration is sought, and send a copy of such order to the trust or institution. (2)All applications, pending before the Principal Commissioner or Commissioner on which no order has been passed under clause (b) of sub-section (1) of section 12AA before the date on which this section has come into force, shall be deemed to be applications made under sub-clause (vi) of clause (ac) of sub-secti....
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....siness which is not incidental to the attainment of its objectives or separate books of account are not maintained by such trust or institution in respect of the business which is incidental to the attainment of its objectives; or (c)the trust or institution has applied any part of its income from the property held under a trust for private religious purposes, which does not enure for the benefit of the public; or (d)the trust or institution established for charitable purpose created or established after the commencement of this Act, has applied any part of its income for the benefit of any particular religious community or caste; or (e)any activity being carried out by the trust or institution-(i)is not genuine; or(ii)is not being carried out in accordance with all or any of the conditions subject to which it was registered; or (f)the trust or institution has not complied with the requirement of any other law, as referred to in item (B) of sub-clause (i) of clause (b) of sub-section (1), and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred, has either not been disputed or has attained finalit....
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....reak from AY 2021-22 onwards) got jeopardized and it lost registration for AY 2022-23; immediately on realizing this mistake of filing Form 10 as stated above, it approached the Tribunal by filing appeal before this Tribunal and thus, there was a delay of '374' days which was the cause of delay, which we find to be reasonable for condoning because, assessee was legally entitled for re-registration u/s.12AB(a) for five years had it applied online by clicking on sub clause (i) instead of sub-clause (vi) of sec.12A(1) of the Act; and we do condone the delay and proceed to decide the appeal. 5. The main grievance of the assesse is against the action of the Ld.CIT/CPC granting provisional registration for only three years (for AYs 2023-24 to 2025-26) rather than granting registration for five years from AY 2022-23 onwards. 6. Brief facts are that the assessee is a trust which provides relief to the poor and runs home for old age people and take care of orphaned children. According to the assessee, it obtained registration u/s.12AA of the Income Tax Act, 1961 (hereinafter "the Act") on 21.10.1994 from the Director of Income Tax (Exemptions), Madurai, and that it had been regularly ....
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....m year 1994 onwards and eligible as per law to claim registration for five assessment years u/s.12AB of the Act, the claim of assessee should not denied. 7. Per contra, the Ld.DR opposed the plea of the assesse and submitted that since, the assessee had wrongly filled up online portal of the Income Tax Department, CPC/ Ld.PCIT(E) granted it provisional registration for three years and there is no mechanism to correct the system. 8. We have heard both the parties and perused the material available on record. The facts afore-stated being not disputed, it is not repeated for sake of brevity. The assessee being an old Trust which enjoyed registration u/s.12AA of the Act, from year 1994 onwards, after the Parliament passed TOLA 2020 w.e.f.01.04.2021, had to apply for re-registration under sub-clause (i) of Clause (1) of Sec.12A of the Act, whereas, it inadvertently applied under sub-clause (vi) of this provision and because of which, it was granted provisional registration u/s.12AB(1)(c) for three (3) years from AY 2023-24 onwards; and because of this action, the assessee lost its registration u/s.12AB of the Act for AY 2022-23 and was denied exemption u/s.11 of the Act, for that ....