TaxTMI 
TaxTMI 
2025 (9) TMI 24
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....pugned order. In this regard, the assessee has filed a detailed application for condonation of delay accompanied by a duly notarised affidavit sworn by Shri Mitesh Kothari, trustee of the assessee-trust. In the said affidavit, it has been explained that the provisional registration under section 12AB was granted on 28.02.2023 and thereafter the application for final registration was filed on 01.06.2023. The same came to be rejected on 05.12.2023 on the ground that the trust had not commenced any activities and had not received any donations. The affidavit further states that the trust subsequently commenced its charitable activities in March 2024 and made attempts to file a fresh application in compliance with section 12A(1)(ac)(iii), but was unable to do so due to persistent technical issues on the e-filing portal, which did not permit uploading of the prescribed forms and generated repeated error messages. It has also been stated that the assessee filed its return of income for A.Y. 2024-25 along with Form 10BB audit report on 29.09.2024, thereby evidencing commencement of charitable activities. The appeal before the Tribunal was ultimately filed with a delay of 319 days, and the....
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....st, and supporting documentary evidence for the above. In response to the said notice, the assessee furnished its replies on 16.10.2023 and 17.10.2023. On perusal of the same, it was observed by the CIT(Exemption) that the assessee-trust had not commenced any charitable activity since its inception. The CIT(Exemption) also undertook an examination of the audited financial statements submitted by the assessee for the financial years 2019-20, 2020-21, 2021-22, and 2022-23, and recorded that the assessee had neither received any donation nor incurred any expenditure during these years towards the fulfilment of its stated charitable objects. It was thus inferred that the trust had remained inactive and dormant even during the period of provisional registration. The Commissioner further noted that as per section 12A(1)(ac)(iii), where a trust has been provisionally registered under section 12AB, it is required to apply for regular registration either within six months of commencement of its activities, or at least six months prior to the expiry of the period of provisional registration, whichever is earlier. Since the assessee had not commenced any activity at the time of filing of the ....
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....hese unsuccessful attempts was also placed on record. The AR placed reliance on some judicial precedents including the decision of Co-ordinate Bench in case of Susamskar Foundation v. CIT(E) - [2024] 160 taxmann.com 552 (Kolkata - Trib.). 9. Considering the facts the DR raised no objection in restoring the matter back to the file of CIT(E) for deciding the matter afresh. 10. We have considered the rival contentions, perused the material on record, and carefully examined the relevant provisions of the Act as well as the judicial precedent relied upon by the assessee. The issue for adjudication in the present appeal pertains to the rejection of the application for regular registration under section 12AB(1)(b), filed by the assessee on 01.06.2023 in Form No. 10AB. The CIT(Exemption) rejected the application vide order dated 05.12.2023, treating the same as "premature" on the ground that the assessee had not commenced its activities or received any donations as on the date of application, and therefore, the conditions of section 12A(1)(ac)(iii) were allegedly not fulfilled. 11. It is not in dispute that the assessee had been granted provisional registration under section 12AB ....
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....ntainable only on the ground for being premature and that the assessee has already been granted provisional registration valid till AY 2026-27. 8. We find that under the similar set of facts and circumstances, this Tribunal in the case of Ramkrishna Mandal Institute of Education vs. CIT (Exemption) in ITA No. 924/KOL/2023 order dated 20.02.2024 in which one of the co-signatory is the author of this order and the issue has been examined and decided in the following manner: "3. We have heard the rival contentions and gone through the record. The assessee- institution has been granted registration u/s 12AB(l)(a) of the Act for five years vide order dated 28.05.2021 which is valid from A.Y 2022-23 to A.Y 2026-27. As per the provisions of section 12A(l)(ac)(iii) of the Act, the assessee-institution is supposed to apply for final registration after grant of provisional registration u/s 12AB of the Act. The relevant part of the provisions of section 12A(l)(ac) of the Act is reproduced 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, n....
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....nd grant the same for if the same is admissible to the assessee as per the provisions of the Act. Accordingly, all the grounds of appeal raised by the assessee are allowed for statistical purposes. 12. In the present case, the rejection of the application as "non- maintainable" due to the absence of activity at the time of application is not in accordance with the legislative intent of section 12A(1)(ac)(iii) read with section 12AB(1)(b). The provision merely prescribes the outer time limit by which the application for regular registration must be made - either within six months of commencement of activities, or six months prior to expiry of provisional registration, whichever is earlier. There is no prohibition against filing the application at an earlier point of time once provisional registration is in place. Moreover, once the assessee has commenced its activities and submitted audited financials evidencing such commencement, and there is no adverse finding recorded on the genuineness of the trust or its charitable objects, we are of the considered opinion that the rejection solely on procedural ground is not sustainable in law. 13. We also note that the CIT(Exemption) di....