2025 (11) TMI 1824

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....ect of the approval under section 80G(5)(iii) of the Act, respectively. 2. Brief facts of the case are that the assessee had filed an application in form No.10AB for approval of the Trust under section 12A(1)(ac)(vi) of the Act. The ld. CIT(E) had made certain inquiries and found that the eligibility condition for approval of the trust under section 12A(1)(ac)(vi) of the Act was not fulfilled. Therefore, he had rejected the application of the assessee for registration u/s 12A(1)(ac)(vi)(B) of the Act. Further, since the registration under section 12A of the Act was a mandatory condition for approval under section 80G(5)(iii) of the Act, the application filed by the assessee under section 80G(5) was also rejected. 3. Aggrieved by the o....

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....tion 11 of the Act in the Asst. Years 2019-20 to 2024-25. He, however, submitted that the case of the assessee was not covered in any of the other sub-clauses of section 12A(1)(ac) of the Act. He, therefore, requested that the matter may be remanded to the ld. CIT(E) with a direction to allow registration of the Trust under the suitable sub-clause. 5. Per contra, Shri R.P. Rastogi, CIT-DR submitted that the ld. CIT(E) had rightly rejected the application of the assessee made under section 12A(1)(ac)(vi)(B) of the Act, as the condition stipulated therein was not fulfilled. 6. We have considered the rival submissions. It will be relevant to reproduce the provisions of section 12A(1)(ac) of the Act for the sake of clarity on the issue. ....

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....of the provisional registration 87[or provisional approval, as the case may be,] or within six months of commencement of its activities, whichever is earlier; (iv) where registration of the trust or institution has become inoperative due to the first proviso to sub-section (7) of section 11, at least six months prior to the commencement of the assessment year from which the said registration is sought to be made operative; (v) where the trust or institution has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, within a period of thirty days from the date of the said adoption or modification; ^88[(vi) in any other case, where activities of the trust or instit....

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....f the sub-clauses (i) to (vi). Since the assessee has been provisionally registered under section 12AB of the Act, it is eligible to make an application under section 12A(1)(ac)(iii) of the Act. But the application under this sub-clause is required to be made within the period of six months prior to the expiry of period of provisional registration or within six months from the commencement of the activities, whichever is earlier. The contention of the assessee is that the period of six months from the commencement of activities had already expired, which was earlier than grant of provisional registration, and, therefore, it was not eligible for making application under this sub-clause as well. In fact, this sub-clause makes the grant of reg....