TaxTMI 
TaxTMI 
2026 (3) TMI 999
X X X X Extracts X X X X
X X X X Extracts X X X X
....eeking regular registration u/s.12AB of the Act. 2. There is a delay of '1035' days in filing of appeal (ITA No.2866/Chny/2025) against the impugned order of the CPC/PCIT(E); and there is a delay of '47' days in filing of appeal (ITA No.2865/Chny/2025) against the impugned order of the Ld.CIT(E) and the assessee has filed condonation application supported by Affidavit Sworn by the Secretary, Shri R.M. Veerappan, which contents states that the assessee Temple Trust is an old Trust, enjoying 12A registration from the year 1986; and the delay in filing of appeals were not intentional/deliberate. It was pointed out that it has been filing its ITR regularly claiming exemption u/s.12AA; and that Dr. MAM Ramasamy was the President of the assessee-society for a long time. But his demise on 02.12.2015 resulted in disputes (for becoming the office-bearers of assessee), which led to litigation [Civil Suit before the Hon'ble Madras High Court in CS No.37 of 2021, etc.] and only after the intervention of the Hon'ble Madras High Court, and appointment of Judge Commissioner, General Body was convened and elections were held and thus, he was elected as Secretary and finally, he has sworn the ib....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ay in filing of both the appeals. Per contra, Ld.DR doesn't want us to condone the delay and wants us to dismiss the appeals of the assessee Trust. 3. Having heard both the parties and after having going through the contents of the application/affidavit for condoning the delay and considering the facts stated supra, we note that the assessee is an old Trust registered u/s.12A of the Act in 1986 and is a Temple Trust; and due to the demise of the erstwhile President of the Temple, there were litigations/disputes which ultimately got settled by the intervention of the Hon'ble Madras High Court appointing a Judge Commissioner; and only after elections/general body, the assessee Trust was able to finalize the accounts after audit and then filed the appeals before this Tribunal with a delay of more than 1000 days [ITA No.2866/Chny/2025] which was filed after the legal advice that assessee being an old Trust was entitled for registration for five (5) years from AY 2022-23 onwards and not for provisional registration for three (3) years and therefore has preferred to file the appeal before this Tribunal with a delay of '1035' days. The other appeal [ITA No.2865/Chny/2025] is against th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the provisional registration 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; (vi) in any other case, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said registration is sought, and such trust or institution is registered under section 12AB;] 12AB. (1) The Principal Commissioner or Commissioner, on receipt of an application made under clause (ac) of sub-section (1) of section 12A, shall,- (a) where the application is made under sub-clause (i) of the said clause, pass an order in writing registering the trust or institution for a period of five yea....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ticed occurrence of one or more specified violations during any previous year; or (b) the Principal Commissioner or Commissioner has received a reference from the Assessing Officer under the second proviso to sub-section (3) of section 143 for any previous year; or (c) such case has been selected in accordance with the risk management strategy, formulated by the Board from time to time, for any previous year, the Principal Commissioner or Commissioner shall- (i) call for such documents or information from the trust or institution, or make such inquiry as he thinks necessary in order to satisfy himself about the occurrence or otherwise of any specified violation; (ii) pass an order in writing, cancelling the registration of such trust or institution, after affording a reasonable opportunity of being heard, for such previous year and all subsequent previous years, if he is satisfied that one or more specified violations have taken place; (iii) pass an order in writing, refusing to cancel the registration of such trust or institution, if he is not satisfied about the occurrence of one or more specified violations; (iv) for....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2021 i.e. within 30.06.2021 under sub- clause (i) of Sec.12A(1)(ac) and then, in such an event, it would have obtained registration automatically from CPC u/s.12AB(a) of the Act for five (5) years from AY 2022-23 to AY 2026-27. However, due to Covid pandemic, digital glitches, etc., several Institutions/Trusts could not e-file the application for registration and considering the genuine hardship faced by Trust/Institution, the CBDT had issued several Circulars extending the due date of filing from 30.06.2021 (applicable for old Trust enjoying 12A/12AA registration before TOLA 2020) to 31.03.2022 and then to 25.11.2022 [applicable also for registration u/s.10(23C), and 80G(5) of the Act] and ultimately extended up to 30.06.2024. 5. However, the present assessee applied initially on-line for registration on 07.10.2022, which was during the grey period (when there was no CBDT Circular extending time beyond 31.03.2022). Therefore, assessee couldn't file application under sub-clause (i) of Section 12A(1)(ac) which could have enabled the assessee Trust to get registration for five (5) years from AY 2022-23 to AY 2026-27; And since there was no CBDT Circular as on 07.10.2022 as noted ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....isplayed only clause (vi)], forcing the assessee to click clause (vi). Hence, considering the totality of facts, we do condone the delay and proceed to decide the appeal. 6. The main grievance of the assessee in ITA 2866/Chny/2025 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. 7. Brief facts are that the assessee is a Society, formed with the objects of constructing and maintaining the temple for worship of Sri Ayyappa Swamy, to conduct poojas, bajans and other forms of worship as stated in the MoA and bye-laws. According to the assessee, it obtained registration u/s.12AA of the Income Tax Act, 1961 (hereinafter "the Act") in the year 1986 from the Competent Authority vide order dated 13.05.1986 (refer Page Nos.80-82 of Paper Book), and that it had been regularly filing its Income Tax Returns claiming exemption u/s.11 of the Act. According to the assessee, as per new provisions u/s.12A(1)(ac) of the Act w.e.f.01.04.2021, the assessee trust in order to claim exemption u/s.11 of the Act had to obtain fresh registration u/s.12AB o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ranting provisional registration from AY 2023-24 to AY 2025-26), which resulted in assessee having no registration for AY 2022-23, which would jeopardize/create insurmountable problems for assessee Trust; And since, assessee had applied for registration well within the extended period of time allowed by the CBDT and taking note of the fact that the assessee is enjoying Sec.12AA registration from year 1986 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 be denied. 8. Per contra, the Ld.DR opposed the plea of the assessee and submitted that since, the assessee had wrongly filled up online portal of the Income Tax Department, CPC/PCIT(E) granted it provisional registration for three years and there is no mechanism to correct the system. 9. 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 1986 onwards, after the Parliament passed TOLA 2020 w.e.f.01.04.2021, had to apply for reregistration under sub....