TaxTMI 
TaxTMI 
2026 (9) TMI 1158
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.... for regularisation of its provisional registration under section 12AB of the Income-tax Act, 1961 ['the Act'] came to be rejected on the ground of delay. 2. Briefly stated, the assessee was granted provisional registration in Form No. 10AC vide order dated 27.05.2021, valid for Assessment Years 2021-22 to 2023-24. The assessee thereafter filed Form No. 10AB on 30.07.2025 seeking regularisation of the provisional registration. The learned CIT(E) noticed that, having regard to the provisions of section 12A(1)(ac)(iii) of the Act, the application ought to have been filed within the prescribed period. The application was, therefore, treated as belated. 2.1 In response to the show-cause notice, the assessee explained that, although the pr....
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....tion." 4. Upon consideration of the foregoing submissions advanced by the applicant, it is evident that the applicant-trust/institution has exhibited a casual and indifferent approach towards its statutory obligations under the Income Tax Act. Further, the applicant has failed to demonstrate any reasonable cause for the delay, nor has it been able to establish the existence of any genuine hardship faced by the applicant-trust/institution in filing the application within the prescribed due date. The statutory time limit for seeking regularisation of provisional registration is unambiguously laid down under section 12A(1)(ac)(iii) of the Act. Accordingly, the explanation furnished is found to be unsatisfactory and insufficie....
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....equirements. 4.4 Reliance is also placed on the judgement of Hon'ble Supreme court in case of Commissioner of Customs vs. Dilip Kumar & Co. (2018) 9 SCC 1, where it was held that exemption notifications must be read strictly, and the person claiming the exemption has to clearly prove eligibility. It was also held that if there is ambiguity about the scope of an exemption, the benefit of such ambiguity will go to the Revenue and not to the assessee. 5. In view of the foregoing discussion, it is noted that registration under section 12AB is to be granted in terms of the provisions of section 12AB(1)(b) of the Act after being satisfied about the objects of the trust or institution, the genuineness of activities, and the compl....
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.... 4.1 Section 12A(1)(ac) prescribes the time within which an application for registration is required to be furnished. In the case of an institution provisionally registered under section 12AB, clause (iii) requires the application to be made at least six months prior to expiry of the period of provisional registration or within six months of commencement of activities, whichever is earlier. The requirement of filing the application within the prescribed period is thus undoubtedly statutory. 4.2 However, the statutory scheme underwent a material change with effect from 01.10.2024, when a proviso was inserted in section 12A(1)(ac), empowering the Principal Commissioner or Commissioner to condone the delay where he is satisfied that there....
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....t whether the explanation furnished by the assessee constitutes reasonable cause within the meaning of the proviso to section 12A(1)(ac). 4.5 Examining the explanation on that touchstone, we find that the assessee was granted provisional registration on 27.05.2021. The assessee admittedly proceeded on the understanding that the provisional registration would continue for the period perceived by it to be applicable and that no immediate application for regularisation was required. Though such understanding cannot be regarded as a correct appreciation of the statutory requirement, the explanation, viewed in the peculiar facts of the case, cannot be characterised as inherently implausible or actuated by any deliberate disregard of the law. ....