TaxTMI 
TaxTMI 
2026 (9) TMI 1439
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....he Income Tax Act 1961 (hereinafter referred to as "the Act"). 2. On the facts and in the circumstances of the case in law, the CIT(E) erred in rejecting the application for conversion of provisional registration into final registration solely on the ground of delay in filing the application. 3. On the facts and in the circumstances of the case in law, the CIT(E) erred in rejecting the application for final registration without considering the condonation request submitted by the appellant. The order merely refers to CBDT extension circulars and concludes that the application was filed beyond the permissible time, without examining the reasons for delay or the merits of the condonation plea. The rejection is mechanical and overlooks the substantive compliance and bona fide conduct of the appellant in carrying out charitable activities. 4. On the facts and in the circumstances of the case in law, the CITE) has wrongly interpreted one of the objects in the Memorandum of Association (MOA) as permitting expenditure outside India despite written clarification during the proceedings clearly stating that it does not intend to spend any funds outside India. ....
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....nts. 5. After going through the same, the learned CIT(E) noticed that the assessee had obtained provisional registration in Form No. 10AC vide order dated 31.12.2021, having validity upto assessment year 2024-25. On the basis that the assessee should have filed the application in Form No. 10AB for regularisation of provisional registration latest by the end of the month of September 2023 and since the assessee has filed the application in Form No. 10AB on 20.03.2025, i.e., after a delay of more than eighteen months, the learned CIT(E) asked the assessee to show cause as to why the application be not rejected on the ground of delay of more than eighteen months. 6. During the hearing, the learned Authorised Representative ("learned AR") submitted that in response to the show cause notice issued by the learned CIT(E), the assessee filed an application seeking condonation of delay in filing Form No. 10AB submitting that the delay was purely inadvertent and unintentional, caused due to lack of awareness of newly introduced procedural requirement. From the perusal of the application for seeking condonation of delay, forming part of the paper book from pages 77-78, we find that the ....
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....0A(8) of the Act, which was under consideration before the Hon'ble Supreme Court in Wipro Ltd. (supra), we find that no such power has been granted to the Assessing Officer to condone the delay in furnishing the declaration, as required, beyond the due date for furnishing the return of income. Thus, we are of the considered view that in such circumstances, the Hon'ble Supreme Court in Wipro Ltd. (supra) held that the requirements of section 10A(8) of the Act are mandatory in nature. However, from a plain reading of the provisions of section 12A(1)(ac) of the Act, it is evident that the statute authorises the learned CIT(E) to condone the delay in filing Form No. 10AB upon being satisfied regarding the existence of reasonable cause for the delay. 11. In the present case, the provisional registration in Form No. 10AC was granted to the assessee on 31.12.2021, valid up to the assessment year 2024-25. Since as per the provisions of section 12A(1)(ac)(iii) of the Act, in case where the Trust or institution has been provisionally registered under section 12AB, the application for regularisation of provisional registration is required to be made by the assessee at least six months prio....
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....), we are of the considered view that the assessee has proved sufficient cause for not filing Form No. 10AB within the prescribed time before the learned CIT(E). Accordingly, we are of the considered view that the said delay should be condoned. 14. In the present case, the learned CIT(E) also rejected the application filed by the assessee in Form No. 10AB for seeking registration under section 12AB of the Act on the basis that the following clauses of the assessee's Memorandum of Association leave room for the potential violation of the provisions of section 11 of the Act: - "21. To enter into any arrangement with any Government authority whether municipal, local or otherwise or any person or Company that may seem conducive to the attainment of Company's objects or any of them and to obtain from any such Government or other authority, person or company any rights, privileges, charters, contracts, licenses and concessions which may be desirable for the Company to obtain, and to carry out, exercise and comply with the same. 22. To subscribe to become a member of and co-operate with any other association whether incorporated or not. whether located in India or....