TaxTMI 
TaxTMI 
2026 (9) TMI 1618
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....f the Income Tax Act, 1961 (for brevity 'the Act'), date of both the orders 29.03.2026. 2. Both the appeals pertain to the same assessee and arising out from validity of application of registration under Section 12A and 80G of the Act. For sake of convenience ITA No. 7141/M/2026 is taken as lead case and the decision rendered therein shall be applied mutatis mutandis to other appeal. ITA No. 7141/MUM/2026 3. The brief facts of the case are that the assessee is a trust and its activities are related to charitable purpose within the meaning under Section 2(15) of the Act. The assessee filed the application in Form No. 10AB dated 27.09.2025 under Section 12A of the Act for seeking regularization of provisional registration under Secti....
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....owever, the trust has filed present application (Form 10AB) for regularization of provisional registration Order u/s 12A on 27.09.2025 i.e. after delay of more than 12 months, which is not valid as per the above provision as the application is filed beyond permissible time limit." The said application was duly rejected. The aggrieved assessee filed an appeal before us by challenging the order of Ld. CIT(E). 4. The Ld. AR argued and filed a paper book comprising pages 1 to 63, which has been placed on record. The Ld. AR contended that the Ld. CIT(E) had rejected the assessee's application on the ground that the assessee had not applied for registration within six months after due commencement of activities. The assessee is liable f....
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..../religious activity, evidenced typically by the first donation/expenditure incurred towards a charitable object. Mere formation of the trust, opening a bank account, or obtaining PAN/provisional registration is treated as preparatory, not commencement. The date of commencement of activity is not defined under the Act, but it is generally taken as the date when the first donation/expense on the charitable object was incurred, and this is distinct from the date of provisional registration, since that registration can be obtained before commencement of activity. Provisional registration can be, and often is, obtained before any activity begins as it is fast-track and activity-agnostic. Provisional registration is not proof of, and does not fix....
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....not be equated with actual commencement of the charitable activities of the trust. In support thereof, the assessee has placed on record the audited financial statements for FYs 2023-24 and 2024-25, along with the corresponding returns of income, which are placed at APB pages 22 to 42. 9. We find that the expression "commencement of its activities" occurring in section 12A(1)(ac)(iii) requires examination with reference to the actual activities undertaken by the trust and the material available on record. The mere date of grant of provisional registration cannot, by itself and without verification of the underlying facts, be treated as conclusive evidence of the date of commencement of the charitable activities. The assessee has specific....
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.... for registration. 12. Since the appeal concerning approval under section 80G arises in the case of the same assessee and involves the connected factual issue concerning its charitable activities, the impugned order relating to the application under section 80G is also set aside and the matter is restored to the file of the Ld. CIT(E) for fresh adjudication in accordance with law after considering the material furnished by the assessee and after granting a reasonable opportunity of being heard. We refrain from expressing any view on the merits of the assessee's claim for approval under section 80G. 13. In the result, the appeal of the assessee bearing ITA No. 7139 & 7141/Mum/2026 are allowed for statistical purposes. Order pron....