9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 1227 - HC - Income TaxFresh registration u/s 12AB - Notice seeking cancellation of earlier registration u/s 12A / 12AA pursuance of search proceedings u/s 132 and assessment u/s 153C as on 10.8.2021 - applicability of overriding provisions of section 12AB w.e.f. 1.4.2021 - Online submission of application for fresh registration u/s 12AB as on 4.5.2021 - HELD THAT - under Sub-Clause (ac) of Clause (1) of Section 12A, the trust or institution registered under Section 12A or 12AA shall make an application within three months from the 1st April, 2021 in the prescribed form and manner to the Principal Commissioner/ Commissioner for registration of trust or institution. If any such application is made under Section 12A(1)(ac), how such application is to be dealt with has been provided under Section 12AB(1)(a), which has also been quoted hereinabove, where, on receipt of application submitted under Section 12A(1)(ac), the Principal Commissioner/Commissioner shall pass an order in writing registering the trust or institution for a period of five years. The procedure of cancellation of the registration already enjoyed either under 12A regime or 12AA regime in the case of the petitioner, in view of the new regime having been introduced, shall take place only after disposing the application made by the trust or institution, under the new regime, as contemplated under Section 12AB(1)(a). Since it is the claim of the petitioner that the application has been made only through online and for which, acknowledgment number has also been generated and it is also printed and the same has been filed by way of hard copies before this Court, we cannot doubt the application submitted by the petitioner on 04.05.2021. Assuming that such application submitted by the petitioner has not reached the concerned authority of the Income Tax Department for taking action, still the petitioner has got time to make such an application, because, the original period of three months with effect from 01.04.2021 as provided under the new regime has been subsequently, extended by the notification issued in this regard by Central Board of Direct Taxes, Department of revenue, dated 25.06.2021, under which, the time period has been extended upto 31st August, 2021. The objection raised by the petitioner side by pointing out the legal position, in view of the new regime introduced with effect from 01.04.2021 in the Finance Act, 2021, as against the impugned notice, is well found. This Court feels that, the impugned notice dated 10.08.2021 issued under Section 12AA(3) of the Act, as such, cannot be proceeded further and it can be kept in abeyance for the time being, till an order is passed by the Principal Commissioner/Commissioner as the case may be on the application of the petitioner dated 04.05.2021 under Section 12AB(1)(a) of the Act and once such an order is passed granting such registration for another terms of five years as referred to or contemplated under the new regime, then, it is open to the respondent revenue to proceed against the petitioner and therefore, from that stage, the impugned proceedings dated 10.08.2021 can be proceeded in accordance with law, especially under Sub-Section 4 of Section 12AB of the Act. Writ petition disposed of with necessary directions.
Issues Involved:
1. Jurisdiction of the respondent to issue notice under Section 12AA(3) post the introduction of Finance Act, 2021. 2. The impact of the new regime under Section 12AB on the existing registrations under Section 12A and 12AA. 3. The procedural requirements for fresh registration under Section 12AB. 4. The validity of the impugned notice issued under the old regime. Issue-wise Detailed Analysis: 1. Jurisdiction of the respondent to issue notice under Section 12AA(3) post the introduction of Finance Act, 2021: The petitioner argued that the respondent had no jurisdiction to issue the notice under Section 12AA(3) of the Income Tax Act, 1961, post the introduction of the Finance Act, 2021. The Finance Act, 2021, introduced Section 12AB, which provides a new procedure for the registration of trusts and charitable institutions, rendering the provisions under Section 12AA inapplicable from April 1, 2021. The court acknowledged that Section 12AA(5) clearly states, "Nothing contained in this Section shall apply on or after the 1st day of April 2021," thus making the provisions under Section 12AA redundant post the specified date. 2. The impact of the new regime under Section 12AB on the existing registrations under Section 12A and 12AA: The court examined the transition from the old regime (Section 12A and 12AA) to the new regime (Section 12AB). It was noted that trusts or institutions previously registered under Section 12A or 12AA must apply for fresh registration under Section 12AB within three months from April 1, 2021. The Principal Commissioner or Commissioner is mandated to pass an order in writing registering the trust or institution for a period of five years upon receipt of such application. The court emphasized that the new regime intended to streamline the registration process and ensure periodic renewal to avoid indefinite registration periods. 3. The procedural requirements for fresh registration under Section 12AB: The petitioner had submitted an application for fresh registration under Section 12AB on May 4, 2021. The court reviewed the procedural requirements under Section 12AB(1)(a), which mandates the Principal Commissioner or Commissioner to pass an order in writing registering the trust or institution for five years upon receipt of the application. The court directed that the application submitted by the petitioner must be processed, and an order granting registration must be passed before any punitive action, such as cancellation of registration, can be initiated under the new regime. 4. The validity of the impugned notice issued under the old regime: The court held that the impugned notice dated August 10, 2021, issued under Section 12AA(3), could not be proceeded with under the old regime, given the introduction of the new regime under Section 12AB. The court directed that the notice be kept in abeyance until the petitioner's application for fresh registration under Section 12AB is processed and an order is passed. The court clarified that once the fresh registration is granted, the respondent may proceed with any action under Sub-Sections (4) or (5) of Section 12AB if any violations are noticed. Conclusion: The court disposed of the writ petition with specific directions: - The impugned notice dated August 10, 2021, shall be kept in abeyance. - The petitioner's application dated May 4, 2021, for fresh registration under Section 12AB shall be processed, and an order granting registration for five years shall be passed. - Post-registration, the respondent may proceed with any action under Section 12AB(4) using the contents of the impugned notice. - The petitioner is permitted to submit a hard copy of the application to the concerned officer to resolve any controversy regarding the receipt of the application. The writ petition was disposed of with no costs, and the connected miscellaneous petitions were closed.
|
