2024 (6) TMI 971 - AT - Income Tax

Non grant the benefit of permanent Registration u/s 12AB - CIT (Exemption) rejected the application of the assessee treating it as non- maintainable on the ground that the assessee has already been granted provisional registration which is valid till AY 2026-27, therefore, held that application of the assessee is premature - HELD THAT - We observe that the assessee is a charitable Trust registered u/s 12AA of the Act vide order u/s 12AA(1)(b)(i) of the Act effective from 01.05.2018 (AY 2018-19). Subsequent to the amendments brought in the Act by Finance Bill, 2020, there was a requirement of provisional registration as well as final registration for new as well as existing Institutions/Trusts. The assessee has been granted provisional registration up to AY 2026-27 and before the expiry of the period, the assessee has applied for final registration. However, ld. CIT (Exemption) has treated the said application as non-maintainable only on the ground for being premature and that the assessee has already been granted provisional registration valid till AY 2026-27. We therefore, hold that there is no bar in moving the application for final registration at the earliest possible. We accordingly, set aside the impugned order and restore the matter back to the file of ld. CIT (Exemption) to consider the application of the assessee for final registration and grant the same for if the same is admissible to the assessee as per the provisions of the Act. Accordingly, all the grounds of appeal raised by the assessee are allowed for statistical purposes.

Summary

Issues involved: Appeal against order u/s 12AB of the Income Tax Act, 1961 regarding rejection of registration u/s 12AB.

The appeal was filed against the order passed u/s 12AB of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemption), Kolkata. The appeal was initially considered time-barred, but the delay was condoned after finding reasonable cause. The assessee, a Trust, applied for final registration under section 12A(1)(ac)(iii) of the Act, but the application was rejected by the CIT (Exemption) as premature since provisional registration was already granted till AY 2026-27. The assessee contended that the application for final registration was necessary despite provisional registration. The Tribunal noted that there was no bar on applying for final registration at the earliest possible event and set aside the order to consider the application for final registration. This decision was supported by precedents where similar issues were resolved in favor of the applicants, emphasizing the importance of timely consideration of final registration applications. The appeal was allowed for statistical purposes, directing the CIT (Exemption) to reevaluate the application for final registration in accordance with the law.

In conclusion, the Tribunal ruled in favor of the assessee, highlighting the importance of timely consideration of final registration applications and setting aside the order to allow for proper assessment of the application for final registration under section 12AB of the Income Tax Act, 1961.