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TMI Blog2022 (5) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... a period of 5 years. However, in the present case, the assessee trust being registered under section 12AA and thus rightly made an application under section 12A(1)(ac)(i) of the Act, was granted Provisional Registration in Form 10 AC subject to certain conditions. It is pertinent to note that section 12AB(1)(c) deals with granting of Provisional Registration to the trust or institution for a period of 3 years from the assessment year from which registration is sought. The said section is applicable in cases where application is made under section 12A(1)(ac)(iv) of the Act. It is also not disputed that the Provisional Registration would be granted for a period of 3 years to the charitable institutions which are yet to start their activit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondents : B. K. Bagchi , Sr. AR ORDER Per Sandeep Singh Karhail , JM The present appeal has been filed by the assessee against the order for Provisional Registration dated 28.05.2021 passed by DIT (CPC) in Form 10AC. 2. In this appeal, the assessee has raised following grounds: 1. That appellant is entitled to Regular Registration for 5 years as mandated under section 12AB and DIT was wrong in granting only provisional registration to the appellant. 2. That conditions are imposed for registration u/s. 12AB are unwarranted, unjustified and without authority of law. 3. That the order passed for Registration is contrary to the provisions of the Act. 3. The only grievance of the assessee in present appeal is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons who are yet to commence their activities. 7. On the other hand, learned Departmental Representative vehemently relied upon the impugned order granting Provisional Registration. 8. We have considered the rival submissions and perused the material available on record. In order to decide the issue, it is relevant to analyse the relevant provisions of the Act applicable to the present case. Section 12A deals with conditions for applicability of section 11 and 12. Section 12A(1)(ac) of the Act reads as under: 12A. (1) The provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:-- (a) .. (aa) ... (ab) ... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stration, within a period of thirty days from the date of the said adoption or modification; (vi) in any other case, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said registration is sought, and such trust or institution is registered under section 12AB; 9. From the aforesaid provision, it is clear that for claiming the benefit under section 11 and section 12 of the Act, the trust or institution has to make an application for registration and such trust or institution should be registered under section 12AB of the Act. Section 12A(1)(ac)(i) of the Act specifically deals with the cases where trust or institution was registered under section 12A or under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) where the application is made under sub-clause (vi) of the said clause, pass an order in writing provisionally registering the trust or institution for a period of three years from the assessment year from which the registration is sought, and send a copy of such order to the trust or institution. 11. In the present case, it has not been disputed that the assessee trust was duly registered under section 12AA of the Act. Thus, the only provision applicable to the assessee trust for the purpose of applying for registration is section 12A(1)(ac)(i) of the Act. Further, section 12AB(1)(a) of the Act provides that where an application is made under section 12A(1)(ac)(i) the Principal Commissioner or Commissioner shall pass an o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orm 10AC was issued under section 12A(1)(ac)(i) of the Act, which provision merely deals with making an application for registration. 12. Thus, in view of the above, we are of the considered opinion that application filed by the assessee trust under section 12A(1)(ac)(i) was not properly considered for grant of registration under section 12AB of the Act. Accordingly, we direct the designated authority under section 12AB to de novo consider the application of the assessee trust under section 12A(1)(ac)(i) of the Act and grant the registration as per law. As a result, grounds raised by the assessee are allowed for statistical purpose. 13. In the result, appeal by the assessee is allowed for statistical purpose. Order pronounced in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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