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TMI Blog2023 (3) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... s appeal, the assessee has raised the following grounds: - "The appellant objects to the order dated 18 September 2022 in Form no. 10AD passed by CIT(Exemptions), rejecting the appellant's application for registration under section 12AB of the Act made under section code 12A(1)(ac)(iv) of the Act, on the following grounds which are without prejudice "1.1 The Learned CIT (Exemptions) erred in rejecting the appellant's application for registration under section 12AB of the Act. 1.2 The Learned CIT (Exemptions) failed to appreciate that since the appellant had received provisional approval under section 10(23C)(vi) in Form 10AC, the question of providing Form 10AC for registration under section 12AB did not arise. 1.3 The learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the registration under section 12A of the Act. In Revenue‟s appeal, the Hon‟ble jurisdictional High Court vide order dated 28/03/2018 confirmed the order passed by the Tribunal holding that the question proposed did not give rise to any substantial question of law as the Tribunal‟s order had only applied the decision of the Hon‟ble Bombay High Court in the case of DIT vs Samundra Institute of Maritime Studies Trust, (2014) 49 Taxmann.com 510 (Bombay). In the present case, there is no dispute that the registration granted to the assessee under section 12A of the Act is still continuing. 5. For its alternative claim of exemption under section 10(23C)(vi) of the Act, the assessee filed an application in accordance wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registration under section 10(23C) for the purpose of section 11(7) of the Act and the language of section 11(7) does not mention the term „provisional registration‟. 6. Before proceeding further, it is relevant to analyse the provisions of section 11(7) of the Act, which reads as under:- "Income from property held for charitable or religious purposes. 11(1) to (6) ....... (7) Where a trust or an institution has been granted registration [under section 12AA or section 12AB] or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996)] and the said registration is in force for any previous year, then, nothing contained in section 10 [other than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evious year, any sum has been claimed to have been applied by the trust or institution, such sum shall not be allowed as application in any subsequent previous year.] 7. Thus, as per 1st proviso to section 11(7) of the Act, where a trust has been granted registration, inter-alia, under section 12A such registration shall become inoperative from the date on which the trust is approved under section 10(23C) of the Act. As per 2nd proviso to aforesaid section, the trust whose registration has become inoperative may apply to get its registration operative subject to the condition that in doing so the approval granted under section 10(23C) of the Act shall cease to have any effect. As noted above, in the present case, the learned CIT(Exemptions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... infructuous. 8. During the hearing, it was submitted that the assessee had filed an application in Form 10A as per section 12A(1)(ac)(i) of the Act on 23/11/2022, and consequent thereto, registration in Form 10AC has been granted on 01/12/2022, as per section 12AB(1)(a) of the Act, for the period being assessment years 2022-23 to 2026-27. We may however clarify that our findings in the present appeal will not and cannot have any consequence, in case, the assessee at any time is found to be at fault for violation of any condition specified under the Act in respect of registration granted to it, in which case the Revenue can take appropriate action as per law. 9. In the result, the appeal by the assessee is dismissed. Order pronounced in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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