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TMI Blog2025 (1) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... guarantees inter-alia that equals to be treated equally and therefore, a different treatment cannot be given to assessee-Trust, which will tantamount to discrimination.
Inadvertent mistake of the assessee clicking online for fresh registration under clause (iii) of sec.12(1)(ac) needs to be intervened and rectified; therefore, the assessee's application for registration under sub-clause (iii) needs to be treated as if assessee has applied under clause (i) of sec.12A(1)(ac) and granted registration u/s. 12AB(a) for five assessment years from AY 2022-23 onwards.
Restore the assessee's application for registration back to the file of the Ld.CIT(E) and direct him to process the application filed by assessee on 08-11-2023 in Form 10 as if filed u/s. 12A(1)(ac)(i). Appeal filed by the assessee is allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... .06.2019, it again applied for registration u/s. 12A(1)(ab) of the Act which was granted on 08.11.2023 [after the Tribunal order on 22.06.2022, wherein the Tribunal had set aside the first round rejection order passed by the Ld.CIT(E) on 09.01.2020 back to his file for deciding again the registration]. According to the Ld.AR, the Ld.CIT(E) granted registration u/s. 12AA of the Act from the date of application filed by the assessee on 04.07.2019 i.e., from AY 2020-21 onwards, which means the assessee was enjoying the registration u/s. 12AA of the Act during the old regime, viz before the new regime came into force after Taxation and Other Laws (Relaxation and Amendment of certain Provisions) Act, 2020 (hereinafter in short 'TOLA, 2020') w.e.f.01.04.2021. According to Ld AR, by virtue of TOLA, 2020, the assessee had to apply for re-registration under the Act since amendments were brought in the provisions relating to the eligibility/procedure of registration u/s. 12A/12AA of the Act, sec.10(23C), sec.80G of the Act. And since in the present case, the assessee is concerned with the procedure to apply for re-registration brought in Sec.12A(1)(ac) and sec.12AB of the Act, the Ld AR drew ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on for a period of five years; (b) where the application is made under sub-clause (ii) or sub-clause (iii) or sub-clause (iv) or sub-clause (v) of the said clause,-- (i) call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about-- (A) the genuineness of activities of the trust or institution; and (B) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects; (ii) after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A) and compliance of the requirements under item (B), of sub-clause (i),-- (A) pass an order in writing registering the trust or institution for a period of five years; or (B) if he is not so satisfied, pass an order in writing rejecting such application and also cancelling its registration after affording a reasonable opportunity of being heard; (c) where the application is made under sub-clause (vi) of the said clause, pass an order in writing provisionally registering the trust or institutio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trust or institution. Explanation.--For the purposes of this sub-section, the following shall mean "specified violation",-- (a) where any income derived from property held under trust, wholly or in part for charitable or religious purposes, has been applied, other than for the objects of the trust or institution; or (b) the trust or institution has income from profits and gains of business which is not incidental to the attainment of its objectives or separate books of account are not maintained by such trust or institution in respect of the business which is incidental to the attainment of its objectives; or (c) the trust or institution has applied any part of its income from the property held under a trust for private religious purposes, which does not enure for the benefit of the public; or (d) the trust or institution established for charitable purpose created or established after the commencement of this Act, has applied any part of its income for the benefit of any particular religious community or caste; or (e) any activity being carried out by the trust or institution--(i)is not genuine; or(ii)is not being carried out in accordance with all or any of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stration, had interestingly granted registration u/s 12AA to the assessee by order dated 08.11.2023 from AY 2020-21 onwards. Therefore, according to Ld AR, the Ld CIT(E) has not applied his mind while passing the impugned order on 17.05.2024, when he has granted the same albeit u/s 12AA [old regime] by order dated 08.11.2023 with retrospective effect from date of application in year 2019. Therefore, on this score itself the impugned action is bad in law. 8. And the Ld AR explained about the inadvertent mistake which happened while filling up online Form 10A on 08.11.2023, instead of clicking under sub clause (i), it inadvertently clicked sub-clause (iii) of sec.12A(1)(ac) of the Act; (i.e., renewal) and the Ld.CIT(E) rejected the application; whereas assessee being a Trust enjoying Sec.12AA of the Act from year 2005 and then again from AY 2020-21 onwards was qualified/eligible to apply under sub-clause (i) of Clause (ac) of sec.12A(1) of the Act and in such an event, if it had applied correctly under sub-clause (i), then, it would have got registration u/s. 12AB(1)(a) of the Act, for five years i.e. from AY 2022-23 onwards; and the assessee would not have faced the problem of reje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In this case, the assessee by virtue of order of Ld.CIT(E) albeit dated 08.11.2023 was enjoying registration u/s. 12AA of the Act after enquiry (refer page 111 to 116 of the paper book) from AY 2020-21 onwards until it was rejected by Ld.CIT(E) vide the impugned order dated 17.05.2024, which action of Ld CIT(E) cannot be countenanced, being not in consonance with the new scheme of registration after TOLA-2020. The assessee-Trust being an old trust (before TOLA came into force) was legally entitled for registration u/s. 12AB(1)(a) for five (5) years; and because of inadvertent mistake of filling up for renewal under sub-clause (iii) instead of sub clause (i), the assessee's right for re-registration u/s. 12AB of the Act for AY 2022-23 onwards cannot be denied, which action would offend Article 14 of the Constitution of India, which guarantees inter-alia that equals to be treated equally and therefore, a different treatment cannot be given to assessee-Trust, which will tantamount to discrimination. Therefore, we are of the considered opinion that the inadvertent mistake of the assessee clicking online for fresh registration under clause (iii) of sec.12(1)(ac) needs to be intervened a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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