Cartrade Foundation Vs CIT (ITAT Mumbai)
The assessee filed appeals against two orders dated 24.09.2025 and 22.10.2025 passed by the Commissioner of Income Tax (Exemptions), Mumbai, rejecting its applications for registration under Sections 12AB and 80G of the Income Tax Act, 1961.
The assessee had obtained provisional registration in Form No. 10AC on 31.12.2021, valid up to assessment year 2024–25. It filed an application in Form No. 10AB on 20.03.2025 seeking regularisation of this provisional registration. The Commissioner noted that the application should have been filed by the end of September 2023, and since it was filed after more than eighteen months, a show cause notice was issued proposing rejection on grounds of delay.
In response, the assessee submitted that the delay was inadvertent and unintentional, caused by lack of awareness of newly introduced procedural requirements and administrative oversight. It filed an application seeking condonation of delay and furnished required documents. The assessee also relied on CBDT Circular No. 7 of 2024, which extended the deadline for filing Form No. 10AB to 30.06.2024, thereby reducing the delay to approximately 8.5 months. However, the Commissioner rejected the application without considering the condonation request and treated the delay as fatal.
Before the Tribunal, the assessee reiterated that the delay was due to lack of awareness among trustees regarding amended provisions requiring timely filing for conversion of provisional registration into final registration. The Revenue argued that the timeline under Section 12A(1)(ac)(iii) was mandatory and relied on a Supreme Court decision.
