Ramtirth Godavari Seva Samiti Vs CIT (ITAT Pune)
Delay in Form 10AB Application for Section 12AB Registration Is Condonable—Matter Remanded
In Shri Ramtirth Godavari Seva Samiti v. CIT (Exemption), Pune (ITA No. 2602/PUN/2025), the ITAT Pune Bench examined rejection of an application for registration under Section 12AB on the ground of wrong clause selection and delay in filing Form 10AB.
The assessee trust had commenced activities in July 2023, obtained provisional registration in Form 10AC on 08.07.2024, and thereafter applied in Form 10AB. The CIT(E) rejected the application holding that, since activities had already commenced, the assessee ought to have applied under Section 12A(1)(ac)(vi)(B) within the prescribed time.
The Tribunal noted that:
- CBDT Circular No. 7/2024 dated 25.04.2024 acknowledged widespread errors in selecting the correct clause and granted relaxation.
- A new proviso to Section 12A(1)(ac) (effective 01.10.2024) expressly empowers the Commissioner to condone delay in filing applications where reasonable cause exists.
- The assessee’s delay was minor and bona fide, and the Commissioner ought to have considered condonation instead of outright rejection.
Decision & Directions:
- Order of CIT(E) set aside.
- Matter remanded to CIT(E) with a direction to condone the delay and decide the application afresh on merits, after granting reasonable opportunity to the assessee.
- Appeal allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
