Atmashreya Charitable Trust Vs CIT (Exemptions) (ITAT Mumbai)
Summary: The Mumbai Bench of the Income Tax Appellate Tribunal considered whether the Commissioner of Income-tax (Exemptions) was justified in rejecting Atmashreya Charitable Trust’s delayed Form No. 10AB application for regularisation of provisional registration under section 12AB of the Income-tax Act, 1961. The assessee had been granted provisional registration in Form No. 10AC on 27.05.2021, valid for Assessment Years 2021-22 to 2023-24. It subsequently filed Form No. 10AB on 30.07.2025. The CIT(E) treated the application as belated under section 12A(1)(ac)(iii). The assessee explained that although the provisional registration certificate mentioned a three-year period, it had bona fide believed that the registration was valid for five years and that no further application was required until expiry of that period. The CIT(E) rejected this explanation, holding that reasonable cause or genuine hardship had not been established.
The CIT(E) also referred to Circular No. 07/2024 dated 25.04.2024 and relied upon the Supreme Court decisions in PCIT vs. Wipro Ltd. and Commissioner of Customs vs. Dilip Kumar & Co. The Tribunal observed that section 12A(1)(ac) underwent a material statutory change with effect from 01.10.2024 through insertion of a proviso empowering the Principal Commissioner or Commissioner to condone delay where reasonable cause existed. Therefore, although the prescribed time limit continued to be statutory and mandatory, the Act itself now expressly recognised an exception through a specific condonation power.
