Provisional Registration Alone Cannot Establish Activity Commencement: ITAT Mumbai

D Y Patil Innovation Foundation Vs CIT (Exemption) (ITAT Mumbai)

Summary: Both appeals were filed by D Y Patil Innovation Foundation against orders dated 29.03.2026 passed by the Commissioner of Income Tax (Exemption), Mumbai under Sections 12A and 80G of the Income Tax Act, 1961. The appeals concerned the validity of the assessee’s applications for regular registration under section 12AB and approval under section 80G. For convenience, ITA No. 7141/M/2026 was treated as the lead case and the decision was to apply mutatis mutandis to the connected appeal. The assessee, a trust whose activities were stated to relate to charitable purposes within the meaning of section 2(15), had obtained provisional registration in Form 10AC on 27.02.2024, valid from AY 2024-25 to AY 2026-27, and filed Form No. 10AB dated 27.09.2025 seeking regularisation under section 12A.

The CIT(E) considered that, under section 12A(1)(ac)(iii), the assessee should have applied by the end of August 2024, treating the date of provisional registration as the commencement of activities, and rejected the application as delayed by more than 12 months. Before the Tribunal, the assessee relied upon audited financial statements for FYs 2023-24 and 2024-25 and contended that no activities connected with its main charitable objects had commenced during FY 2023-24, apart from petty preliminary and administrative expenditure incurred for setting up the trust’s activities.