TMI Blog2023 (3) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... provisional approval under section 10(23C) identical to approval u/s 10(23C) for the purpose of section 11(7) - Therefore, in view of the above, once the 1st proviso to section 11(7) is not triggered there is no question of the registration granted under section 12A of the Act becoming inoperative. Since there is no dispute regarding the fact that the assessee is still holding registration under section 12A of the Act, therefore, the issue of the validity of rejection of assessee's application u/s 12A(1)(ac)(iv) of the Act becomes solely academic in the facts of the present case.The grounds raised by the assessee are rendered academic in nature and therefore, are dismissed as infructuous. During the hearing, it was submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ejudice 1.1 The Learned CIT (Exemptions) erred in rejecting the appellant's application for registration under section 12AB of the Act. 1.2 The Learned CIT (Exemptions) failed to appreciate that since the appellant had received provisional approval under section 10(23C)(vi) in Form 10AC, the question of providing Form 10AC for registration under section 12AB did not arise. 1.3 The learned CIT (Exemptions) erred in holding that Institute has not filed form 10A for grant of registration under section 12AB of the Act. 1:4 The learned CIT(Exemptions) erred in considering the application for registration under section 12AB made in Form 10AB as invalid. 1.5 The learned CIT (Exemptions) erred in issuing the letter dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decision of the Hon‟ble Bombay High Court in the case of DIT vs Samundra Institute of Maritime Studies Trust, (2014) 49 Taxmann.com 510 (Bombay). In the present case, there is no dispute that the registration granted to the assessee under section 12A of the Act is still continuing. 5. For its alternative claim of exemption under section 10(23C)(vi) of the Act, the assessee filed an application in accordance with 1st proviso to the said section seeking approval from the assessment year 2020-21. As per the amended provisions for registration/approval for charitable institutions effective from 01/04/2021, since the application for approval under section 10(23C)(vi) was pending as on 31/03/2021, the assessee received a provisional ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held for charitable or religious purposes. 11(1) to (6) ....... (7) Where a trust or an institution has been granted registration [under section 12AA or section 12AB] or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996)] and the said registration is in force for any previous year, then, nothing contained in section 10 [other than [clause (1), clause (23C) and clause (46)] thereof] shall operate to exclude any income derived from the property held under trust from the total income of the person in receipt thereof for that previous year: [Provided that such registration shall become inoperative from the date on which the trust or institution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration shall become inoperative from the date on which the trust is approved under section 10(23C) of the Act. As per 2nd proviso to aforesaid section, the trust whose registration has become inoperative may apply to get its registration operative subject to the condition that in doing so the approval granted under section 10(23C) of the Act shall cease to have any effect. As noted above, in the present case, the learned CIT(Exemptions) rejected the application filed by the assessee under section 12A(1)(ac)(iv) of the Act in terms of 2nd proviso to section 11(7) of the Act, inter-alia, on the basis that the registration granted to the assessee under section 10(23C) was provisional in nature and therefore, same is not identical to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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