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TMI Blog2025 (1) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... to be carrying out services to the financial institution such as nationalized banks, NABARD etc. which the Ld. CIT(E) noted at para 4.1 (page 5 to 9 of the impugned order). 3. The assessee trust was formed on 05.01.2005 which trust deed was amended on 28.07.2005 and the CIT-1 had granted registration u/s. 12AA of the Act on 31.08.2005 from AY 2005-06 onwards (refer page 24 of paper book). The Ld.AR brought to our notice that assessee thereafter amended its trust deed on 06.06.2019 (refer page 39 to 41 of the paper book) and pursuant thereto, applied for registration on 04.07.2019 u/s. 12A(1)(ab) in Form 10A, which was rejected by the Ld.CIT(E) vide order dated 09.01.2020 (refer page 55 & 56 of the paper book), which decision was assailed before this Tribunal; and the Tribunal vide order dated 22.06.2022 was pleased to set aside the same back to the file of the Ld.CIT(E) (refer page 75 to 78 of the paper book); and thereafter, the assessee had filed 3rd trust deed amended deed on 25.10.2023 before him and thereafter, the Ld.CIT(E) by an order dated 08.11.2023 was pleased to grant registration u/s. 12AA of the Act from the date of application filed by the assessee (refer page 111 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce (No. 2) Act, 1996 (33 of 1996)] or under section 12AA [as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (38 of 2020)], within three months from the first day of April, 2021; (ii) where the trust or institution is registered under section 12AB and the period of the said registration is due to expire, at least six months prior to expiry of the said period; (iii) where the trust or institution has been provisionally registered under section 12AB, at least six months prior to expiry of period of the provisional registration or within six months of commencement of its activities, whichever is earlier; (iv) where registration of the trust or institution has become inoperative due to the first proviso to sub-section (7) of section 11, at least six months prior to the commencement of the assessment year from which the said registration is sought to be made operative; (v) where the trust or institution has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, within a period of thirty days from the date of the said adoption or modification; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the period of three months, six months and one month, respectively, calculated from the end of the month in which the application was received. (4) Where registration or provisional registration of a trust or an institution has been granted under clause (a) or clause (b) or clause (c) of sub-section (1) or clause (b) of sub-section (1) of section 12AA, as the case may be, and subsequently,- (a) the Principal Commissioner or Commissioner has noticed occurrence of one or more specified violations during any previous year; or (b) the Principal Commissioner or Commissioner has received a reference from the Assessing Officer under the second proviso to sub-section (3) of section 143 for any previous year; or (c) such case has been selected in accordance with the risk management strategy, formulated by the Board from time to time, for any previous year, the Principal Commissioner or Commissioner shall- (i) call for such documents or information from the trust or institution, or make such inquiry as he thinks necessary in order to satisfy himself about the occurrence or otherwise of any specified violation; (ii) pass an order in writing, cancelling the registration of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lling for any document or information, or for making any inquiry, under clause (i) of subsection (4).]] 6. Thus, according to the Ld AR, the assessee being a Trust which was already enjoying registration u/s. 12AA of the Act, [after TOLA 2020] as per the amended provisions (supra), it was eligible to apply for reregistration in Form 10A within three months from 1st day of April, 2021 i.e. within 30.06.2021 under sub-clause (i) of Sec.12A(1)(ac) and then, in such an event, it would have obtained registration automatically from CPC u/s. 12AB(a) of the Act for five (5) years from AY 2022-23 to AY 2026-27. However, due to Covid pandemic, digital glitches, etc., several Institutions/Trusts could not e-file the application for registration and considering the genuine hardship faced by Trust/Institution, the CBDT had issued several circulars extending the due date of filing from 30.06.2021 (applicable for old Trust enjoying 12A/12AA registration before TOLA 2020) to 30.06.2024 applicable also for registration u/s. 10(23C), and 80G(5) of the Act]. 7. However, the Ld AR pointed out that assessee-Trust while applying for registration on 08.11.2023 (well within the extended time) online in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17.05.2024]; And since, assessee had applied for registration well within the extended period of time allowed by the CBDT and taking note of the fact that the assessee is enjoying Sec.12AA registration from year 2005 and again from AY 2020- 21 onwards and eligible as per law to claim registration for five assessment years u/s. 12AB of the Act, the claim of assessee should not denied. 9. Per contra, the Ld.DR opposed the plea of the assessee and submitted that since, the assessee had wrongly filled up online portal of the Income Tax Department, Ld.CIT(E) rejected the same assuming it to be applied by the Trust for renewal and there is no need to interfere with the same. 10. We have heard both the parties and perused the material available on record. The facts afore-stated being not disputed, is not repeated for sake of brevity. The assessee being an old Trust which enjoyed registration u/s. 12AA of the Act, from year 2005 and thereafter from AY 2020-21 onwards [granted by the Ld.CIT(E) dated 08.11.2023 with retrospective effect from date of application i.e. on 04.07.2019 i.e. AY 2020-21 onwards]. Nevertheless, after the Parliament had passed TOLA 2020 w.e.f.01.04.2021, the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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