ITAT Remands Section 12AB Registration Application for Fresh Consideration :

Riddhima Shiksha Samiti had initially been granted provisional registration under Section 12AB of the Income Tax Act, 1961, through an order issued by the CPC on May 27, 2021, valid for Assessment Years 2021-22 to 2023-24.

Under Section 12A(1)(ac)(iii) of the Act, the assessee was required to apply for regular registration in Form No. 10AB at least six months before the expiry of its provisional approval or within six months of commencement of its activities, whichever was earlier. Accordingly, the application was due by September 30, 2023, which was subsequently extended to June 30, 2024, by CBDT Circular No. 7/2024 dated April 25, 2024.

However, the assessee failed to submit the application within the prescribed period. Upon discovering the omission, it filed an application for regular registration along with a condonation petition on September 30, 2025, explaining that the delay had occurred due to a bona fide procedural mistake and lack of awareness regarding the requirement. The CIT (E) rejected the condonation request, holding that no satisfactory explanation had been furnished for the delay. Consequently, the assessee's application for permanent registration under Section 12AB(1)(b)(ii)(B) was not considered on merits, resulting in a tax demand for AY 2023-24 and difficulties in seeking registration for subsequent years.

The Tribunal observed that the CIT (E) had rejected the condonation application merely on the ground of delay without recording any cogent reasons for rejecting the explanation furnished by the assessee. It further noted that the assessee had not been provided an effective opportunity of hearing before the adverse decision was taken.

Considering the facts and circumstances of the case, the Tribunal held that the matter required fresh consideration rather than rejection of the assessee's request without proper examination. Accordingly, the Tribunal set aside the matter and restored the assessee's application to the file of the CIT(E) for fresh consideration on merits.