Inadvertently quoting the wrong clause in an application for trust registration does not invalidate the application.

Assessee by : Shri Chirag Shah, AR Revenue by : Shri Rignesh Das, CIT-DR Date of Hearing 17/07/2025 Date of Pronouncement 30/07/2025 आदेश / O R D E R PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER:

This appeal is filed by the assessee as against the order dated

02/12/2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as “CIT(E)”] denying registration under section 12A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

2. Brief facts of the case are that the assessee is a Trust incorporated on 12/09/2003 providing education at affordable cost to the needy students of the Society. The Trust was registered under section 12A of the Act, claiming exemption under section 11 of the Act. As per the new provisions of the Act, with effect from 01/04/2021, the assessee-trust was to be re-registered as per the procedures mentioned in clauses (i) to (vi) under section 12A(1)(ac) of the Act. Thus, the assessee-trust sought a provisional registration u/s.12AB of the Act, which was granted by Ld.CIT(E) vide order dated 31/05/2021 from A.Y. 2022-23 to A.Y.2024-25. The assessee was required to make application for final registration under clause (iii) of section 12A(1)(ac) of the Act. However, inadvertently the assessee-trust applied under clause (vi) of section 12A(1)(ac) of the Act in Form No.10AB. The Ld.CIT(E) rejected the application on the ground that the assessee made application under clause (vi) of section 12A (1)(ac) of the Act, which applies only to the new trust which has not commenced its activities. As the assessee-trust had claimed exemption u/s.11 of the Act, the assessee’s application was rejected by Ld.CIT(E).

3. Aggrieved against the order of rejection, the assessee is in appeal before us raising the following Grounds of Appeal:

“1. The order passed by CIT (EXEMTION) for rejecting 12AA is bad in law and deserved to be uncalled for.

2. All the condition required for registration under 12AA are fulfilled by the appellant and order passed by the CIT (EXEMTION)

should be uncalled for.

3. The appellant craves to reserve his right to add, alter, amend, or delete any ground of appeal during the course of hearing.”

4. Heard rival submissions and perused the material available on record. Ld.Counsel for the assessee submitted before us copy of Form No.10AB filed by the assessee, wherein the assessee-trust inadvertently claimed for regular registration under clause (vi) of section 12A(1)(ac) of the Act. Whereas the assessee being a trust already registered under the Act and also got a provisional registration under the new regime on 31/05/2021. The assessee ought to have made application in clause (iii) of section 12A(1)(ac) of the Act.

4.1. Section 12A (1)(ac) was introduced by the Finance Act, 2020, and became effective from 1st April 2021. It provides for mandatory re-registration or fresh registration for trusts and institutions under certain conditions. This provision replaced the earlier system of permanent registration with a renewable registration regime for every five years. It mandates a Trust to apply in prescribed circumstances for:

 New registration (first-time applicant),  Provisional registration (for new entities),  Re-registration (due to modification or expiry),  Fresh registration (due to missed deadlines, etc.).

4.2. For better understanding the clauses (i) to (vi) of section 12A(1)(ac) of the Act, which are applicable to various categories of Trust are tabulated as follows: Time Limit for Filing Type of Clause When to Apply Form Application Registration Trust or institution already registered under section On or before 30.06.2021 (later ^{Fresh registration} (i) 10A

12A/12AA and wants to migrate to extended via circu