Sunder Nagar Satsang Sabha Vs. CIT (Exemptions)

Parties Involved

Facts Summary

The assessee, Sunder Nagar Satsang Sabha, is a Trust created on 22/06/2022 for functioning as a Gurudwara conducting various religious and charitable activities. It obtained provisional approval in Form 10AC on 24/12/2022, valid up to AY 2025-26. The assessee commenced its activities in May 2023 after obtaining provisional registration but failed to file its application in Form 10AB to regularize the provisional registration within the specified time. The application in Form 10AB was filed on 20/03/2025, with a delay of 16 months. A notice was issued by the Office of Ld.CIT(E) dated 08/07/2025, calling upon the assessee to furnish relevant information and seeking an explanation for the belated filing. The assessee responded on 19/07/2025, attributing the delay to confusion regarding the new provision and the assumption that the provisional registration was valid till 31/03/2026. The Ld.CIT(E) rejected the application for regularization of provisional registration, observing that the assessee failed to show a reasonable cause for the delay or establish genuine hardship.…

Legal Issues

• 1. Whether the Ld.CIT(E) erred in rejecting the Application in Form No. 10AB dated 20.03.2025 seeking registration under section 12AB of the Act on the ground of delay.
• 2. Whether the CIT(E) erred in rejecting the application filed under section 12AB on the ground that the application should have been filed within six months prior to the expiry of the period of provisional registration or within six months of the commencement of activities.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Arya Sindhu Sanskrit Gurukul Sansthan Vs. CIT (Exemption)

• Sir Chhotu Ram Educational And Cultural Society Vs. Commissioner of Income Tax (Exemptions) Chandigarh

  Delhi Bench benchAllowed

• Anybody Can Help Foundation Vs. ITO Exemp. 1(1)

  Mumbai Bench benchAY 2025-26 to 2029-30Allowed

• Shree Aath Paragana Gurjar Prajapati Samaj Trust vs. The CIT(Exemption)

  Ahmedabad bench

• Kanchi Periyava Trust – Mysore Vs. The Pr. Commissioner of Income Tax [Exemptions], Bengaluru

  ‘A’ Bench: Bangalore benchAY 2024-25Allowed

• Amrut Public Charitable Trust vs. ITO Exemption

  Mumbai Bench benchAY 2026-27Allowed