Section 12A(1)(ac)(i) — the law in short
What the courts have decided on section 12A(1)(ac)(i), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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People's Mobile Hospitals v CIT (Exemption)
High CourtHelps taxpayerValidity unconfirmed
Form 10 was 51 days late because our accountant left mid-year, but it was on the file before the return was processed. The Commissioner still refused to condone. What now?
The Bombay High Court quashed the refusal and condoned the delay itself. Where the delay is short, unexplained by any wilful default, and the Form was on record when the return was processed, refusing condonation is a pedantic rather than a justice-oriented approach and produces genuine hardship within the meaning of s.119(2)(b).
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Advaya Charitable Foundation v CIT (Exemptions), Mumbai
ITATHelps taxpayerValidity unconfirmed
My Form 10AB for final registration under s.12AB was rejected as time-barred because I missed the 30 June 2024 date in Circular 7/2024. Is anything left to me?
Yes. From 1 October 2024 a proviso to s.12A(1)(ac) lets the Principal Commissioner or Commissioner condone a delay in filing the application where he considers there is reasonable cause, and the Tribunal restored the matter to the CIT(E) with liberty to the trust to make a condonation application. The delay itself was not in dispute; what saved the trust was that the rejection order recorded no defect in its objects, its activities or its documents, its bona fides were not questioned, and the delay did not prima facie appear deliberate.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.