Income Tax: High Court Directs Filing of Fresh Application for Registration Under Section 12A

Income Tax: High Court Directs Filing of Fresh Application for Registration Under Section 12A

The writ petition was filed with a prayer for transferring the registration granted on 24.09.2021 under Section 12A/12AA of the Income Tax Act in Form No.10AC from the old PAN to the newly allotted PAN for the period from Assessment Year 2022-23 to 2026-27. It was asserted that the earlier PAN was categorized as Firm, while the petitioner is a Society, and in the income tax portal message the recognition was shown to be required under the category of Association of Persons (Trust). The stand taken was that after allotment of the new PAN, the earlier PAN had been merged and, therefore, the registration already issued on 24.09.2021 ought to be shifted and recognized under the new PAN without requiring fresh application. An interlocutory application for preponement of the hearing was also made, and by consent, it was permitted. The writ petition was heard and taken up accordingly.

In the response bearing the date 19.09.2024 presented on behalf of the department, it was mentioned that the previous PAN was in the Firm status and the new one was acquired as a Society by submitting Form 49A. It was submitted that the registration granted earlier could not simply be transferred because under the provisions of Section 12A/12AA the registration is independent and not interchangeable between different PAN holders. It was specifically pointed out that no application for registration had been filed under the new PAN for availing exemption under Sections 11 and 12. The reply reproduced provisions of Section 12AA and explained that registration requires satisfaction of the Principal Commissioner or Commissioner regarding genuineness of activities and compliance with statutory requirements.

Issue Before Court
Whether registration already granted under Section 12A/12AA can be transferred from an old PAN to a new PAN, or whether a fresh application has to be submitted before the competent authority under law.

Court’s Decision: The Court noted that the petitioner had not submitted any application before the Principal Commissioner or Commissioner under the new PAN for registration under Section 12A for availing exemptions under Sections 11 and 12. It recorded that the statutory scheme of Section 12A and Section 12AA does not contemplate transfer of registration from one assessee to another and that registration is required to be separately applied for and considered in respect of each PAN. The Court emphasized that the competent authority is mandated to call for documents and satisfy itself regarding genuineness of activities before granting registration. Therefore, the prayer for directly transferring registration from the earlier PAN to the new PAN was found not sustainable.

The Bench directed that in the event the petitioner submits an application before the Principal Commissioner or Commissioner under the new PAN seeking registration under Section 12A within one week from the date of this order, the respondents shall decide the said application on or before 15.06.2025 in accordance with law. With these observations and directions, the writ petition was disposed of. The Court also recorded that the preponement application stood allowed and disposed of in terms of the order.

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