M/S.s.r.trust v. The Principal Commissioner Of Income Tax Central-2

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 18.08.2021 CORAM THE HON'BLE MR.JUSTICE R.SURESH KUMAR W.P.(MD)No.14791 of 2021 W.M.P.(MD)Nos.11697 and 11698 of 2021 M/s.S.R.Trust,Represented by its Trustee,B.Kannan... PetitionerVs. The Principal Commissioner of Income Tax Central-2,No.46 M.G.Road,Chennai-600 034.... Respondent Prayer:Writ Petition filed under Article 226 of Constitution ofIndia, to issue a Writ of Certiorari, to call for the records on thefile of the respondent in PAN: in issuing the impugnednotice in ITBA/COM/F/17/2021-22/1034745653(1) dated 10.08.2021 underSection 12AA93) of the Income Tax Act, 1961 and quash the same asillegal, arbitrary. For Petitioner : Mr.R.SivaramanFor Respondent: Mr.T.R.Senthilkumar Senior Standing Counsel ORDER The prayer sought for herein is for a Writ of CertiorarifiedMandamus to call for the records on the file of the respondent inPAN No.AACTS0376F in issuing impugned notice in ITBA/COM/F/17/2021-22/1034745653(1) dated 10.08.2021 under Section 12AA(3) of theIncome Tax Act, 1961 [hereinafter referred to as the “Act” forshort] and to quash the same. 2.The short facts which are required to be noticed for thedisposal of this writ petition reads thus:- 2.1.The petitioner being a Public Charitable Trust wasregistered under Section 12A(a) of the Act, by the Commissioner ofIncome Tax, Madurai, by order dated 29.01.1987. The petitionerTrust is running a hospital at Madurai and it is assessed in PANNo.AACTS0376F, on the file of the Assistant Commissioner of Incomehttps://hcservices.ecourts.gov.in/hcservices/ Tax, Central Circle-1, Madurai. 2.2.In this regard, it is to be noted that, there has been asearch under Section 132 of the Act carried out in the premises ofthe hospital concern run by the petitioner trust sometime in theyear 2014, following which, notice under Section 153 C of the Act,dated 16.03.2016 was issued for the assessment years 2009-10 to 2015-16. 2.3.In response to the said notice issued under Section 153 Cof the Act, the petitioner filed IT returns electronically underSection 143 (3) read with 153 C of the Act on 03.08.2016 for theassessment years 2013-14, 2014-15 and 2015-16 and also filed manualreturns on 12.08.2016 for the assessment years 2009-10, 2010-11,2011-12 and 2012-13. 2.4.The assessment for assessment years 2009-10 to 2015-16 werecompleted by the revenue by order dated 31.12.2016 and therespondent computed the total taxable income for the relevantassessment years. Felt aggrieved over the said computation of theassessment made by the revenue, the petitioner filed appeal beforethe CIT (Appeal), Chennai. The CIT (Appeal), vide its common orderdated 02.04.2018 allowed the appeals filed by the petitioner bystating that proceedings initiated under Section 153 C of the Act isuntenable and bad in law. As against the said order passed by theCIT (Appeal), Chennai, the revenue preferred Tax Case Appeal in TCANo.161 to 167 of 2020 before this Court, which were also dismissedby confirming the order passed by the CIT (Appeal), Chennai, byorder of this Court dated 24.11.2020. 2.5.However, subsequently, second search under Section 132 ofthe Act was carried on 12.09.2016 and pursuant to which, Section 153C notice was issued on 04.09.2018 for the assessment years 2012-13to 2016-17 and that has ended in the assessment orders dated25.06.2021 for the assessment years 2014-15, 2015-16 and 2016-17.Those assessment orders had also been challenged in W.P.(MD)Nos.12127, 12128 and 12129 of 2021, where some interim orders havebeen passed and those writ petitions are pending. 2.5.However, subsequently, second search under Section 132 ofthe Act was carried on 12.09.2016 and pursuant to which, Section 153C notice was issued on 04.09.2018 for the assessment years 2012-13to 2016-17 and that has ended in the assessment orders dated25.06.2021 for the assessment years 2014-15, 2015-16 and 2016-17.Those assessment orders had also been challenged in W.P.(MD)Nos.12127, 12128 and 12129 of 2021, where some interim orders havebeen passed and those writ petitions are pending. 2.6.In this regard, it seems that, the respondent revenue,having allegedly noticed some violations in dealing with finances bythe petitioner trust, has decided to initiate action to cancel theregistration enjoyed by the petitioner trust and accordingly, anotice under Section 12AA(3) of the Act was issued on 10.08.2021.Under this notice, an opportunity of personal hearing has beengiven, according to which, the petitioner assessee is directed toappear before the respondent on 18.08.2021, at 03.00 p.m., that istoday, to show cause why the registration already being enjoyed bythe petitioner assessee shall not be cancelled. Only at thisjuncture, challenging the said notice under Section 12AA(3) of thehttps://hcservices.ecourts.gov.in/hcservices/Act, dated 10.08.2021, the petitioner assessee has filed the present writ petition with the aforesaid prayer. 3.Since the impugned proceedings is only a notice under Section12AA(3) of the Act, pursuant to which, the petitioner assessee hasto normally appear before the respondent to show cause as to why theproceedings initiated under the impugned notice shall not beproceeded further. But, the petitioner has chosen to file this writpetition, according to the learned counsel appearing for thepetitioner, Mr.R.sivaraman, on the ground that, the respondent hasno jurisdiction to issue such a notice as of now, in view of the newregime having been introduced by the Act called 'Finance Act, 2021',which comes into effect from 01.04.2021. Elaborating further of hissubmission, the learned counsel appearing for the petitioner /assessee has pointed out that, as per the Finance Act, 2021, byintroduction of Section called 12AB, there has been a new procedurefor fresh registration of trust and charitable institutionenvisaged. 4.In this context, the learned counsel has taken this Court tothe erstwhile provisions 12A, 12AA and the newly inserted provision,that is 12AB of the Act. 5.In this context, it is pertinent to be pointed out that,according to the learned counsel, Sub-Section 5 of Section 12AA hasbeen inserted under the Finance Act, 2021, which says that 'Nothingcontained in this Section shall apply on or after the 1[st] day ofApril 2021'. Heavily relying upon Section 12AB, the learned counselwould contend that, what are all the procedures available under12AA, either for grant of registration or for cancellation ofregistration are no more available for the respondent revenue on andfrom the 1[st] day of April 2021. Instead, the new procedure ascontemplated under Section 12AB since has been introduced, underwhich, the exhaustive procedure has been provided for the trust andcharitable institution like the petitioner to adopt for making afresh application to get a fresh registration. In this context, itis the contention of the learned counsel for the petitioner that, anew application under Form 10A has been made through online on04.05.2021 under Sub-Clause (i) of Clause (ac) of Sub-Section (1) ofSection 12A of the Act. Therefore, if any such application is madeunder the Sub-Clause as contemplated under the new regime, suchapplication shall be processed and the authorities shall pass anorder in writing registering the trust or institution for a periodof five years. 6.Relying upon this provision as well as the application madeby the petitioner assessee, the learned counsel for the petitionerwould further submit that, in view of the new regime, as introducedby the Finance Act, 2021, in the context of Section 12AB it becomesmandatory on the part of the trust or charitable institution likethe petitioner to make an application under Section 12A(1)(ac)(i) ofhttps://hcservices.ecourts.gov.in/hcservices/ the Act and if any such application is made, the same shall be dealtwith in the manner provided under Section 12AB of the Act.7.Expanding further his arguments, the learned counselappearing for the petitioner would contend that, as per theprocedure under Section 12AB of the Act, the PrincipalCommissioner/Commissioner, on receipt of an application made underClause (ac) of Sub-section (1) of Section 12A of the Act shall,where the application is made under Sub-Clause(i) of the saidClause, pass an order in writing registering the trust orinstitution for a period of five years. Therefore, the learnedcounsel would canvass the point that, since under the new regime,such an application has been made under Sub-Clause (i) of Clause(ac) of Sub-Section (1) of Section 12A of the Act, which is also anew introduction under the Finance Act, 2021 with effect from01.04.2021, such application shall be processed and registrationshall be granted in writing for a period of five years. 8.However, insofar as any alleged violation of the trust, whichis already enjoying the registration under Section 12A of the Actbefore 1996 regime or under 12AA of the Act after 1996 regime, inorder to cancel such registration, action can be initiated by therespondent revenue under Sub-Section 4 of Section 12AB of the Act.Herein the case on hand, the learned counsel appearing for thepetitioner submitted that, Sub-Section 3 of Section 12AA has beeninvoked by issuance of notice dated 10.08.2021, whereas all theprovisions including Sub-Section 3 of Section 12AA is no moreavailable for the respondent to act upon, in view of Sub-Section 5of Section 12AA having been introduced by the Finance Act, 2021,under which, nothing contained in that Section shall apply on orafter the 1[st] day of April, 2021. 9.Therefore, the sum and substance of the arguments advanced bythe learned counsel appearing for the petitioner in this regard isthat, in view of Sub-Section 5 of Section 12AA, the entire procedurecontemplated under Section 12AA of the Act, which was the regimeupto 31[st] March, 2021, is no more available in the statute book.Therefore, if at all any action to be taken against the existingtrust or charitable institution, it is open to the respondentrevenue to take such action, only after adopting the procedure underSection 12AB of the Act by registering the trust or charitableinstitution concern under the new regime and for which, since theapplication was made already on 04.05.2021 by the petitioner trust,the application should be disposed of granting registration ascontemplated under Section 12AB(1)(a) and after granting suchregistration, it may be open to the respondent to invoke the otherprovisions namely Sub-Section (4) and (5) of Section 12AB of the Actand since the granting of registration is not completed as of now,unless and until the application pending before the respondent isdecided, the respondent does not have any jurisdiction to issue thehttps://hcservices.ecourts.gov.in/hcservices/ impugned notice dated 10.08.2021. Therefore, the impugned ordershall not stand in the legal scrutiny. Hence, the learned counselseeks indulgence of this Court to interfere with the said order. impugned notice dated 10.08.2021. Therefore, the impugned ordershall not stand in the legal scrutiny. Hence, the learned counselseeks indulgence of this Court to interfere with the said order. 10.I have heard Mr.T.R.Senthilkumar, learned Standing Counselappearing for the respondent revenue, who on instructions, wouldsubmit that, insofar as the point urged by the petitioner side thatthe respondent does not have jurisdiction to issue the impugned showcause notice dated 10.08.2021, in view of the new regime having beenintroduced under the Finance Act, 2021 by inserting the provisioncalled 12AB of the Act is concerned, that can be construed that ifany violation is noticed on the part of the petitioner trust orinstitution, that is after re-registration or fresh registration ascontemplated under new regime, subsequently the Income TaxDepartment has got power to initiate action to cancel suchregistration by invoking Sub-Sections 4 & 5 of the Section 12AB.The learned Standing Counsel would also urge that, the word'subsequently' occurred in Sub-Section 4 of Section 12AB shall beconstrued that, whatever the violations noticed in respect of anytrust or institution subsequent to the registration of thoseinstitutions or trust under the new regime as a fresh registrantthat action can be prospectively taken subsequent to suchregistration. However insofar as those trusts or institutions,which are enjoying the registration under old regime either bySection 12A or 12AA, the word 'subsequently' shall be construedthat, during the existing registration under old regime, if anyviolation is noticed, that can also be dealt with under Sub-Sections(4) or (5) of Section 12AB under the new regime. Therefore, theword 'subsequently' cannot have such a pedantic interpretation ashas been sought for by the petitioner assessee, he contended. 11.By making these submissions the learned standing counselappearing for the respondent revenue would further submit that,since personal hearing as contemplated under Section 12AA(3) of theAct has been given through the impugned notice, pursuant to whichthe petitioner assessee can appear before the respondent and to showcause as to why the registration enjoyed by the petitioner trustshall not be withdrawn, by producing the relevant documents to thesatisfaction of the revenue. Without utilizing the said opportunityof personal hearing, the petitioner assessee ought not to haverushed to challenge the impugned show cause notice. Therefore, onthat ground also, the petitioner cannot have a successful challengeagainst the impugned show cause notice, he contended. 12.He also submitted that, assuming that the arguments advancedby the petitioner side as projected by the learned counsel appearingfor the petitioner that in view of the pendency of the applicationdated 04.05.2021, without disposing the same under Section 12AB(1)(a) of the Act, the present action initiated under the impugnednotice ought not to have been issued is concerned, no suchhttps://hcservices.ecourts.gov.in/hcservices/ application to the best of the knowledge of the respondent, as pertheir instructions, either been received or pending with therespondent, but it is for the petitioner to establish that he hasfiled application on 04.05.2021 enabling the proper authority toreceive it and to act upon as contemplated and unless and until thatposition is clarified and established, even the ground that has beenurged by the learned counsel appearing for the petitioner is notavailable to the petitioner side to make all these submissions.Therefore, the learned counsel appearing for the respondent seeksdismissal of this writ petition. 13.I have considered the said rival submissions of the learnedcounsel appearing for the parties and have perused the materialsplaced before this Court. application to the best of the knowledge of the respondent, as pertheir instructions, either been received or pending with therespondent, but it is for the petitioner to establish that he hasfiled application on 04.05.2021 enabling the proper authority toreceive it and to act upon as contemplated and unless and until thatposition is clarified and established, even the ground that has beenurged by the learned counsel appearing for the petitioner is notavailable to the petitioner side to make all these submissions.Therefore, the learned counsel appearing for the respondent seeksdismissal of this writ petition. 13.I have considered the said rival submissions of the learnedcounsel appearing for the parties and have perused the materialsplaced before this Court. 14.Normally, as against the show cause notice, writ petition isnot entertained or cannot be entertained by this Court, as theparties, who suffered with show cause notice shall give show causeto the authorities concerned, who issued such notice and incase ifany personal hearing is given, such opportunity shall be utilised bythe person, to whom the opportunity is given by the authorityconcerned. 15.However, there are exceptions to the general rule inentertaining the writ petition against the show cause notice, whereif such an interference is required for want of jurisdiction orviolation of statutory provision, certainly, this Court canentertain such petition by invoking the extraordinary jurisdictionof this Court under Article 226 of the Constitution. 16.In the present case, one such point has been projected bythe learned counsel appearing for the petitioner, where he has madeelaborate submissions as has been recorded hereinabove. 17.I have analyzed the said submissions of the learned counselappearing for the petitioner. No doubt the petitioner had enjoyedthe registration, which was granted to the petitioner on 29.01.1987as a public or charitable trust, within the meaning of Section 12A(a) of the Act, which was available before 1996. Subsequently,after 1996, the provision 12AA was introduced under which onlythereafter such kind of registration is being made. 18.While so, under the earlier regime either under Section 12Aor 12AA, once the registration is granted, unless and until it iscancelled by the authority for the reason stated or the procedure tobe adopted as has been provided in the said Sections, the trust orinstitutions can enjoy such registration endlessly. 19.In order to avoid this unending time period and to restrictsuch kind of registration, as that was the prevailing situation, thehttps://hcservices.ecourts.gov.in/hcservices/ legislature thought it fit to introduce new regime and thus Section12AB has been introduced. 20.While introducing Section 12AB, Sub-Section 5 of Section12AA has also been introduced. The Sub-Section 5 reads thus:“Nothing contained in this Section shallapply on or after the 1[st] day of April 2021.” which means that, after 1[st] April, 2021, Section 12AA shall not applyfor any cases, in other words, the applicability of the provisionunder Section 12AA has become redundant with effect from 1[st] April,2021. Instead, Section 12AB has been introduced under the heading“Procedure for fresh registration” by the very same Finance Act,2021, with effect from 01.04.2021. 21.In order to appreciate the new provision, namely, Section12AB, the said Section in entirety is extracted herein:“Procedure for fresh registration.12AB.(1)ThePrincipalCommissionerorCommissioner, on receipt of an application madeunder clause (ac) of sub-section (1) of section12A, shall - (a) where the application is made under sub-clause (i) of the said clause, pass an order inwriting registering the trust or institution for aperiod of five years; (b) where the application is made under sub-clause (ii) or sub-clause (iii) or sub-clause (iv)or sub-clause (v) of the said clause,- 21.In order to appreciate the new provision, namely, Section12AB, the said Section in entirety is extracted herein:“Procedure for fresh registration.12AB.(1)ThePrincipalCommissionerorCommissioner, on receipt of an application madeunder clause (ac) of sub-section (1) of section12A, shall - (a) where the application is made under sub-clause (i) of the said clause, pass an order inwriting registering the trust or institution for aperiod of five years; (b) where the application is made under sub-clause (ii) or sub-clause (iii) or sub-clause (iv)or sub-clause (v) of the said clause,- (i) call for such documents or informationfrom the trust or institution or make suchinquiries as he thinks necessary in order otsatisfy himself about- (A) the genuineness of activities of thetrust or institution; and (B) the compliance of such requirementsof any other law for the time being in force bythe trust or institution as are material for thepurpose of achieving its objects; (ii) after satisfying himself about theobjects of the trust or institution and thegenuineness of its activities under item (A) andcomplaince of the requirements under item (B), ofsub-clause (i)- (A) pass an order in writing registeringthe trust or institution for a period of fiveyears; or (B) if he is not so satisfied, pass anorder in writing rejecting such application andalso cancelling its registration after affording ahttps://hcservices.ecourts.gov.in/hcservices/ reasonable opportunity of being heard;(c) where the application is made under sub-clause (vi) of the said clause, pass an order inwriting provisionally registering the trust orinstitution for a period of three years from theassessment year from which the registration issought,and send a copy of such order to the trust orinstitution.(2)All applications, pending before the PrincipalCommissioner or Commissioner on which no order hasbeen passed under clause (b) of sub-section (1) ofsection 12AA before the date on which this sectionhas come into force, shall be deemed to beapplications made under sub-clause (vi) of clause(ac) of sub-section (1) of section 12A on thatdate. (3)The order under clause (a), sub-clause (ii) ofclause (b) and clause (c), of sub-section (1)shall be passed, in such form and manner as may beprescribed, before expiry of the period of threemonths, six months and one month, respectively,calculated from the end of the month in which theapplication was received. (4)Where registration of a trust or an institutionhas been granted under clause (a) or clause (b) ofsub-section (1) and subsequently, the PrincipalCommissioner or Commissioner is satisfied that theactivities of such trust or institution are notgenuine or are not being carried out in accordancewith law the objects of the trust or institution,as the case may be, he shall pass an order inwriting cancelling the registration of such trustor institution after affording a reasonableopportunity of being heard. (5)Without prejudice to the provisions of sub-section (4), where registration of a trust or aninstitution has been granted under clause (a) orclause (b) of sub-section (1) and subsequently, itis noticed that- (a) the activities of the trust or theinstitution are being carried out in a manner thatthe provisions of sections 11 and 12 do not applyto exclude either whole or any part of the incomeof such trust or institution due to operation ofsub-section (1) of section 13; or(b) the trust or institution has not compliedwith the requirement of any other law, as referredto in item (B) of sub-clause (I) of clause (b) ofhttps://hcservices.ecourts.gov.in/hcservices/ (5)Without prejudice to the provisions of sub-section (4), where registration of a trust or aninstitution has been granted under clause (a) orclause (b) of sub-section (1) and subsequently, itis noticed that- (a) the activities of the trust or theinstitution are being carried out in a manner thatthe provisions of sections 11 and 12 do not applyto exclude either whole or any part of the incomeof such trust or institution due to operation ofsub-section (1) of section 13; or(b) the trust or institution has not compliedwith the requirement of any other law, as referredto in item (B) of sub-clause (I) of clause (b) ofhttps://hcservices.ecourts.gov.in/hcservices/ sub-section (1), and the order, direction ordecree, by whatever name called, holding that suchnon-compliance has occurred, has either not beendisputed or has attained finality,then, the Principal Commissioner or theCommissioner may, by an order in writing, afteraffording a reasonable opportunity of being heard,cancel the registration of such trust orinstitution.” 22.Simultaneously, the Clause called (ac) also has beeninserted in Section 12A of the Act by the very same Finance Act,2021 with effect from 01.04.2021, which reads thus:“(ac) notwithstanding anything contained inclauses (a) to (ab), the person in receipt of theincome has made an application in the prescribedform and manner to the Principal Commissioner orCommissioner, for registration of the trust orinstitution,- (i) where the trust or institution isregistered under section 12A [as it stoodimmediately before its amendment by the Finance(No.2) Act, 1996 (33 of 1996)] or under section12AA [as it stood immediately before itsamendment by the Taxation and Other Laws(Relaxation and Amendment of Certain Provisions)Act, 2020 (38 of 2020)], within three months fromthe first day of April, 2021. (ii) where the trust or institution isregistered under section 12AB and the period ofthe said registration is due to expire, at leastsix months prior to expiry of the said period; (iii) where the trust or institution hasbeen provisionally registered under section 12AB,at least six months prior to expiry of period ofthe provisional registration or within six monthsof commencement of its activities, whichever isearlier; (iv) where registration of the trust orinstitution has become inoperative due to thefirst proviso to sub-section (7) of section 11,at least six months prior to the commencement ofthe assessment year from which the saidregistration is sought to be made operative; (v) where the trust or institution hasadopted or undertaken modifications of theobjects which do not conform to the conditions ofregistration, within a period of thirty days fromthe date of the said adoption or modification;https://hcservices.ecourts.gov.in/hcservices/ (vi) in any other case, at least one monthprior to the commencement of the previous yearrelevant to the assessment year from which thesaid registration is sought,and such trust or institution is registered undersection 12AB;]” 23.Therefore, under Sub-Clause (ac) of Clause (1) of Section12A, the trust or institution registered under Section 12A or 12AAshall make an application within three months from the 1[st] April,2021 in the prescribed form and manner to the PrincipalCommissioner/ Commissioner for registration of trust or institution. 24.If any such application is made under Section 12A(1)(ac),how such application is to be dealt with has been provided underSection 12AB(1)(a), which has also been quoted hereinabove, where,on receipt of application submitted under Section 12A(1)(ac), thePrincipal Commissioner/Commissioner shall pass an order in writingregistering the trust or institution for a period of five years. 23.Therefore, under Sub-Clause (ac) of Clause (1) of Section12A, the trust or institution registered under Section 12A or 12AAshall make an application within three months from the 1[st] April,2021 in the prescribed form and manner to the PrincipalCommissioner/ Commissioner for registration of trust or institution. 24.If any such application is made under Section 12A(1)(ac),how such application is to be dealt with has been provided underSection 12AB(1)(a), which has also been quoted hereinabove, where,on receipt of application submitted under Section 12A(1)(ac), thePrincipal Commissioner/Commissioner shall pass an order in writingregistering the trust or institution for a period of five years. 25.On reading of this Section, it has been made abundantlyclear that, once the trust enjoyed the registration either under 12Aregime or 12AA regime, the same, within three months from 1[st] April,2021, shall make an application in the prescribed form and mannerprovided therein and on receipt of such application, the PrincipalCommissioner/Commissioner as the case may be shall pass an order inwriting registering the trust or institution for a period of fiveyears. Therefore, under this provision, no such procedure has beencontemplated that the Principal Commissioner/Commissioner, onreceipt of such application from the existing trust enjoyedregistration under Section 12A or 12AA, to have any discretioneither to grant or to reject the registration as sought for. Thereason being that, if at all any adverse notice comes to theDepartment, as against the existing trust or institution, whichallegedly violated any of the conditions or provisions of the Act,such kind of issue can be dealt with separately, that is, afterregistration is made under the new regime. 26.This alone should be the procedure that has been intended bythe legislature. In this regard, Sub-Section 4 of Section 12AB makesit clear that, if the registration of a trust or an institution isgranted under Clause (a) or Clause (b) of Sub-Section (1) andultimately, the Principal Commissioner/Commissioner is satisfiedthat the activities of the said trust or institution are not genuineor not being carried the objects of the trust or institution as thecase may be, he shall pass an order in writing cancelling theregistration of the said trust or institution, after affordingreasonable opportunity of being heard. https://hcservices.ecourts.gov.in/hcservices/ 27.Therefore, the procedure of cancellation of the registrationalready enjoyed either under 12A regime or 12AA regime in the caseof the petitioner, in view of the new regime having been introduced,shall take place only after disposing the application made by thetrust or institution, under the new regime, as contemplated underSection 12AB(1)(a). 28.In this context, it is the case of the petitioner assesseethat, on 04.05.2021, such application has been made through onlineand the hard copy of the same has been filed in the typed set ofpapers. However, on instructions, the learned Standing Counselappearing for the respondent revenue has disputed the same bystating that, no such application either has been received or ispending with the respondent. 29.Since it is the claim of the petitioner that the applicationhas been made only through online and for which, acknowledgmentnumber has also been generated and it is also printed and the samehas been filed by way of hard copies before this Court, we cannotdoubt the application submitted by the petitioner on 04.05.2021. 28.In this context, it is the case of the petitioner assesseethat, on 04.05.2021, such application has been made through onlineand the hard copy of the same has been filed in the typed set ofpapers. However, on instructions, the learned Standing Counselappearing for the respondent revenue has disputed the same bystating that, no such application either has been received or ispending with the respondent. 29.Since it is the claim of the petitioner that the applicationhas been made only through online and for which, acknowledgmentnumber has also been generated and it is also printed and the samehas been filed by way of hard copies before this Court, we cannotdoubt the application submitted by the petitioner on 04.05.2021. 30.Assuming that such application submitted by the petitionerhas not reached the concerned authority of the Income Tax Departmentfor taking action, still the petitioner has got time to make such anapplication, because, the original period of three months witheffect from 01.04.2021 as provided under the new regime has beensubsequently, extended by the notification issued in this regard byCentral Board of Direct Taxes, Department of revenue, dated25.06.2021, under which, the time period has been extended upto 31[st]August, 2021. 31.The dispute as to whether the application submitted by thepetitioner on 04.05.2021 has reached the concerned officer or notprobably would have arisen, because, in the hard copy of theapplication submitted before this Court, in the column against the“authority granting registration”, it has been typed as ''IncomeTax”. However, the Act contemplates either the PrincipalCommissioner/Commissioner, as the case may be, shall be theauthority to consider the application submitted by the trust orinstitution for grant of registration. Probably because of thisconfusion, the application submitted by the petitioner on 04.05.2021might not have reached the concerned officer. Nevertheless, the hardcopy of the application dated 04.05.2021 can very well be submittedby the petitioner to the concerned officer, namely the PrincipalCommissioner/Commissioner as the case may be and such kind ofpersonal submission of the copy of application already sent throughonline on 04.05.2021 is necessitated because of the peculiarcircumstances. Such application submitted by the petitioner has tobe first looked into and should be disposed of by the PrincipalCommissioner/Commissioner as the case may be under the aforesaidhttps://hcservices.ecourts.gov.in/hcservices/ provision namely, Section 12AB for granting registration in writingto the trust or institution concern for a period of five years.32.Once such registration is granted for five years under thenew regime, it is very well open to the respondent revenue to invokeSub-Sections (4) or (5) of Section 12AB, where they can very wellverify whether any contravention or violation is noticed from thetrust, that is the petitioner and in that case, what action iscontemplated, that is cancellation of registration can very well betaken as per the procedure established under Section 12AB. 33.In this context, even though an attempt has been made by thelearned counsel appearing for the respondent revenue that the word'subsequently' occurred in Sub-Section 4 of Section 12AB shall beconstrued as 'subsequent to the registration', even under the oldregime, that is 12A and 12AA of the Act, this Court is not impressedwith said interpretation sought to be given by the revenue side, asprojected by the learned Standing Counsel, because, the entireprocedure as has been contemplated under 12AB is the new procedureintroduced, where the word 'subsequently', since has beenintentionally made in the Sub-Section, it means, after theregistration is undertaken within the meaning of Section 12AB, thenonly, if any punitive action by way of cancellation of registrationis to be undertaken by the revenue. 34.Therefore, the objection raised by the petitioner side bypointing out the legal position, in view of the new regimeintroduced with effect from 01.04.2021 in the Finance Act, 2021, asagainst the impugned notice, is well found. 35.In that view of this matter, this Court feels that, theimpugned notice dated 10.08.2021 issued under Section 12AA(3) of theAct, as such, cannot be proceeded further and it can be kept inabeyance for the time being, till an order is passed by thePrincipal Commissioner/Commissioner as the case may be on theapplication of the petitioner dated 04.05.2021 under Section 12AB(1)(a) of the Act and once such an order is passed granting suchregistration for another terms of five years as referred to orcontemplated under the new regime, then, it is open to therespondent revenue to proceed against the petitioner and therefore,from that stage, the impugned proceedings dated 10.08.2021 can beproceeded in accordance with law, especially under Sub-Section 4 ofSection 12AB of the Act. 36.For all these reasons stated above and the discussions madehereinabove, this Court is inclined to dispose of this writ petitionwith the following orders:(a)that the impugned notice dated 10.08.2021shall be kept in abeyance.(b)Theapplicationsubmittedbythe https://hcservices.ecourts.gov.in/hcservices/ petitioner dated 04.05.2021 through onlineaddressed to the Income Tax Department through webportal shall be processed by the PrincipalCommissioner/Commissioner as the case may be ascontemplated under Section 12AB of the Act asintroduced by the Finance Act, 2021 and suchapplication since has been filed under Sub-Clause(i) of Clause (ac) of Sub-Section (1) of Section12A of the Act, the same shall be considered andthe order shall be passed in writing to and infavour of the petitioner registering thepetitioner trust for a period of five years.(c)once such order is passed granting suchfresh registration for the petitioner trust forfive years, it is open to the respondent toproceed against the petitioner, under Sub-Section(4) of Section 12AB of the Act and for the saidpurpose, what are the contends made in theimpugned notice dated 10.08.2021 shall be utilizedand the notice now has been directed to be kept inabeyance shall be proceeded to reach its logicalconclusion, as per the new regime under Section12AB of the Act. (d)In order to resolve the controversy as towhether the application dated 04.05.2021 submittedby the petitioner through online has reached theconcerned officer or not, the petitioner ispermitted to submit a hard copy of the saidapplication dated 04.05.2021 along with relevantdocuments, if any, to the concerned officernamely,theofficeofthePrincipalCommissioner/Commissioner as the case may be, whois the competent authority or officer concerned topass orders as indicated above, within a period oftwo weeks from the date of receipt of a copy ofthis order and on receipt of the same, the needfulas indicated above shall be undertaken by therespondent herein. 37.With all these directions, this writ petition isdisposed of. No costs. Consequently, connected miscellaneouspetitions are closed. Assistant Registrar (CS-I) https://hcservices.ecourts.gov.in/hcservices/ NoteIn view of the present lock down owing to COVID-19 pandemic,a web copy of the order may be utilized for officialpurposes, but, ensuring that the copy of the order that ispresented is the correct copy, shall be the responsibility ofthe advocate/litigant concerned.TO The Principal Commissioner of Income Tax Central-2,No.46 M.G.Road,Chennai-600 034 +1 CC to M/s.M.P.SENTHIL, Advocate ( SR-26821[F] dated 19/08/2021 ) NSN(CO)KB(28.09.2021) 14P 3C W.P.(MD)No.14791 of 202118.08.2021