KSCAA raises Issues in S.12AB & 80G Registrations, Seeks urgent CBDT Intervention [Read Representation Copy]
The association raised the need for an increase in the manpower in the department. To avoid the workloads, the association is suggesting to hire more supporting staff to the existing officers.
The Karnataka State Chartered Accountants Association ( KSCA ) flagged issues in the Section 12AB and 80G registrations. The association sought the intervention of the Central Board of Direct Taxes ( CBDT ).
In its representation dated 7th January 2026, the association has raised administrative issues. It said that 17,000 applications regarding the registration and renewals are already pending in the Karnataka state alone. It shall be disposed statutorily by 31 March 2026.
The representation raised concerns regarding declining transparency and institutional confidence in the registration process. It noted that the applicants are subjected to mechanical notices, unexplained delays, repeated document requests for information already on record, and summary rejections on hyper-technical grounds.
With regards to other issues, the association, in its letter said that notices are issued to the applicant seeking information and documents already available on record, including those uploaded with Form 10AB. This according to the CA association shows inadequate application of mind.
Also Read:Notional Interest cannot be Taxed on Funds Provided to Subsidiary when no Interest Paid: ITAT Dismisses Appeal against Shoppers Stop [Read Order]
It was said that the applications are rejected without examination of the merits. This ultimately cancelled the registration under Section 12AB and further taxation of accreted income under Section 115TD.
The association raised the need for an increase in the manpower in the department. To avoid the workloads, the association is suggesting to hire more supporting staff to the existing officers.
“Uneven distribution of cases across jurisdictions has led to avoidable disparities in timelines and outcomes, thereby affecting uniformity and predictability in the registration process” , said the KSCA.
It also requested to release a clarification with regards to the benefit accrued through a provision which was added to Section 12AB(1) throughFinance Act, 2025 w.e.f. 01-04-2025. Through this amendment, an extended period of registration of 10 years on satisfaction of certain conditions. The association needed the CBDT to clarify the benefit to the trusts already in the renewal cycle as the amendment was effective prior to the relevant due dates.
In its prayer, it is suggested that renewal of registration be made automatic, subject to basic validations, and that only select cases be taken up for detailed verification based on risk parameters.
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates
