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Issues involved: Appeal against refusal of registration u/s 80G r.w.r. 11AA of the I.T. Act, condonation of delay in filing appeal, rejection of registration based on religious nature of Trust's objects, time limit for passing order by CIT.
Refusal of Registration u/s 80G: The appeal was against the CIT's rejection of renewal of registration under section 80G, citing the religious nature of the Trust's objects as per the Memorandum of Association. The CIT invoked Explanation-3 of sub-section 5 of section 80G, stating that charitable purpose does not include any purpose substantially of a religious nature. The Trust contended that its activities were socio-cultural and not religious, emphasizing the general nature of its objects for the betterment of individuals without any religious intent. The Tribunal found no valid reason for the rejection and noted the Trust had been granted registration under section 12A and 80G previously without any change in objects or activities, questioning the CIT's interpretation of the Trust's objects as religious. Condonation of Delay: The Trust filed a petition for condonation of delay in filing the appeal, attributing the delay to a lack of understanding of the legal position and ignorance of available remedies. The Tribunal, considering the Trust's charitable nature and the absence of changes in objects or activities, condoned the delay and admitted the appeal. Time Limit for Passing Order: The Tribunal observed that the CIT's order rejecting registration was time-barred as it exceeded the six-month limit stipulated by Rule 11AA(6) of the I.T. Act. The application for renewal was made on 03.05.2010, and the order was passed on 1.12.2010, beyond the permissible timeframe. Even accounting for the time taken by the Trust in responding to the CIT's directions, the order was still deemed time-barred. Consequently, the Tribunal directed the CIT to grant registration to the Trust from the date of the application under section 80G(5), highlighting the time-barred nature of the CIT's order as an additional reason for allowing the appeal. Conclusion: The Tribunal allowed the Trust's appeal, directing the CIT to grant registration under section 80G w.e.f. 03.05.2010, emphasizing the lack of valid reasons for rejection, condonation of delay due to charitable nature, and the time-barred nature of the CIT's order as grounds for the decision.
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