2008 (9) TMI 954 - AT - Income Tax

Summary

Issues involved: Appeal against the order refusing to modify the registration date u/s. 12A of the Income-tax Act.

Summary:

Issue 1: Registration date under section 12A

The appeal was filed against the order refusing to modify the registration date granted to the assessee u/s. 12A of the Income-tax Act. The assessee, a university established under the National Law School of India Act, sought registration from 1.4.1999 due to changes in tax laws. The Director of Income-tax (Exemptions) initially granted registration from 1.4.2005, citing lack of application for condonation of delay. The assessee appealed for registration from 1.4.1999 based on the provisions of section 10(23C)(iiiab) of the Act.

Issue 2: Sufficient reasons for delay

The Tribunal considered whether there were sufficient reasons for the delay in filing the registration application. The assessee believed its income was exempt under section 10(23C)(iiiab) but applied for registration u/s. 12A as a precaution. The Tribunal found the reasons given by the assessee for the delay to be valid, as it acted in good faith to ensure tax exemption under sections 11 and 12 of the Income-tax Act. The Tribunal acknowledged the university's status as a public charitable institution and its compliance with educational purposes.

Decision

The Tribunal allowed the appeal, directing the grant of registration u/s. 12A from 1.4.1999, considering the bona fide belief of the assessee and the meticulous maintenance of accounts. The delay in filing the application was condoned, emphasizing the university's commitment to legal education and excellence.