2010 (3) TMI 1228 - AT - Income Tax

Summary

Issues involved: Appeal against order u/s 12AA(1)(b)(i) read with proviso (ii) to section 12A(a) of the Income-tax Act, 1961.

Issue 1: Delay in filing application for registration

The assessee trust, created in 1986, filed an application for registration under section 12A of the Act in 2007, seeking retrospective effect from 1986. Reasons for delay included the founder trustee's lack of awareness of tax laws and successive deaths of trustees. The CIT rejected the request for retrospective registration, citing the application made beyond the statutory period and vague reasons provided. The registration was granted from 2006, not retrospectively.

Issue 2: Appeal for retrospective registration

In the appeal, the assessee argued for retrospective registration based on a similar case where registration was granted under similar circumstances. The Tribunal considered the provisions of sec.12A and the requirement for the Commissioner to be satisfied about the trust's objects and activities. Relying on a previous decision, the Tribunal found the reasons for delay valid, emphasizing the charitable nature of the institution and the trustees' lack of legal knowledge. The Tribunal directed the Commissioner to grant retrospective registration, allowing the appeal.

Conclusion: The appeal was allowed, granting retrospective registration to the assessee trust. No additional grounds were raised, and the appeal was decided in favor of the assessee.