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Issues involved: Appeal against rejection of registration under sec.12AA of the Income-tax Act, 1961.
Summary: The appeal was filed by the assessee against the order of the Commissioner of Income-tax rejecting the application for registration under sec.12AA. The trust was constituted in 1986, and the registration application was filed after a delay of 19 years, 9 months, and 10 days. The Commissioner granted registration with effect from 1st April, 2007, but not retrospectively. The assessee explained that the delay was due to the trustees being senior citizens working on an honorary basis in a far-flung area, engaged in charitable activities like conducting seminars and publishing articles. The Commissioner granted registration from 1st April, 2007, but not retrospectively. The Tribunal found that the delay was reasonable considering the circumstances and directed the Commissioner to grant registration retrospectively under sec.12AA. The Tribunal noted that there was no dispute regarding the charitable nature of the activities carried out by the trust. While the Commissioner granted registration from 1st April, 2007, he did not do so retrospectively due to the reasons explained by the assessee for the delay. The Tribunal considered the fact that the trust had been engaged in charitable activities since 1986 and that the delay was not intentional but due to genuine reasons related to the trustees being senior citizens working on an honorary basis in a remote area. The Tribunal found that the delay of 19 years, though significant, was justified in the circumstances and directed the retrospective grant of registration under sec.12AA. Therefore, the Tribunal allowed the appeal filed by the assessee and directed the Commissioner of Income-tax to grant registration retrospectively under sec.12AA of the Income-tax Act, 1961.
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