9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 1033 - HC - Income TaxApplication for registration under section 12-AA - the date of application for registration under section 12-AA would be the date on which the application was originally made i.e. 20/21.11.2000 or the date on which subsequent application/representation dated 30.09.2004 was filed - Held that - When registration is granted it will be operative from the date of the order and the benefit of sections 11 and 12 of the Act on the basis of registration would accrue from the date of the commencement of the financial year in which the said order is passed or the application is moved provided nothing contrary to it is prescribed in the order directing for registration of the society/institution. Thus in the present case as the society was granted registration under section 12AA of the Act specifically w.e.f. 30.09.2004, the benefit of sections 11 and 12 of the Act available on registration would be effective from 01.04.2004 the date of the commencement of the said financial year. The date of filing the original application for registration by the society has no relevance more particularly when the said application was rejected and the proceedings has commenced de novo with the filing of another application for the registration by the society. - Decided in favour of the revenue.
Issues: Determination of the effective date of registration under section 12-AA of the Income Tax Act, 1961 based on the original application date versus subsequent application date.
Analysis: 1. Issue of Effective Date of Registration: The primary issue in this case revolves around the effective date of registration under section 12-AA of the Income Tax Act, 1961. The appellant, the Income Tax Department, challenged the order of the Income Tax Appellate Tribunal regarding the registration of a society. The key question was whether the registration should be effective from the date of the original application in 2000 or the subsequent application in 2004. 2. Facts and Background: The respondent society, Gyan Deep Shiksha Bharti, filed an application for registration under section 12AA of the Act in 2000, which was rejected in 2002. Subsequently, the society filed an appeal and a representation in 2004, leading to the grant of registration w.e.f. 2004. The society further sought rectification to have the registration effective from an earlier date, which was denied in 2015, leading to further appeals and orders by the authorities. 3. Tribunal's Decision: The Tribunal directed the CIT to reconsider the effective date of registration in light of the provisions of section 12AA of the Act. The Tribunal held that the registration should be operative from the commencement of the financial year in which the initial application was moved, i.e., 2000. However, the Income Tax Department argued that the subsequent application in 2004 should be considered as a fresh application, making the registration effective from 2004. 4. Legal Analysis: The High Court analyzed the sequence of events, emphasizing that the original application in 2000 was rejected, and a subsequent representation in 2004 led to the grant of registration w.e.f. 2004. The Court noted that the Act does not specify the operative date of registration but observed that the benefits of sections 11 and 12 of the Act accrue from the date of the registration order. Therefore, the registration granted w.e.f. 2004 should determine the effective date of benefits, irrespective of the date of the initial application. 5. Conclusion: Ultimately, the Court held in favor of the Income Tax Department, setting aside the Tribunal's decision and ruling that the registration of the society should be effective from 2004, aligning with the date specified in the grant of registration. The Court emphasized that the rejected initial application in 2000 did not impact the subsequent grant of registration in 2004, which should govern the availability of benefits under sections 11 and 12 of the Act. 6. Outcome: Consequently, the appeal by the Income Tax Department was allowed, and any registration certificates issued earlier were deemed to be rectified in accordance with the effective date determined by the Court, i.e., w.e.f. 2004.
|
