2020 (10) TMI 421 - HC - Income Tax

Exemption u/s 11 - whether the assessee would be entitled to get registration u/s 12A(a) with effect from the date of application dated 11.3.2009 namely the first application or the CIT was right in granting registration with effect from 01.4.2011 by taking into consideration the second application dated 28.6.2011? - HELD THAT - The first application is dated 11.3.2009 in Form 10A in accordance with Rule 17A of the Income Tax Rules, 1962. The second application dated 28.6.2011 is also in Form 10A and on going by the form of application, it is clear that it is a fresh application and it is not a letter in continuation of the earlier application. Assessee is deemed to have abandoned or waived their claim made in the first application dated 11.3.2009 owing to the fact that they made the second application dated 28.6.2011, which is a fresh application. CIT was well justified in granting registration with effect from 01.4.2011 while noting the assessee's contention that M/s.Carmel Educational and Charitable Trust, Kollampalayam Erode is a separate entity registered under the Tamil Nadu Societies Registration Act, 1975 and the current registration was falling under the financial year 2011-12 and accordingly, he granted registration for the assessment year 2012-13. We find that the CIT had taken a decision on facts thus no substantial question of law.

Summary

Issues:
1. Grant of retrospective registration under Section 12AA of the Income Tax Act for tax exemption.
2. Non-compliance of directions by the Commissioner of Income Tax in the first round of litigation.
3. Rejection of plea for retrospective registration based on Assessing Officer's report.

Analysis:
1. The appellant filed an appeal under Section 260A of the Income Tax Act challenging the order of the Income Tax Appellate Tribunal regarding the grant of registration under Section 12A(a) of the Act. The main issue was whether the registration should have been granted with effect from the date of the first application in 2009 or from the second application in 2011. The Tribunal had granted registration from 01.4.2011 for the assessment year 2012-13.

2. In the first round of litigation, the appellant's application was rejected by the Commissioner of Income Tax. The Tribunal allowed the appeal in the first round due to procedural faults by the CIT. The CIT subsequently granted registration for the assessment year 2012-13 after considering the application. The appellant contended that registration should have been granted from the date of the first application in 2009.

3. The appellant argued that they followed the CIT's advice to file a fresh application in 2011, which led to the registration being granted from 01.4.2011. However, the Court noted that the second application in 2011 was a fresh application, indicating the appellant's abandonment of the claim made in the first application. The CIT's decision to grant registration from 01.4.2011 was upheld based on factual considerations, including the entity's registration under the Tamil Nadu Societies Registration Act, 1975.

4. The Court found no substantial question of law in the appeal, as the CIT's decision was deemed justified. The appellant's failure to pursue the first application and the subsequent filing of a fresh application in 2011 led to the registration being granted from 01.4.2011. The appeal was dismissed, and no costs were awarded.

By Mr. Justice T.S. Sivagnanam And Mrs. Justice V. Bhavani Subbaroyan.