2022 (12) TMI 879 - AT - Income Tax

Exemption u/s 11 - deemed registration u/s 12AA - assessee has not filed copy of application filed in Form- 10A for registration u/s 12AA, nor any evidence that the assessee made any request before ld CIT(E) for claiming registration from alleged earlier application file in 2011 - HELD THAT - We find that though, the assessee is claiming to have filed application for registration u/s 12AA in the year 2011 and also furnished copy of such application - Assessee failed to furnish any evidence whether such application was registered in the office of CIT(E) or not or any further query was raised by the ld. CIT(E). One sided correspondence, unless it is acknowledged by other party would not be considered as the application of assessee was pending or not for similar registration. As recorded above, the assessee was allowed registration u/s 12AA from the date of application, which we find in order. The ratio of decisions of various case laws relied by the ld. AR of the assessee are not helpful to him. The ratio of all those case laws are altogether different. In none of the case law, the assessee was allowed registration form retrospective date. The case law relied by ld. CIT-DR for the revenue in Harshit Foundation 2022 (5) TMI 179 - SC ORDER wherein as held that there is no specific provision in the Income Tax Act that non-deciding the registration application under Section 12AA within a period of six months there shall be a deemed registration. Thus, the ratio of this decision is directly applicable on the facts of the present case. Even otherwise, the law declared by the Hon ble Apex Court is a binding precedent by virtue of Article 141 of the Constitution of India. Thus, we do not find any merit in various grounds of appeal raised by assessee - Appeal of assessee is dismissed.

Summary

Issues:

1. Registration of a public charitable trust under Section 12AA of the Income Tax Act.
2. Claim for retrospective registration from the inception of the trust.
3. Application for registration filed in 2011 and subsequent application in 2018.
4. Interpretation of relevant case laws and legal precedents.
5. Deemed registration and its applicability in the present case.

Issue 1: Registration of Public Charitable Trust under Section 12AA:

The appeal pertains to the registration of a public charitable trust under Section 12AA of the Income Tax Act. The trust filed an application for registration on 13/12/2018 and was granted registration from the same date by the Commissioner of Income Tax (Exemptions). The trust, however, contested this decision, seeking registration from the inception of the trust in 2010. The dispute revolves around the date from which the registration should be effective, as per the provisions of Section 12AA.

Issue 2: Claim for Retrospective Registration:

The assessee trust claimed retrospective registration from the inception of the trust in the financial year 2011-12. The trust argued that its initial application for registration was made in December 2011, and hence, registration should be granted from that period. The trust contended that there was no malafide intent in the delay of filing the subsequent application in 2018, and relied on various legal precedents to support its claim for registration from the earlier date.

Issue 3: Application History and Interpretation of Case Laws:

The trust initially applied for registration in 2011, providing supporting documents, but there was no confirmation of registration or queries from the tax authorities. Subsequently, in 2018, another application was filed, leading to the registration being granted from the date of the second application. The trust's argument for retrospective registration was based on the belief that the delay in filing the second application did not indicate malafide intent. The trust cited several case laws to support its position, emphasizing the genuineness of its charitable activities.

Issue 4: Analysis of Legal Precedents:

The Tribunal analyzed the legal precedents cited by both parties. The trust's reliance on case laws to support its claim for retrospective registration was deemed insufficient by the Tribunal. The Tribunal noted that none of the case laws provided for registration from a retrospective date, and the trust's argument based on these precedents was not found to be persuasive.

Issue 5: Deemed Registration and Applicability:

The Tribunal considered the concept of deemed registration and its applicability in the present case. Referring to a recent Supreme Court decision, the Tribunal highlighted that there is no provision for deemed registration under the Income Tax Act. The Tribunal emphasized that the law declared by the Supreme Court is binding and found no merit in the grounds of appeal raised by the assessee. Consequently, the appeal for retrospective registration was dismissed, affirming the registration granted from the date of the second application in 2018.

This detailed analysis of the judgment provides insights into the issues surrounding the registration of a public charitable trust under Section 12AA of the Income Tax Act, the claim for retrospective registration, the application history, interpretation of legal precedents, and the concept of deemed registration as per the Supreme Court's ruling.