2005 (11) TMI 233 - AT - Income Tax

Summary

Issues: Delay in granting registration to a trust under IT Act, 1961.

The judgment in the case of a trust challenging the delay in granting registration under the IT Act, 1961 involved the assessment of the delay in filing the application for registration and the subsequent grant of registration. The trust was established on 18th Sept., 2002, and applied for registration on 29th Oct., 2004, requesting registration from the establishment date. The CIT did not condone the delay and granted registration w.e.f. 1st April, 2004. The trust cited reasons for the delay, including the illiteracy and lack of legal knowledge among its members, primarily women from remote villages. The CIT(A) found these reasons insufficient but the Tribunal, after considering the circumstances, condoned the delay and directed the CIT to grant registration w.e.f. 18th Sept., 2002, the establishment date, as requested in the application.

The primary issue in this case was the delay in filing the application for registration under s. 12A(a) of the IT Act, 1961 by the trust. The trust was established on 18th Sept., 2002, and applied for registration on 29th Oct., 2004, seeking registration from the establishment date. The delay was attributed to the illiteracy and lack of legal knowledge among the trust members, particularly women from remote villages. The CIT did not condone the delay and granted registration w.e.f. 1st April, 2004, contrary to the trust's request. However, the Tribunal, upon reviewing the reasons provided for the delay, found them valid and sufficient to condone the delay. The Tribunal directed the CIT to grant registration w.e.f. 18th Sept., 2002, the date of establishment of the trust, as mentioned in the application.

The trust, in its appeal challenging the delay in granting registration under the IT Act, 1961, highlighted the circumstances leading to the delay in filing the registration application. The trust members, primarily women from remote villages, lacked legal knowledge and were illiterate, causing the delay in complying with the registration requirements. The CIT(A) initially did not find these reasons sufficient to condone the delay and granted registration w.e.f. 1st April, 2004. However, the Tribunal, after considering the facts and circumstances, deemed the reasons provided by the trust valid and justified. Consequently, the Tribunal decided to condone the delay and directed the CIT to grant registration w.e.f. 18th Sept., 2002, aligning with the trust's establishment date as per the application.