2009 (10) TMI 422 - HC - Income Tax

Charitable- Purposes- The assessee is a trust which was created on February 26, 2002, and was registered with the Sub Registrar, Chandigarh. Application under section 12A of the Act was made on May 29, 2007, which was beyond the stipulated time. The assessee filed application for condonation of delay, which was declined by the Commissioner. However, on appeal, the Tribunal held that there was sufficient cause for condonation of delay and the assessee was a genuine trust. Held that-the Commissioner of Income Tax had power to condone a delay in application for registration of a trust. The Tribunal had found on the facts that there was sufficient cause for condonation of delay and the assessee was a genuine trust. The delay in application was rightly condoned by the Tribunal.

Summary

Issues:
- Appeal under section 260A of the Income-tax Act, 1961 against the order of the Income-tax Appellate Tribunal regarding condonation of delay in filing the application for registration under section 12A of the Act.

Analysis:
1. The appeal was filed by the Revenue against the order of the Income-tax Appellate Tribunal regarding the condonation of delay in filing the application for registration under section 12A of the Income-tax Act, 1961. The Tribunal had allowed the condonation of delay based on the genuine nature of the trust and the reasons provided for the delay. The Tribunal considered the trustees being NRIs and I.A.S. officers, lack of awareness about procedural provisions, and the focus on executing projects as reasons for the delay.

2. The Tribunal's decision was based on the principle that there is power for condonation of delay and the determination of sufficient cause for such condonation must be analyzed case by case. The Tribunal referred to the Supreme Court judgment in Collector, Land Acquisition v. Mst. Katiji [1987] 167 ITR 471, emphasizing a pragmatic and liberal approach over technicalities to ensure substantial justice. The Tribunal's finding was deemed reasonable and not perverse in any manner.

3. The Tribunal highlighted the significant achievements and activities of the trust, such as successful projects in villages, recognition by government bodies, and the establishment of committees for development initiatives. The trustees' dedication and involvement in the trust's work were considered as justifications for the delay in filing the application for registration under section 12A of the Act.

4. The High Court, after hearing the arguments, concluded that no substantial question of law arose from the case and dismissed the appeal. The decision of the Tribunal to condone the delay was upheld, emphasizing the importance of a practical and just approach in such matters over strict technicalities.

In conclusion, the judgment upheld the Tribunal's decision to condone the delay in filing the application for registration under section 12A of the Income-tax Act, 1961, based on the genuine nature of the trust, the trustees' involvement in significant projects, and the lack of awareness about procedural requirements. The case highlighted the importance of considering substantial justice and practical reasons for delays rather than rigid technicalities.