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TMI Blog2009 (8) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... the various decisions including the decision in Society of Divine Providence s case [ 1997 (10) TMI 41 - MADHYA PRADESH HIGH COURT] , Motilal Padampat Sugar Mills Co. Ltd. v. State of UP [ 1978 (12) TMI 45 - SUPREME COURT] and Collector, Land Acquisition v. Mst. Katiji [ 1987 (2) TMI 61 - SUPREME COURT] has held Society receives voluntary contributions from the persons for a charitable cause. The payments are not received by the Society for diverting towards payment of taxes. The spirit with which the payments are made are also to be considered and if there is a bona fide reason for filing the application for registration belatedly then the delay should be condoned so that the purposes for which contributions have been received is achieved. If the Society knowingly ignores the provisions of law then necessarily it has to bear the burden. In the instant case it has not been established as a matter of fact that the trustees or the persons, who are managing the affairs of the Society were aware of filing the application u/s 12A. CIT should have condoned the delay. Accordingly, we feel that it is a fit case where the delay should be condoned and provisions of sections 11 and 12 sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility of income of trust for years earlier to registration ." 3. Being aggrieved by the above order the assessee is in appeal before us. 4. At the time of hearing the ld. Counsel for the assessee has argued ground Nos. 1 and 4 only, which read as under: "(1)On the facts and in the circumstances of the case the ld. CIT-III, Thane erred in not condoning the delay in filing the application for registration under section 12A( a ) of the Income-tax Act, 1961 and granting the registration to the appellant Trust under section 12AA with effect from 1-4-2007. (4)That the ld. CIT should have granted registration under section 12AA of the Act with effect from 1-7-1973 and allowed the Trust to claim the benefit of exemption under section 11 of the Income-tax Act, 1961." 5. The ld. Counsel for the assessee while submitting the brief facts of the case submitted that The Church of Our Lady of Grace, Papdy was established in the year 1574 under the Church Law (Canon Law). There is no Trust Deed/Document creating the Appellant Trust. The Appellant Trust was registered as a Public Charitable Trust on the basis of an application for registration filed in Schedule-II ( vide Rule 6) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant Trust could not locate the Certificate of Registration under section 12AA and hence, it filed an application in Form No. 10A for registration of the Trust under section 12A( a ) of the Income-tax Act, 1961 on 21-5-2007 with the Commissioner of Income-tax-III, Thane. The Office of the Commissioner of Income-tax-III, Thane issued a letter dated 14-9-2007 asking the Trustee to furnish reasons as to why the application for registration under section 12A( a ) was not filed within one year from the date of creation of the Trust as per provisions of section 12A. In response the assessee filed letter dated 12-10-2007 inter alia requested to consider the genuine reasons which caused the delay in filing the application for registration under section 12A( a ) of the Act, the copy of which is appearing at pages 1 to 3 assessee s paper book. He further submits that the ld. CIT after considering the same granted registration with effect from 1-4-2007, instead of 1-7-1973. He, therefore, submits that in view of the genuine reasons the registration should be granted with effect from 1-7-1973. The reliance was also placed on the following decisions : ( a ) All India Primary Teachers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he trust, whichever is later. Vide CBDT Circular No. 115, dated 30-6-1973, the time for filing of such application has been extended until 15-8-1973 or one year from the date of creation of the trust whichever is later. We further note that the amendment of the proviso below clause ( a ) of section 12A by the Finance (No. 2) Act, 1991 with effect from 1-10-1991 enables the Commissioner to condone the delay and where the delay is condoned registration has effect from the date of creation of the trust. We further observed that the assessee vide his application dated 12-10-2007 while explaining the reasons for delay that he was under the bona fide belief that since the Trust is registered in the year 1955 his predecessor must have complied with various provisions applicable to the Public Charitable Trust under the Income-tax Act, 1961, has also explained the cause for delay in submitting the application within time. However, the ld. CIT rejected the assessee s application holding "unsatisfactory explanation" for submission of delay. In our view the rejection of the reasons of delay as "unsatisfactory explanation" is not a reasoned order. It was necessary for the Commissioner to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] 15 SOT 75 (Bang.), the Tribunal after considering the various decisions including the decision in Society of Divine Providence s case ( supra ), Motilal Padampat Sugar Mills Co. Ltd. v. State of UP [1979] 118 ITR 326 (SC) and Collector, Land Acquisition v. Mst. Katiji [1987] 167 ITR 471 (SC) has held as under : "17. The Society receives voluntary contributions from the persons for a charitable cause. The payments are not received by the Society for diverting towards payment of taxes. The spirit with which the payments are made are also to be considered and if there is a bona fide reason for filing the application for registration belatedly then the delay should be condoned so that the purposes for which contributions have been received is achieved. If the Society knowingly ignores the provisions of law then necessarily it has to bear the burden. In the instant case it has not been established as a matter of fact that the trustees or the persons, who are managing the affairs of the Society were aware of filing the application under section 12A. Under such circumstances we feel that the ld. CIT should have condoned the delay. Accordingly, we feel that it is a fit case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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