9911796707
TMI Blog2008 (9) TMI 954X X X X Extracts X X X X X X X X Extracts X X X X ..... ncorporated under National Law School of India Act (Karnataka Act No.22) of 1986. Accounting to the Preamble to the aforesaid Act, the Bar Council of India had created a public charitable trust called the Bar Council of India Trust whose object, inter alia, was the establishment, maintenance and running of a model law college in India. The aforesaid trust initially registered a society named and styled as the National Law School of India Society under the Karnataka Societies Registration Act, 1960. The object of the society was to develop the teaching and research in legal studies and it had powers to award degrees and diplomas. The society established the National Law School of India in Bangalore and the law school was functioning under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the funds of the Law School. The fund shall include contributions or grants made by the State Governments or the Central Government or the University Grants Commission, Bar Council of India, State Bar Councils, any bequests or donations or endowments, amounts received as fees and charges etc. The fund shall be kept in a scheduled bank and can be invested only in such securities as are authorized under the Indian Trusts Act. The annual accounts of the school shall be subject to audit. 4. It would appear that the assessee was not required to submit any returns of income under the Income-tax Act in view of the provisions of section 10(22) of the Act, which provided that any income of an university or other educational institution exis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order on 30.8.2006 granting registration to the assessee as a public charitable trust with effect from 1.4.2005 in accordance with the provisions of clause (ii) of the first proviso to section 12A(1)(a) of the Act. It is necessary to mention here that in accordance with the first proviso, if an application for registration is delayed beyond the period prescribed by clause (a), it is open to the DIT(Exemptions) to condone the delay in making the application if he is satisfied that there was sufficient reason for the delay and grant registration from the date of the creation of the institution or to grant registration only from the first day of the financial year in which the application for registration was made, if he is not satisfied that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontentions, we are of the view that the assessee should be granted registration u/s. 12A from 1.4.1999 as prayed for. There is no dispute that the assessee is a public charitable institution and this has also been recognized by the DIT(Exemptions) in his order dated 30.8.2006. The only question is whether there were sufficient reasons for the delay in filing the application for registration. The plea of the assessee both before the DIT(Exemptions) and before us is that it was under the bona fide belief that even after the introduction of section 10(23C)(iiiab) of the Act with effect from 1.4.1999, its income was exempt under the Income-tax Act since it also satisfied the further condition that it should be wholly or substantially financed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could be an issue raised as to whether it can be said to be a university wholly or substantially financed by the Government. In the correspondence with the DIT(Exemptions) in connection with the application seeking registration with effect from 1.4.1999, the assessee has stressed that in accordance with clause (23) of the Schedule to the Act under which it was constituted, its funds came from contribution or grants made by the State Governments, Central Government as well as the University Grants Commission, besides contributions made by the Bar Council of India, State Bar Councils, etc. It was thus pleaded before the DIT(Exemptions) that even though the assessee would qualify for exemption u/s. 10(23C)(iiiab) with effect from 1.4.1999, st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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