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TMI Blog2020 (5) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... e Bench, we find that there is nothing on record to suggest that any such pleadings were taken by the assessee trust before the Coordinate Bench requesting for condonation of delay and seeking registration from inception of the trust or the application seeking condonation of delay was brought to the notice of the Coordinate Bench. Where the Coordinate Bench has directed registration of the assessee trust and has not passed any specific directions regarding condonation of delay, the contention of the ld AR that since the condonation application was filed along with application seeking registration before ld CIT(Kota), the directions so passed by the Coordinate Bench should be read as if the delay has been condoned cannot be accepted. It is also not clear whether the ld CIT(E) has considered the law as applicable for application seeking registration filed before 1.06.2007 wherein the powers have been conferred on the ld CIT(E) for condonation of delay, or the amended law for application seeking registration filed on or after before 1.06.2007 wherein no such powers for condonation of delay have been conferred on the ld CIT(E). Even where it is assumed that the CIT(E) has taken c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... U/s 12AA of the IT Act before the ld. CIT, Kota. The registration was originally denied by the ld. CIT, Kota vide order dated 28.11.2007, thereafter the matter travelled to the Tribunal and then to the Hon ble Rajasthan High Court wherein vide order dated 11.02.2016, the Hon ble Rajasthan High Court remitted the matter back to the Tribunal to decide the same on merits. Thereafter, the Coordinate Bench vide its order dated 13.09.2017 in ITA No. 378/JP/2013 allowed the appeal of the assessee-trust with the following directions:- 2. We, therefore, respectfully following the judgment of Hon ble Rajasthan High Court hereby direct the ld. CIT(A) to allow the application of the assessee for registration U/s 12AA of the Act. 3. Thereafter, in pursuance of directions of the Tribunal, the ld CIT(E) vide impugned order dated 28.08.2019 has granted registration to the assesseetrust as general public utility trust and has held that the provisions of Section 11 12 of the Act shall apply with retrospective effect from 01.04.2007 i.e. from the first day of the financial year in which application for registration was filed by the assessee-trust. 4. During the course of hearing, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority covered under the term DISTRICT BOARD as specified in section 10(20)(iii). However since your subordinates do not seem to accept, we have sought the registration U/s 12(A)(a) of the IT Act. Kindly appreciate that section 12(A)(a) covers relief of the poor, education, medical relief and advancement of any other object of general public utility and UIT, Kota also applying all its receipts for the similar purposes of general public utility only under the direct control of Ministry of Urban Development. Therefore, kindly condone the delay in filling of form no. 10A. 6. It was submitted that the registration was accordingly sought from the date of the inception of the trust i.e. 09.07.1970 and given that the assessee trust was under the genuine belief and understanding that it was a local authority and covered under section 10(20)(iii), a position which was accepted by the Revenue till A.Y 2002-03 as well, it didn t apply for registration u/s 12A(a) and a condonation request was accordingly filed along with application seeking registration under 12A(a) of the Act. 7. It was submitted that the Revenue has not gone in further appeal against the order dated 13.09.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the ld. CIT(E) has duly complied with the directions of the Tribunal as well as the provisions of the Act and has granted registration w.e.f. 1st day of the financial year in which the assessee-trust has moved the application. He accordingly supported the findings and the order of the ld. CIT(E) and submitted that no interference is called for. 11. We have considered the rival contentions and perused the material available on record. The assessee trust has been granted registration u/s 12AA. The limited issue under consideration is whether such registration should be granted from the date of inception of the trust or from the first day of the financial year in which application seeking registration has been filed by the assessee trust. In this case, the assessee trust was constituted on 9.07.1970 in exercise of the powers conferred by section 9 and 13 of the Rajasthan Urban Improvement Act, 1959 and the application seeking registration was filed by the assessee trust on 28.05.2007 before the ld CIT, Kota along with a prayer seeking condonation for the delay in filing the application. In this regard, we refer to the relevant provisions of section 12A which read as under: 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing before he arrives at a conclusion that in a given matter, the delay can be condoned or not. Similar analogy will apply where the Tribunal takes up the matter and direct the registration of the Trust. 13. In the instant case, we find that the registration was originally denied by the ld. CIT, Kota vide order dated 28.11.2007, thereafter the matter travelled to the Tribunal and then to the Hon ble Rajasthan High Court which has remitted the matter back to the Tribunal to decide the same on merits. Thereafter, the Coordinate Bench vide its order dated 13.09.2017 has directed the ld. CIT(E) to allow the application of the assessee for registration U/s 12AA of the Act and in pursuance of directions of the Tribunal, the ld CIT(E) vide impugned order dated 28.08.2019 has granted registration to the assessee-trust. We thus find that directions of the Coordinate Bench were limited to grant of registration of the assessee trust u/s 12AA of the Act. The directions of the Coordinate Bench are silent in terms of condonation of delay in filing the application seeking the registration. Further, on perusal of the order so passed by the Coordinate Bench, we find that there is nothing on r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll. It is not clear from the said communication as to whether the ld CIT(E) has examined the condonation application dated 28.05.2007 and explanation so furnished by the assessee trust for the delay in filing the application. It is also not clear whether the ld CIT(E) has considered the law as applicable for application seeking registration filed before 1.06.2007 wherein the powers have been conferred on the ld CIT(E) for condonation of delay, or the amended law for application seeking registration filed on or after before 1.06.2007 wherein no such powers for condonation of delay have been conferred on the ld CIT(E). Even where it is assumed that the ld CIT(E) has taken cognizance of the assessee s application and has applied the applicable law, the aforesaid communication doesn t reflect the precise reasons as to why the explanation of the assessee seeking condonation of delay was not accepted. At most, such communication reflects the conclusion and not the reasoning and thus, doesn t satisfy the requirement of law which mandate the CIT(E) to specify the reasons in writing which helped him reach a conclusion that the explanation of the assessee seeking condonation is not acceptabl ..... 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