9911796707
TMI Blog2020 (5) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 12A of the Act. In the impugned order, registration is granted by the Ld. CIT(E) with retrospective effect from 01.04.2007 only instead of granting registration since inception of the trust." 2. Briefly the facts of the case are that the assessee trust filed an application in Form 10A on 28.05.2007 for registration 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13 of Rajasthan Urban Improvement Act, 1959 for the purpose of improvement of Urban Area of Kota Town without any profit motive. The entire Revenues of the Trust feed the objective of advancement of General Public Charity under direct control of Government of Rajasthan. We are still a local authority 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of section 12AA of the said Act is not possible." 10. It was submitted by the ld CIT/DR that where the assessee was duly informed that as per the provisions of the Act, the retrospectively effect/ application of the provisions of Section 12AA of the Act is not possible, 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 appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of section 11 and 12 shall apply in relation to income of such trust from the first day of the financial year in which the application is made by the trust. In both cases, the ld CIT therefore has to give reasons and record his reasoning in writing 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I am directed to inform you that as per the provisions of Income tax Act, retrospective effect/application of the provisions of section 12AA of the said Act is not possible." We find that the said communication dated 14.02.2019 is not clear at all. 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 concl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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