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| The Tax Publishers2020 TaxPub(DT) 3945 (Ind-Trib) INCOME TAX ACT, 1961
Section 12AA read with section 11
Where assessee could not find copy of registration certificate claimed to be issued in year 1973 and filed fresh application for grant of registration, CIT(E) was not justified in granting registration under section 12AA with prospective effect because assessee was enjoying benefit under section 12A and under section 11, as it was running for charitable purpose, thus registration was to be granted with retrospective effect from 1973.
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Charitable trust - Registration under section 12AA - Grant of registration with prospective effect, whether justified -
Assessee was registered under section 12A with effect from 13-8-1973 and at that point of time Form No. 10A was filed. Since assessee could not find copy of registration certificate claimed to be issued in year 1973 under section 12A(a), it made request before CIT(E) to issue a duplicate copy of the registration certificate. Assessee was informed that old records of trust registration were not available with revenue department. Assessee filed fresh application for registration under section 12A but initially registration was denied. Thereafter, while appeal of assessee was pending before Tribunal, CIT(E) granted registration to trust with prospective effect from assessment year 2019-20. Assessee's main grievance was that registration certificate should be with effect from 13-8-1973 since assessee trust was consistently running for charitable purposes. Held: All documents were sufficient enough to prove that claim of assessee being registered under section 12A was a charitable trust since 13-8-1973 had sufficient merit. Revenue failed to rebut these facts. There was no dispute to fact that assessee trust was enjoying benefit under section 12A as a charitable trust and other benefits available to charitable trusts under section 11 since it was running for charitable purpose. Assessee trust should be granted the registration under section 12AA with effect from 13-8-1973 in place of the registration granted from assessment year 2019-20 onwards. Once CIT(E) granted registration certificate under section 12AA with effect from 13-8-1973, assessee was at liberty to move application before AO for rectification of the assessment orders for various assessment years in order to avail the benefit of section 11 available for charitable trust registered under section 12AA, so that AO could decide accordingly.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, INDORE BENCH
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