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2009 (8) TMI 841 - ITAT MUMBAIGrant registration u/s 12AA - delay of more than 52 years in filing the application for registration u/s 12A(a) - unsatisfactory explanation - registration to be granted with prospective effect? - The trust is registered under Bombay Public Trust Act - whether objects of the Trust are for religious and charitable purposes? - trust has awakened only after Department’s advertisement in media that registration of trust will be effective only for the following assessment years HELD THAT:- In Surya General Traders [1997 (3) TMI 596 - ANDHRA PRADESH HIGH COURT] observed and held that When an appellant has a good case on merits, defeat of his claim on technical plea of limitation would ultimately lead to injustice. State should not stand by a technical plea of limitation of the citizen’s case was otherwise meritorious. In Kadur Vidhya Pratishtana v. CIT [2006 (5) TMI 422 - ITAT BANGALORE], the Tribunal after considering 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 should not be made applicable in respect of the Society from its inception. Applying the ratio of the above decisions to the facts of the present case we are of the view that since the objects of the Trust and genuineness of its activity that it is for religious and charitable purposes are not in doubt inasmuch as the registration was granted with prospective effect from 1-4-2007 and the reasons for delay for filing of the application were not found to be false or untrue, the delay is condoned and registration is granted to the assessee with effect from 1-7-1973. Accordingly, the grounds taken by the assessee are allowed. Therefore, Appeal is assessee's favour.
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