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2015 (12) TMI 888 - AT - Income TaxGrant of registration u/s 12AA - grievance of the assessee since the assessee has applied for registration on 18.12.2009, the CIT should have granted registration w.e.f. 1.4.2009 as per sub-clause (ii) of proviso to section 12A(1)(a) and secondly the condition imposed by the CIT for grant of registration u/s 12AA of the Act by requiring the assessee to get itself registered u/s 43(1) of the Andhra Pradesh Charitable & Hindu Religious Institutions and Endowments Act, 1987 - Held that:- As per clause (ii) of the first proviso to section 12A (1)(a) of the Act in a case where the application for registration is not filed before the commissioner before the expiry of a period of 1 year from the date of creation of the trust or the establishment of the institution, then the registration shall be granted from the first day of financial year in which the application is made. However, as per the second proviso the clause shall not apply in relation to any application made on or after the first day of June, 2007. Similarly, sub-section 2 of section 12A of the Act which was inserted into the statute from 1.6.2007 mandates that in a case where application for registration is made after the first day of June, 2007, the provisions of section 11 & 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made. Therefore, in view of the clear statutory provision as contained u/s 12A(2) of the Act which is applicable to applications for registration made after 1.6.2007 we do not find any infirmity in the order of the CIT in granting registration for the assessment year 2010-11. Therefore, assessee’s contention in this respect cannot be accepted. Requirement of registration u/s 43(1) of the Andhra Pradesh Charitable & Hindu Religious Institutions and Endowments Act, 1987 is concerned, we are not able to agree with the view of the CIT in this regard. Law is now fairly well settled that for registration u/s 12A of the Act the society is not required to be registered u/s 43(1) of the Andhra Pradesh Charitable & Hindu Religious Institutions and Endowments Act, 1987. Further, it is a fact on record that the assessee had applied for registration u/s 43(1) of the Andhra Pradesh Charitable & Hindu Religious Institutions and Endowments Act, 1987 before the Assistant Commissioner, Endowments Department. However, assessee’s application for registration was not acted upon and the assessee was informed that as there is a ban on new registrations, assessee’s application cannot be accepted. That being the case, when the authorities are not granting registration under the Andhra Pradesh Charitable & Hindu Religious Institutions and Endowments Act, 1987, registration u/s 43(1) cannot be made a condition precedent for getting registration u/s 12AA of the Act. Assessee cannot be expected to perform an impossible act. Non-registration u/s 43(1) of the Andhra Pradesh Charitable & Hindu Religious Institutions and Endowments Act, 1987 will not be a bar for the assessee in getting exemption u/s 11 of the Act when there is no such restriction put u/s 11, 12 & 13 of the Act. In view of the aforesaid we direct the CIT to grant registration u/s 12AA of the Act to the assessee without insisting upon registration u/s 43(1) of Andhra Pradesh Charitable & Hindu Religious Institutions and Endowments Act, 1987.
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