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2021 (2) TMI 815 - HC - Income TaxRegistration u/s 12AA - Rectification/amendments made to the bye-laws of the Society - Operate prospectively OR retorspectively while granting registration under Section 12AA - HELD THAT:- CIT, after remand, after taking into consideration the case of both sides, rejected the case of the assessee following the judgment of the Hon'ble Supreme Court of India in the case of Commissioner of Income-Tax Vs. Kamla Town Trust [1995 (11) TMI 1 - SUPREME COURT] and held that the rectification shall not have retrospective effect and would operate prospectively from the date when the rectification saw the light of the day - Tribunal erroneously allowed the appeal observing that the order passed by the Hon'ble Supreme Court pertains to a Trust and the same is not applicable to the assessee's case which is a Society. The finding of the Tribunal cannot be sustained for the reason that the Tribunal should have only followed the principle laid down by the Hon'ble Supreme Court to the effect that the rectification shall not have retrospective effect and would operate prospectively from the date on which such rectification saw the light of the day. The ratio laid down by the Hon'ble Supreme Court squarely applies to the facts and circumstances of the present case. The rectification/amendments made to the bye-laws of the Society would only operate prospectively while granting registration under Section 12AA of the Income Tax Act. Following the ratio laid down by the Hon'ble Supreme Court in the judgment reported in Commissioner of Income-Tax Vs. Kamla Town Trust], cited supra, the order passed by the Income Tax Appellate Tribunal is liable to be set aside and the questions of law 1 and 2 are decided in favour of the Revenue – appellant.
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