TMI Blog2004 (6) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2000. In its application for registration and in its application for condonation of delay dt.6th Feb., 2001, it was admitted by the appellant-society that there was delay in filing the application on account of several reasons and therefore it was requested to DIT that the delay in filing the application for registration be condoned. DIT in his order dt.23rd Aug., 2001though granted the registration but granted the same w.e.f.1st April, 2000. Delay involved, as per DIT, was 43 years 8 months and 14 days which was however not condoned as, according to the DIT, nothing was bona fide in law which was not done with due diligence. It is against this order of DIT refusing the condonation of delay, the appellant-society felt aggrieved and has co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the detailed submissions on its objects and nature were made in the application for condonation of delay filed at PB 44-45 and its memorandum of association (PB 4 to 7) and in the application of registration at PB 2. It was further argued by Mr. Gupta that there were sufficient reasons for making the application for registration under s. 12A in February, 2001 i.e. belatedly. The society was registered in year 1957 i.e. much before the enactment of IT Act, 1961. Therefore, the society could not make itself aware to file any application for registration under the 1961 Act. Voluntary contributions received by a trust or society were also exempt under the old Act of 1922. Further submitting, learned counsel pleaded that office bearers of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for not moving application for registration. Since there was no profit motive of the society and all the grants received were the specific grants to be used for the specific purpose, the society remained under the bona fide belief that nothing under the IT Act concerns them. When notice under s. 148 was issued, the society went into tizzy and tried to dig past records of number of years to verify inBiharwhether any such statutory formality was ever complied with. When nothing of this sort was found, it applied for registration under s. 12A on6th Feb., 2001. It was argued that the registration had been granted by DIT but w.e.f. 1st April, 2000, meaning thereby that its aims and objectives were found charitable and its activities were found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ously by such society. According to him, appellant-society does not have any explanation for filing the application for registration so belatedly. However, he accepted that the delay in filing the application was not 43 years 8 months and 14 days as mentioned by DIT in his order but the delay has to be computed from1st April, 1973. According to him, if the appellant did not comply with requirement of law by filing the application for registration in time, it does not have any option but not to get registration from the back date. He relied upon the decision of Supreme Court reported in Aditanar Educational Institution Etc. vs. Addl. CIT (1997) 139 CTR (SC) 7 : (1997) 224 ITR 310 (SC) for the proposition that overall view has to be taken. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant was registered in the year 1957 i.e. at a time when IT Act, 1961 and its ss. 11 and 12 were not there. Therefore, there is no reason to disbelieve the plausible explanation of the appellant that the office bearers of the appellant-society could not have had any reason to see the applicability of the provisions of such non-existing enactment or its sections or otherwise take into account taxability aspect of the appellant-society. Requirement of registration was however brought by Finance Act, 1972 w.e.f1st April, 1973. Explanation of the appellant-society that when the office bearers and their successors were not conscious as to the application of taxability aspect under the IT Act, 1961, there was possibility and plausibility for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is aspect of the matter also cannot be lost sight of that there was no profit motive of the appellant-society and office bearers of the society are out of the primary teachers only with no knowledge of the nuances of IT law. Case laws cited by the learned Senior Departmental Representative have been considered by us and none of them applies to the facts of the present case. Legal propositions emanating from these decisions cannot be differed with but what is important in the present case is whether explanation of the delay in filing the registration application was for good and sufficient reasons which is a matter of fact to be deduced from the facts and circumstances of the present case and which we find that these exist in this case. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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