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TMI Blog2009 (8) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... der:- "Registration under section 12AA of the Income-tax Act, 1961 The, trust Church of Our Lady Of Grace, Papdy, Vasai, Distt. Thane-401 207 as constituted on 6-1-1955 has filed the registration application under section 12A(a) of the Income-tax Act, 1961 in the prescribed form on 21-5-2007 which is not in time (i.e., within one year from the date of creation of the trust). The trust is registered under Bombay Public Trust Act, on 20-6-1955. But no application had been filed by the trust under Income-tax Act. It is claimed that the trust is regularly filing return of income with ITO Ward-4(3), Thane. No reasonable explanation has been given for delay of more than 52 years. The trust has awakened only after Department's advertisement in m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant Trust was registered as a Public Charitable Trust on the basis of an application for registration filed in Schedule-II (vide Rule 6) of the Bombay Public Trust Act, 1950, vide application dated 6-1-1955. The Dy. Charity Commissioner, Greater Bombay Region had registered the Appellant Trust under P.T.R No. D-27 (Thane) vide certificate dated 20-6-1955. Hence, the Trust had come into existence prior to Income-tax Act, 1961. The objects of the Appellant Trust are religious and charitable. The supervision, control and administration are provided in the Church Law. Section 12A of the Income-tax Act, 1961 was brought on the statute for the first time by the Finance Act, 1972, with effect from 1-4-1973. It appears that the Appellant Trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed a Press Note appearing at page 8 of the assessee's paper book urging the Public Charitable or Religious Trust or Institutions to register under section 12AA before 1-6-2007 to entitle them to enjoy the benefits of exemption under section 11 in respect of earlier years. The Appellant Trust could not locate the Certificate of Registration under section 12AA and hence, it filed an application in Form No. 10A for registration of the Trust under section 12A(a) of the Income-tax Act, 1961 on 21-5-2007 with the Commissioner of Income-tax-III, Thane. The Office of the Commissioner of Income-tax-III, Thane issued a letter dated 14-9-2007 asking the Trustee to furnish reasons as to why the application for registration under section 12A(a) was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritable purposes. It is also not in dispute that the income of the assessee trust has been assessed at Rs. Nil for assessment year 1995-96 under section 144 of the Act, vide order dated 26-11-1996, at Rs. Nil for assessment year 1999-2000, vide intimation under section 143(1)(a) dated Nil and at Rs. Nil for the assessment year 2001-02 vide order dated 25-2-2004 passed under section 143(3) of the Act. We, further, find that the assessee on the basis of advertisement in the Newspaper namely Times of India, dated May 18, 2007, wherein it was published that "if you have not filed your application for registration within one year of your creation or establishment and want to avail of exemption for earlier years, you may file such application bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the year 1955 his predecessor must have complied with various provisions applicable to the Public Charitable Trust under the Income-tax Act, 1961, has also explained the cause for delay in submitting the application within time. However, the ld. CIT rejected the assessee's application holding "unsatisfactory explanation" for submission of delay. In our view the rejection of the reasons of delay as "unsatisfactory explanation" is not a reasoned order. It was necessary for the Commissioner to administrate as to why the reasons submitted by the assessee were not satisfactory. It is clear from the impugned order that insofar as the entitlement to registration under section 12A is concerned the same has been granted though with prospective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spective effect from April 1, 1993. The eligibility of the petitioner having thus been concluded, it was necessary that cogent reasons were assigned to indicate why the reasons furnished by the petitioner were not satisfactory." (p. 342) 9. In Surya General Traders v. CTO [2003] 133 STC 388, 389 (AP) it has been 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." 10. In Kadur Vidhya Pratishtana v. CIT [2007] 15 SOT 75 (Bang.), the Tribunal after considering the various decisions including the decision in Society of Divine Provi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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