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TMI Blog2010 (1) TMI 656X X X X Extracts X X X X X X X X Extracts X X X X ..... . Condonation of delay was also sought raising the following pleas - (i) There were no activities for Trust upto and including financial year 2003-04. (ii) Corpus donations were collected only from financial year 2004-05. (iii) Board of Trustees consisting of 33 individuals were oblivious of requirement as per tax laws. (iv) They were under the belief that corpus donations were not taxable, (v) Only when it consulted a Chartered Accountant in March, 2006 that it became aware of the requirement of registration under section 12AA of the Act. (vi) An application was made in March, 2006 for registration, which was rejected, forcing the assessee to file a revised application in September, 2006. (vii) If the corpus donations we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nably aware of the statutory provisions. (vii) Collecting of corpus donations and earning interest cannot be considered as charitable activities in view of the decision of Hon'ble Punjab A Haryana High Court in the case of Atnan Shiv Wandir Trust v, CIT reported in 296 ITR 415 and that of Hon'ble Kerala High Court in the case of Self Employers Service Society v. CIT reported in 247 ITR 18. 6. Now before us, the Ld. A-R. submitted that the condonation application was rejected without any rhyme or reason, but on the other hand taking certain presumptions on corpus donations received by the assessee. According to him, there was no dispute that objects of the assessee-trust were all charitable in nature, and it had expended sums for charity a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom an earlier date. So, the question is whether reasons given by the assessee, for the Commissioner was not good enough to have reached a satisfaction that delay could not be condoned. It goes without saying that such satisfaction "has to be reached objectively and not subjectively". Reason given by the assessee is ignorance of law, not having any worthwhile receipts in the initial years, and a belief that corpus donations were not taxable. CIT disbelieves it on a premise that if they were aware about corpus donations being exempt, they would have been aware about the need for registration as well. CIT's finding that only donations receipts were there in financial years 2004-05 and 2005-06 and no spendings for charity, and hence assessee w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e always to be viewed in the perspective of the situation and status of the party pleading for it, and no straight jacket formula could be adopted. Where delay if not condoned, would lead to miscarriage of justice, and a toss to the public or a section of the public, who in this case, were the beneficiaries, the reasons given have to be seen, in our opinion from a wider canvass. In any case, knowledge of all statute laws cannot be presumed as held by Hon'ble Apex Court in the case of Motilal Padampet Sugar Mills Co. Ltd. v. State of UP. reported in 118 ITR 326. Therefore, we are of the opinion that the delay ought to have been condoned and assessee granted registration from the date of inception. 9. Before parting, it would be inappropriat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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