TMI Blog2022 (8) TMI 1229X X X X Extracts X X X X X X X X Extracts X X X X ..... ted from records, the assessee has changed its address of the Trust and also informed to the department. But it is seen that the assessee has not pursued the matter immediately after filing its application and moved with the CIT office after a long period of time. Memorandum of Trust is not before us, however the main object of the assessee Trust is to render services to Exporters and Importers. It is not acceptable that how the assessee Trust is so negligent in not claiming its legal rights. It is appropriate to quote at this stage the legal maxim VIGILANTIBUS, NON. DORMIENTIBUS, JURA SUBVENIUNT which means, law will help only those who are vigilant. Law will not assist those who are careless of his/her right. Only those persons, who are watchful and careful of using his/her rights, are entitled to the benefits of law. Thus law confers rights on persons who are vigilant of their rights. We find that the assessee Trust is not vigilant in its legal rights. Amendments taken place in section 12A which is applicable up to 30.05.2007 and section 12AA which is applicable up to 31.03.2021 and present section 12AB applicable from01.04.2021. Considering the various amendments taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provide services to Exporters and Importers. The assessee Trust made an application for registration u/s. 12A(a) of the Income Tax Act in Form No. 10A to the Ld. CIT, Vadodara on 20.09.1996. The same was acknowledged by the dispatch clerk of the office of CIT, Baroda. However, there was no response from the office of the Ld. CIT on the application filed in Form No. 10A for granting registration u/s. 12A(a) of the Act for long time. 2.2. Therefore the assessee Trust sent a letter dated 01.11.2001 to the Ld. CIT, Vadodara informing that no action against the application made, however enclosed photocopy of all the documents submitted in 1996, for ready reference and requested to do the needful. This letter was acknowledged with Tapal Seal by the office of the Ld. CIT on 02.11.2001. One more reminder was made on 12.10.2002, which was received by the office of the Ld. CIT on 17.10.2002. The assessee vide letter dated 15.11.2013 submitted to the office of the Ld. CIT enquiring about the Certificate of Registration granted u/s. 12AA of the Act. The assessee was advised by ITO(Technical), CIT-1 office to submit copy of the original application filed on 20.09.1996. On furnishing all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d supplied copy of application dtd. 20.09.1996. Therefore, the Trust should have been grated registration from the first date of application Le. 20.09.199 6(Asst. Year 1997-98) and not from Asst. Year 2015-16. 6) That the Petitioner Trust has now been advised that the Trust should have filed an appeal before ITAT against Order passed by C.I.T.-l vadodara U/s 12AA(l)(b)(l) of Income Tax Act Granting registration on 12.11.2014 w.e.f. Asst. Year 2015-16. 7) That the petitioner Trust, therefore, files this application to condone delay of 1379 days in filing an appeal before Hon'ble ITAT (which should have been filed earlier within 60 days from receipt of order of C.I.T. U/s 12AA(l)(b)(l) of the Income Tax Act. 8) As a Trustee of the Trust, I believe that the Trust was not properly advised by the than consultant of the Trust and hence, the Trust was prevented by sufficient reasons in not filing the appeal in time. The Trustees and myself had no knowledge of provisions relating to registration U/s 12A(a) of the IT Act as well as provisions relating to filing of appeal. The Trustees have been advised that that the issue relating to registration of the Trust U/s 12A(a) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... condoned. The assessee further stated the Hon ble Gujarat High Court judgment in the case of CIT (exemption) vs. Addor Foundation will not be applicable to the present facts. Since the CBDT Instruction No. 16 of 2015 is clearly applicable, which provides CIT (exemption) to pass order u/s. 12AA within prescribed time limit of six months. 3.3. The assessee also relied upon the Supreme Court judgment in the case of CIT vs. Society for Promotion of Education reported in (2016) 67 taxmann.com 264. As the present registration is granted by the Ld. CIT on 12.11.2014, the amendments made in section 12AA takes effect from 01.10.2014 is clearly applicable to the facts of the case and thereby pleaded to condone the huge delay and grant Registration from the Assessment Year 1997-98 onwards. 4. Ld. CIT/DR Shri Vijay Kumar Jaiswal and Sr. D.R. Shri Shramdeep Singh appearing for the Revenue submitted that in the previous hearing the Bench directed to verify from the office of the CIT, office records the claim of the assessee, whether the registration has been granted based on application dated 13.09.1996 or 23.06.2014 and also inform before the Tribunal with records. The Ld. D.Rs. submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not made any follow up action for the getting registration of the assessee Trust u/s. 12AA of the Act for seven years. Though the assessee being registered as a Charitable Trust with the Charity Commissioner of Baroda and Registrar of Societies in the year 1996, has not made proper steps to get it registered under the Income Tax Act. It is only in 23.02.2014, the assessee has filed an application for registration based on that, Registration was given with effect from the assessment year 2015- 16. Furthermore this present appeal is also filed with the delay of 1379 days i.e. 3 years and 284 days. 4.2. The Ld. DRs. further submitted that the reason given in the Affidavit is also that the assesse was not properly advised by the then Consultant of the Trust. Affidavit also does not specify name of that consultant and no such supporting affidavit filed by the assessee. When the main object of the Trust is to provide services to Exporters and Importers, the assessee cannot plead ignorance of law. Therefore the inordinate delay of 1379 days cannot be condoned. 4.3. Similar is the case for the Assessment Year 2010-11 wherein the assessment was completed in the absence of registra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on u/s.12A(a) of the Act. It was based on application dated 23.06.2014 filed by the assessee, Registration u/s. 12AA was granted by the Ld. PCIT on 12.11.2014 with effect from the assessment year 2015-16. As it can be seen from the letter dated 13.07.2022 produced by the Ld. D.R. which clearly states that there is no mention above application dated 13.09.1996 made by the assessee. It is also noted from records, the assesse has changed its address of the Trust and also informed to the department. But it is seen that the assessee has not pursued the matter immediately after filing its application and moved with the Ld. CIT office after a long period of time. Memorandum of Trust is not before us, however the main object of the assessee Trust is to render services to Exporters and Importers. It is not acceptable that how the assessee Trust is so negligent in not claiming its legal rights. 6.1. It is appropriate to quote at this stage the legal maxim VIGILANTIBUS, NON. DORMIENTIBUS, JURA SUBVENIUNT which means, law will help only those who are vigilant. Law will not assist those who are careless of his/her right. Only those persons, who are watchful and careful of using his/her rig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious amendments taken place in the Act, the assessee s contention of granting exemption u/s. 12A cannot be given retrospectively. The claim of exemption being a beneficial provision, the assessee ought to have acted upon and followed up with the Authorities in the manner known to law. Having kept silent for such a long period, the assessee is not eligible for the retrospective benefit. 7. In the result, the appeal filed by the assesse in ITA No. 32/Ahd/2019 with a delay of 1379 days and ITA Nos. 1775/Ahd/2017 with a delay of 1023 days are not condoned for not adducing sufficient and reasonable cause and therefore the appeals are dismissed in limine. 8. ITA No. 1776/Ahd/2017 is against the order passed u/s. 143(3), assessing the Trust as Association of Person in the absence of registration granted u/s. 12AA of the Act relating to the Assessment year 2012-13. 9. The Ld. CIT(A) has held as follows: 4. I have carefully considered the facts on record and submissions of the Id.AR. Undisputedly, the appellant trust was not registered u/s 12A/'12AA during the year under consideration since the registration was granted only from A.Y. 2015-16. I find that the Hon'ble Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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