JAMES MEMORIAL EDUCATIONAL TRUST,VISAKHAPATNAM vs. COMMISSIONER OF INCOME TAX, (EXEMPTIONS), HYDERABAD

On perusal of record, we find that there is delay of 7 days in filing both these appeals. To this effect, the assessee filed petition requesting for condondation of the said delay, wherein it was stated that during the relevant point of time, the Managing Trustee of the assessee trust was under medical treatment for viral fever and she was not able to move out. A copy of the medical certificate in this regard was annexed to the petition. It, was therefore, stated that the delay occurred due to the said cause, which is beyond her control and is not intentional. It was, therefore, prayed that the delay may be condoned and admit the appeals for hearing and adjudication.

Brief facts of the case are, the assessee-trust filed applications in Form No. 10A and Form No. 10G on 29/11/2017 seeking registration u/s 12A of the Income-tax Act, 1961 ( in short ‘the Act’) and approval u/s 80G of the Act.

Similarly, the application in Form No. 10G was also rejected. Therefore, assessee is in appeal before us in ITA no. 1717/Hyd/2017 against the rejection of application u/s 80G.

The facts for rejection of application u/s 80G are, the CIT(E) rejected the application in form No. 10G on the ground that the primary condition for approval u/s 80G is 12A registration. Since the application filed by the assessee in Form No. 10A for registration u/s 12A was rejected, the assessee cannot get approval u/s 80G.

Aggrieved by the orders of CIT(E), the assessee is in appeal before us against the rejection of 12A registration and approval u/s 80G.

Considered the rival submissions and perused the material on record. We notice that ld. CIT(E) has rejected the 12A registration with the observation that assessee has filed application for registration after 6 years without submitting valid reasons for the delay in seeking registration u/s 12A. We observe that there is no such requirement under law. The provisions of section 12A(2) are as under: ”Where an application has been made on or after the 1 st day of June, 2007, the provisions of sections 11 and 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made.” 7.1 The charitable institution may function without any 12A registration. There is no bar that only institution with 12A registration alone should function. When the assessee prefers to get registration under the Act to explore the benefits under the Act, they may prefer to get the trust registered u/s 12A. Hence, the law is very clear that where an application is made on or after 01/06/2007, the benefit u/s. 11 & 12 can be granted from the AY immediately following the PY in which such application is made.

In the result, both the appeals under consideration are treated as allowed for statistical purposes. Pronounced in the open Court on 31st July, 2019.