MURSHIDABAD DISTRICT DIGAMBER JAIN SAMAJ,MURSHIDABAD vs. CIT KOL - XXI,KOLKATA, KOLKATA

The assessee in the present case is a Society, which was established on 29.06.2005 under the West Bengal Society Registration Act. It filed an application for registration under section 12AA before the ld. CIT, Kolkata-XXI on 27.07.2012. Since the said application was filed by the assessee beyond the period of one year from its creation and there were no reasons given for the delay in filing it, the ld. CIT rejected the same. He also held that as per the aims and objects enumerated in the I.T.A. No. 386/KOL./2013 Page 2 of 3 Memorandum of Association, the assessee-Society was established for the welfare of the people especially for the Jain Community in Murshidabad and it was, therefore, hit by the provisions of section 13(1)(b) of the Act. He held that the assessee-Society, therefore, was not eligible for registration under section 12AA on this ground also. Aggrieved by the order of the ld. CIT, the assessee has preferred this appeal before the Tribunal.

We have heard the arguments of both the sides and also perused the relevant material available on record. As pointed out by the ld. Counsel for the assessee, the relevant clause (a) of sub-section (1) of section 12A prescribing the period of one year for filing the application from the creation of the Trust or the establishment of the Institution is not applicable in relation to any application made on or after the 1st day of June, 2007 as per the 2nd proviso and as per sub-section (2) of section 12A, where an application has been made on or after the 1st day of June, 2007, the provisions of sections 11 & 12 shall apply in relation to the income of such Institution from the assessment year immediately following the financial year in which such application is made. He has contended that the ld. CIT, therefore, ought to have considered the application of the assessee for registration under section 12AA filed on 27.07.2012 as per section 12A(2) of the Act and not under section 12A(1)(a) of the Act and this position clearly evident from the relevant provisions of the law as amended w.e.f. 01.06.2007 is not disputed even by the ld. D.R. The ld. D.R. has also not been ask dispute or controvert the contention raised by the ld. Counsel for the assessee that if there is any violation within the purview of section 13(1)(b) referred to by the ld. CIT in his impugned order, the same is to be considered at the assessment stage for the purpose of allowing the claim of the assessee for exemption under section 11 and the same cannot be a ground for rejection of registration to the assessee under section 12AA of the Act. It is thus clear that the impugned order passed by the ld. CIT rejecting the application of the assessee for registration under section 12AA is not in accordance

I.T.A. No. 386/KOL./2013 Page 3 of 3 with the relevant provisions of the law. We, therefore, set aside the same and remit the matter back to him to dispose of the application of the assessee for registration under section 12AA afresh in accordance with law after giving the assessee an opportunity of being heard.