2018 (5) TMI 1697 - AT - Income Tax

Tax Tribunal Grants Retroactive Registration: Commissioner to Rectify Date & Issue Certificate

Raghavdas Educational & Medical Foundation and Research Centre Versus The Commissioner of Income Tax (Exemption), Pune

The Tribunal allowed both appeals, directing the Commissioner of Income Tax to rectify the registration date and issue the registration certificate in ... Deemed registration u/s 12AA - non granting of registration from original date of application for registration made u/s 12A - Held that:- Once the assessee has made an application under section 12A of the Act as on 25.03.2002 which have not been disposed off, would imply that deemed registration has been granted to the assessee from the year in which the application has been made - See CIT Kanpur Vs. Society for Promotion of Education(2016 (2) TMI 672 - SUPREME COURT) - as directed to register the trust w.e.f. the date of filing application 25.03.2002 and issue certificate in this regard - Decided in favor of assessee. Issues Involved:1. Non-granting of registration under section 12AA of the Income Tax Act from the original date of application.2. Discrepancy in the registration date granted by the Commissioner of Income Tax.3. Interpretation of the deeming provision for grant of registration under section 12A of the Act.4. Impact of pending application for registration on the deemed registration status.5. Consideration of the explanation provided by the assessee in the registration process.6. Compliance with the legal requirement for registration under section 12AA of the Act.Issue 1: Non-granting of registration under section 12AA from the original application dateThe case involved two appeals where the assessee challenged the order of the Commissioner of Income Tax regarding the grant of registration under section 12AA of the Act. The main contention was the non-granting of registration from the original application date. The Tribunal analyzed the facts, noting that the assessee applied for registration in 2002 but was granted registration from the financial year 2016-17 onwards. The Tribunal referred to the deeming provision for grant of registration and held that registration should be granted from the date of the original application in 2002, as per legal precedents. The Tribunal directed the Commissioner to issue the registration certificate accordingly.Issue 2: Discrepancy in the registration date grantedThe Tribunal observed that the Commissioner had granted registration from the financial year 2016-17 onwards, contrary to the application date of 2002. The Tribunal emphasized the importance of granting registration from the date of the original application to align with legal principles and directed the Commissioner to rectify the registration date to comply with the law.Issue 3: Interpretation of the deeming provision for grant of registrationThe Tribunal interpreted the deeming provision for grant of registration under section 12A of the Act, emphasizing that if an application is not disposed of within six months, registration is deemed to be granted from the application date. The Tribunal relied on legal precedents to support this interpretation and directed the Commissioner to grant registration from the original application date in 2002.Issue 4: Impact of pending application on deemed registration statusThe Tribunal considered the impact of the pending application for registration on the deemed registration status. It noted that since the application from 2002 was not rejected, registration was deemed to be granted to the assessee from that year. The Tribunal directed the Commissioner to issue the registration certificate in line with this understanding.Issue 5: Consideration of the assessee's explanationThe Tribunal highlighted that the Commissioner had failed to consider the explanation provided by the assessee regarding the registration process. It emphasized the need for the Commissioner to consider all relevant information and directed the issuance of the registration certificate based on the original application date.Issue 6: Compliance with legal requirements for registrationThe Tribunal emphasized the legal requirement for registration under section 12AA of the Act and directed the Commissioner to register the trust from the date of the original application in 2002. It stressed the importance of adhering to legal principles and affording the assessee a fair opportunity in the registration process.In conclusion, the Tribunal allowed both appeals, directing the Commissioner to rectify the registration date and issue the registration certificate in compliance with the law and the original application date in 2002.