Prospective effect of bye-law rectification bars retrospective registration under income-tax law.

Amendments or rectification of a society's bye-laws do not operate retrospectively for registration under the Income-tax Act. The Court applied the principle that a rectified instrument takes effect only from the date of rectification, so the amended governing document cannot relate back to an earlier execution date for fiscal or registration purposes. The distinction sought between a trust and a society was rejected because the controlling rule was the prospective operation of the rectification itself. As a result, the entity could not claim registration from the earlier date based on the amended bye-laws.

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Issues: Whether amendments or rectification made to the society's bye-laws could operate retrospectively for the purpose of granting registration under Section 12AA of the Income-tax Act, 1961.

Analysis: The application for registration was considered in the light of the principle that a rectified instrument takes effect from the date of rectification and not from the original date of execution. The Court applied the rule that amendments to foundational governing documents do not relate back retrospectively for fiscal or registration purposes. The distinction drawn by the Tribunal between a trust and a society was rejected, as the controlling principle was the prospective operation of the rectification itself.

Conclusion: The amendments to the bye-laws did not have retrospective effect and could operate only prospectively. The assessee was not entitled to registration from the earlier date sought on the basis of the amended bye-laws.

Ratio Decidendi: A rectification or amendment to the foundational document of a charitable entity operates prospectively from the date of such rectification and cannot be given retrospective effect for granting registration under the income-tax law.

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