Bar Association registration denied under sections 12AA/12AB for failing mandatory Gujarat Public Trust Act registration under Rule 17A(2)(c)

The ITAT Surat dismissed the assessee's appeal challenging denial of registration under sections 12AA/12AB. The Bar Association failed to obtain mandatory registration under Gujarat Public Trust Act or any other statutory provision as required by Rule 17A(2)(c). The tribunal held that furnishing certified copy of registration with registrar of Companies, societies, or Public Trust is a condition precedent for Form 10A/10AB applications. The CIT(E) properly denied registration as the assessee failed to fulfill primary statutory requirements, making the application premature for examining objects and activities.

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Issues Involved:
1. Delay in filing the appeal.
2. Rejection of application for registration under section 12AA of the Income Tax Act, 1961.
3. Compliance with Rule 17A and Section 12AA requirements.

Summary:

1. Delay in Filing the Appeal:
The appeal was filed with a delay of 26 days. The assessee attributed this delay to the unavailability of some office bearers due to professional engagements, which delayed the decision-making process. The Tribunal found no mala fide or deliberate delay and condoned the delay, allowing the appeal to be heard on merit.

2. Rejection of Application for Registration under Section 12AA:
The assessee, a Bar Association, applied for registration under section 12AA on 09.02.2018. The Commissioner of Income Tax (Exemptions) [CIT(E)] rejected the application on 28.12.2018, citing the failure to submit a copy of the registration certificate evidencing the creation of the trust/institution. The Tribunal had previously set aside this order and directed the CIT(E) to examine the objects and activities of the assessee and pass a speaking order.

3. Compliance with Rule 17A and Section 12AA Requirements:
Upon reconsideration, the CIT(E) again rejected the application, stating that the assessee failed to provide a certified copy of registration with any competent authority, such as the Charity Commissioner or Registrar of Societies. The CIT(E) emphasized that Rule 17A and Section 12AA require such documentation to establish the creation of a trust or institution. The Tribunal upheld this decision, noting that the assessee did not fulfill the primary condition of registration under any statutory authority, making the application premature.

Conclusion:
The Tribunal dismissed the appeal, agreeing with the CIT(E) that the assessee did not meet the necessary conditions for registration under section 12AA. The Tribunal granted the assessee the liberty to apply for fresh registration upon complying with the statutory registration requirements. The appeal was dismissed, and the order was pronounced in open court on 12/10/2023.

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