Section 12A delay condoned where exemption issue arose only after section 11 claim was denied.

Delay in filing an application for registration under section 12A was treated as explainable where the assessee had long been regarded as engaged in scientific research and had reason to believe its income remained exempt under section 10(21). Registration became relevant only after exemption under section 11 was claimed and denied for lack of such registration, so the delay was not assessed as a 34-year default. Sufficient cause was found at least for the period after the first return for assessment year 2004-05, and the application was directed to be considered on merits from 1 April 2000.

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Issues: Whether the delay in filing the application for registration under section 12A of the Income-tax Act, 1961 should be condoned and the application considered on merits from 1 April 2000.

Analysis: The assessee had historically been notified for scientific research activities and had reason to believe that its income remained exempt under section 10(21) of the Income-tax Act, 1961 while it was treated as a scientific research association under section 35(1)(ii). Registration under section 12A became relevant only after exemption under section 11 was claimed and denied for want of such registration. In those circumstances, the delay could not be treated as a delay of over 34 years, and the period after filing of the first return for assessment year 2004-05 was supported by sufficient cause.

Conclusion: The delay was condoned and the application for registration under section 12A was directed to be dealt with on merits from 1 April 2000.

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