Tribunal Condones Delay, Grants Appellant Society IT Registration from 1973 Citing Charitable Objectives and Genuine Fund Use.

The Tribunal ruled in favor of the appellant society, condoning the delay in filing for registration under section 12A(a) of the IT Act. The Tribunal acknowledged the society's charitable objectives and the genuine use of its funds, attributing the delay to ignorance and lack of awareness among its office bearers. Consequently, the Tribunal reversed the DIT's decision, granting the registration effective from April 1, 1973, and allowed the assessee's appeal.

---

---

Issues involved:
The appeal concerns the condonation of delay in filing an application for registration under section 12A of the Income Tax Act.

Summary:

Issue 1: Condonation of Delay
The appellant, a society, sought registration under section 12A(a) of the IT Act, with a delay of 43 years, 8 months, and 14 days. The Director of IT (Exemption) (DIT) granted registration but from a backdated period, not condoning the delay. The appellant argued that sufficient reasons existed for the delay, citing ignorance of the law due to the society's formation before the enactment of the IT Act, 1961. The appellant contended that the office bearers, primarily teachers, lacked awareness of IT law requirements, believing their exemption akin to educational institutions. The appellant emphasized the societal objectives and the genuine nature of its activities. The counsel urged for a liberal exercise of jurisdiction in condoning the delay, citing relevant legal precedents.

Issue 2: Department's Position
The Departmental Representative contested the appellant's claim, asserting no reasonable cause for the delay in filing the registration application. Emphasizing compliance regardless of the society's non-profit and non-political nature, the representative argued against condoning the delay. Legal precedents were cited to support the Department's position, highlighting the need for the appellant to establish exemption conditions and the real character of receipts.

Judgment
After considering the arguments and legal precedents, the Tribunal found in favor of the appellant society. Recognizing the society's registration before the relevant provisions, the Tribunal accepted the explanation for the delay, attributing it to ignorance and lack of awareness among successive office bearers. The Tribunal noted the charitable nature of the society's aims and the genuine utilization of funds. Concluding that sufficient reasons existed for the delay, the Tribunal reversed the DIT's decision and condoned the delay from April 1, 1973. The appeal of the assessee was allowed.

---