Retrospective Section 12AA registration barred where post-01.06.2007 applications operate prospectively under the amended income-tax scheme.

Registration under Section 12A is a condition precedent for exemption under Section 11, and the post-01.06.2007 statutory scheme under Section 12A(2) restricted applications to prospective operation from the assessment year immediately following the financial year of application. Section 12AA did not create a separate power to grant retrospective registration, except for the limited pending-assessment situation then contemplated by the proviso, which was not present here. The absence of an express bar in Section 12AA could not override the amended scheme. Retrospective registration was therefore impermissible, and the Tribunal's order allowing it was set aside.

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Issues: Whether registration under Section 12AA of the Income-tax Act, 1961 could be granted retrospectively for an application made after 01.06.2007.

Analysis: Registration under Section 12A is a condition precedent for exemption under Section 11, and the statutory amendments inserted Section 12A(2) with effect from 01.06.2007 to provide that applications made on or after that date would operate only from the assessment year immediately following the financial year in which the application was made. The amended scheme, read with the procedure under Section 12AA, left no scope for retrospective grant of registration except in the limited situation contemplated by the proviso then in force, namely pending assessments, which was not the factual position in this case. The absence of an express prohibition in Section 12AA did not confer power to grant retrospective registration contrary to the statutory scheme.

Conclusion: Retrospective registration under Section 12AA could not be granted, and the Tribunal's order granting such retrospectivity was set aside. The question of law was answered in favour of the Revenue.

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