TaxTMI 
TaxTMI 
2021 (3) TMI 115
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....l, unjustified, arbitrary and against the facts of the case. Relief may please be granted by directing ld. CIT(Exemptions) to grant registration w.e.f. A.Y. 2020-21. 3. In ITA No. 304/JP/2020, the assessee has taken the following sole ground of appeal:- "1. In the facts and circumstances of the case and in law the ld. CIT(Exemptions), Jaipur has erred in not granting approval u/s 80G w.e.f. A.Y. 2020-21 and granting the same only w.e.f. 2021- 22 ignoring the fact that the application for grant of approval was moved on 05.02.2020 making the assessee trust eligible for approval w.e.f. 2020-21. The action of the ld. CIT(Exemptions) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by directing ld. CIT(Exemptions) to grant approval w.e.f. A.Y. 2020-21. 4. During the course of hearing, the ld. AR submitted that both these appeals relate to grant of approval U/s 12AA and 80G of the Act respectively. It was submitted that the ld. CIT(E) has granted approval w.e.f. A.Y. 2021-22 instead of A.Y. 2020-21 which is the limited matter under dispute and the subject matter of the present appeals. 5. It was submitted that in the ins....
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.... 12AA shall not be cancelled merely on the ground of violation of proviso to section 2(15) of the Act. 8. In support, reliance was placed on the order of Hon'ble Rajasthan High Court in the case of CIT vs. Jaipur Stock Exchange [1996] 217 ITR 101 wherein the order of Tribunal dated 27-09-1991 is referred in which it was held that if a belated application is admitted by the Commissioner in exercise of his discretion under the proviso to section 12A(a), it would be as good as an application moved before 1-7-1973 or before the expiry of one year from the date of creation of the trust or the establishment of the institution, whichever is later. If the Commissioner decides to exercise his discretion for granting registration, he cannot put a rider on the effect of his order that it would be effective from a particular date. 9. Reliance was also placed on the judgment of Hon'ble Madras High Court in the case of New Life in Christ Evangelistic Association (NLC) vs. CIT [2000] 246 ITR 532. In the said order, at para 7, it was held that the language of the section does not show that in order to be able to get registration under section 12A, there is necessity of first establishing as ....
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....he approval shall be effective from and in the instance case, once the Ld. CIT(E) was satisfied about the objects of the assessee-trust, not being commercial in nature, he has granted the approval u/s 12AA and 80G(5)(vi) from the said date. He accordingly supported the orders and the findings of the ld. CIT(E). 13. We have heard the rival contentions and perused the material available on record. Section 12AA provides that the ld. CIT(E) on receipt of an application seeking registration of the trust u/s 12A(1) of the Act shall call for such documents or information from the trust as he thinks necessary in order to satisfy himself about the objects of the trust, the genuineness of the activities of the trust and the compliance of such requirements of any other law for time being in force by the trust as are material for the purposes of achieving its objects, and after satisfying himself about the objects of the trust, the genuineness of the activities and compliance of other law as so specified and material for achievement of its objects, shall pass an order in writing registering the trust or where he is not satisfied passed an order in writing refusing to register the trust. The....
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....icer as on the date of such registration and the objects and activities of such trust remain the same for such preceding assessment year. 15. We, therefore, find that under the erstwhile provisions in respect of any application made before the 1st day of June, 2007, where there has been a delay in filing the application seeking registration, the ld. CIT(E) is required to recorded in writing his satisfaction that person seeking registration was prevented from making the application before the expiry of period of one year from the date of creation of the trust for sufficient reasons and only in such a scenario, where such satisfaction has been recorded, the trust was granted registration from the date of creation of the trust. In the alternate scenario where the ld. CIT(E) was not so satisfied about the sufficiency of the reasons for delay in filing the application, registration was effective from 1st day of the financial year in which the application is made. However, under the amended provisions in respect of applications filed on or after 1st day of June, 2007, the ld. CIT(E) is no more required to record any such satisfaction or dissatisfaction regarding the delay in filing th....