2026 (4) TMI 567

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....cial intercourse among the members, (iii) to maintain charitable institutions for Tamilians to afford facilities for physical, moral, social and educational improvement of its members and (iv) to help the industrial and economic advancement of Tamilians. 2. An application was filed by the assessee on 20.10.2010 seeking exemption under Section 12AA of the Income-Tax Act, 1961 (Act). The application was rejected on 29.04.2011 by the Commissioner of Income- Tax (CIT), Trichirappalli, on multiple grounds. 3. Firstly, the CIT was of the view that the objects and activities were not genuine. For this purpose, he makes reference to certain complaints that had been received qua functioning of the trust, particularly in regard to the alleged r....

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....o grant retrospective registration to the assessee under Section 12AA of the Income Tax Act, 1961 without taking cognizance of the amended provisions of Section 12AA as per which registration can be granted only with effect from the financial year in which the application for registration was submitted? 7. Mr.Narayanasamy points out that the grant of retrospective registration has no statutory basis whatsoever, drawing attention to Section 12A(2) of the Act and placing reliance on the decision of the Allahabad High Court in Commissioner of Income-Tax (Exemptions) v Shiv Kumar Sumitra Devi Smmarak Shikshan Sansthan [422 ITR 468]. 8. Per contra, Mr.Balaji, who appears for the assessee / respondent argues that there is no statutory provi....

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....) would be considered by the Principal Commissioner or Commissioner in terms of the procedure set out under Section 12AA of the Act. 13. A seamless procedure was thus put in place for the consideration of applications seeking registration for eligibility for exemption and with the insertion of Section 12A(2) and amendment to Section 12AA(1), the question of retrospective grant of registration stood effaced from the Act. 14. Prior to 1.6.2007, there were instances when registration was granted retrospectively from the date of creation/formulation of the entity seeking registration, or from any subsequent date at the discretion of the Commissioner of Income tax. With the insertion of sub-section (2) to Section 12A on 01.06.2007, there w....