Nai Roshni, Chatra More v. Commissioner of Income-tax, Hazaribagh
[Citation -2016-LL-0916-87]

Citation 2016-LL-0916-87
Appellant Name Nai Roshni, Chatra More
Respondent Name Commissioner of Income-tax, Hazaribagh
Court ITAT-Ranchi
Relevant Act Income-tax
Date of Order 16/09/2016
Assessment Year 2006-07
Judgment View Judgment
Keyword Tags statutory period • audited accounts • audit report
Bot Summary: Thereafter, the assessee filed another application in Form No. 10A on 27.01.2006 along with audited accounts for the years ended 31.03.2003, 31.03.2004 and 31.03.2005 seeking registration w.e.f. the date of creation of the trust or at the most at least w.e.f. 01.04.2003 onwards. 12A(a) of the Act vide his order dated 17.07.2006 w.e.f. 01.04.2005 as against the claim made by the assessee, supra. The Ld. counsel for the assessee argued that the Ld. CIT indeed had power to condone the delay in preferring application before him and was entitled to grant registration from the date of creation of the trust if sufficient causes were adduced before him for the delay. The provisions of section 12A of the Act, as it then prevailed vide second proviso to section 12A(1)(a) of the Act clearly conferred power on the Ld. CIT to grant registration from the date of creation of the trust. The law now is well settled by the recent decision of Hon ble Supreme Court in the case of CIT Vs. Society for the Promotion of Education, Allahabad in Civil Appeal No.1478 of 2016 dated 16.02.2016 wherein any application for granting registration preferred by the 3 ITA No. 60/Ran/2013, AY -- Nai Roshni assessee, which is not disposed of within a period of six months shall be deemed to have been granted registration in favour of the assessee from the date of filing the application. The dispute is only with regard to granting of registration from the date of filing the application, which in the present case, was originally filed by the assessee trust on 28.04.2003. 12A of the Act from the date of filing the application in respect of application preferred prior to 01.06.2007 vide second proviso to section12A(1)(a) of the Act.


1 ITA No. 60/Ran/2013, AY Nai Roshni IN INCOME TAX APPELLATE TRIBUNAL: RANCHI BENCH, RANCHI [Before Shri N. V. Vasudevan, JM & Shri M. Balaganesh, AM] I.T.A No. 60/Ran/2013 Assessment Year: Nai Roshni, Chatra More, Champaran Vs. Commissioner of Income-tax, Dist., Hazaribagh-825406 Hazaribagh (Appellant) (Respondent) Date of hearing: 14.09.2016 Date of pronouncement: 16.09.2016 For Appellant: Shri M. K. Choudhury, Advocate For Respondent: Shri Choudhury Oraon, DR ORDER Per Shri M. Balaganesh, AM: This appeal has been filed against order of CIT, Hazaribagh vide Memo No. CIT/HZB/Tech/12A(a)/37/06-07/1127-29 dated 17.07.2006 granting registration u/s. 12A(a) of Income Tax Act, 1956 (hereinafter referred to as Act ) w.e.f. 01.04.2005. 2. Brief facts of case are that assessee is trust constituted on 02.03.2001 and had preferred application in Form No. 10A for seeking registration u/s. 12A(a) of Act on 28.04.2003 originally. This application was not acted upon by Ld. CIT but instead directed assessee to file audit report for purpose of verification of activities carried out by assessee trust. Thereafter, assessee filed another application in Form No. 10A on 27.01.2006 along with audited accounts for years ended 31.03.2003, 31.03.2004 and 31.03.2005 seeking registration w.e.f. date of creation of trust or at most at least w.e.f. 01.04.2003 onwards. Ld. CIT granted registration u/s. 12A(a) of Act vide his order dated 17.07.2006 w.e.f. 01.04.2005 as against claim made by assessee, supra. Against this order dated 17.07.2006, assessee is in appeal before us. assessee also preferred petition u/s. 154 of Act on 01.10.2007 before Ld. CIT seeking registration w.e.f. 01.04.2003 and also another reminder was given on 02.12.2008. 2 ITA No. 60/Ran/2013, AY ---- Nai Roshni 3. It was argued by Ld. counsel for assessee that said application u/s. 154 of Act was not disposed of by Ld. CIT as on date. Thereafter assessee preferred appeal before this Tribunal seeking for registration w.e.f. 01.04.2003 with delay of 2380 days for which delay condonation petition in proper form was filed adducing aforesaid reasons. Under these circumstances, we find that delay deserves to be condoned and appeal is hereby admitted for adjudication as Ld. DR has not made any serious objection. 4. Ld. counsel for assessee argued that Ld. CIT indeed had power to condone delay in preferring application before him and was entitled to grant registration from date of creation of trust if sufficient causes were adduced before him for delay. provisions of section 12A of Act, as it then prevailed (i.e. prior to 01.06.2007) vide second proviso to section 12A(1)(a) of Act clearly conferred power on Ld. CIT to grant registration from date of creation of trust. 5. We find that Ld. CIT did not give any finding with regard to this particular provision of Act in respect of granting registration from date of creation of trust. However, we find that in facts and circumstances of case, assessee trust had indeed preferred application originally for seeking registration on 28.04.2003, which was admittedly beyond statutory period of one year from date of creation of trust as mandated in section 12A of Act. That application dated 28.04.2003 was never disposed of by Ld. CIT on ground that same was not traceable in office of Income-tax Department. We find that it cannot be sufficient reason on which order could not have been passed as it could be seen that assessee was not at fault for same thereby denying registration which was legitimately entitled at least from date of application i.e. 28.04.2003. law now is well settled by recent decision of Hon ble Supreme Court in case of CIT Vs. Society for Promotion of Education, Allahabad in Civil Appeal No.1478 of 2016 dated 16.02.2016 wherein any application for granting registration preferred by 3 ITA No. 60/Ran/2013, AY ---- Nai Roshni assessee, which is not disposed of within period of six months shall be deemed to have been granted registration in favour of assessee from date of filing application. Here, dispute, which is before us, is not on passing of order/non- passing of order beyond period of six months. dispute is only with regard to granting of registration from date of filing application, which in present case, was originally filed by assessee trust on 28.04.2003. We also find that Ld. CIT indeed had power to grant registration u/s. 12A of Act from date of filing application in respect of application preferred prior to 01.06.2007 vide second proviso to section12A(1)(a) of Act. Under these circumstances, we find that assessee deserves to be granted registration u/s. 12A of Act w.e.f. date of filing of original application i.e. on 28.04.2003, which would meet ends of justice. We order accordingly. Therefore, appeal of assessee is allowed. 6. In result, appeal of assessee is allowed. Order pronounced in open court on 16.09.2016 Sd/- Sd/- (N. V. Vasudevan) (M. Balaganesh) Judicial Member Accountant Member Dated :16th September, 2016 Jd.(Sr.P.S.) Copy of order forwarded to: 1. APPELLANT - Nai Roshni, Hazaribagh 2 Respondent - CIT, Hazaribagh 3. CIT(A), 4. CIT 5. DR, ITAT, Ranchi /True Copy, By order, Sr. Pvt. Secy. Nai Roshni, Chatra More v. Commissioner of Income-tax, Hazaribagh
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