Before 01.04.2021 Section 12AA registration once granted is valid till withdrawn by a specific order

Dolphin Educational Foundation Vs Income Tax Officer (ITAT Chennai)

As per provisions of section 12AA of the Act, once a trust is registered u/s. 12AA, it is permanent unless it was withdrawn by a specific order from the authority. However, the law has been amended by the Finance Act, 2020 w.e.f. 01.04.2021 and as per said amended provisions, registration of any trust is restricted for a period of five years. In this case, there is no dispute with regard to the fact that the application filed by the assessee on 11.02.2015, is as per pre-amended regime of registration of trust. Therefore, from the above, it is very clear that once the trust has been registered u/s. 12AA of the Act, its registration will continue unless it was withdrawn by a specific order. In this case, the assessee claims that the trust has got registration u/s. 12AA of the Act from assessment year 2004-05 onwards and said registration is valid. Further, the assessee has filed a fresh application on the basis of amended trust deed dated 11.02.2015, by mistaken of law, as if when the trust deed is being amended fresh registration is required to be taken. The CIT(Exemptions), rejected application filed by the assessee for non-prosecution and non-filing of necessary details and said order is in force. Unless the latest order passed by the CIT(E) is withdrawn, the assessee may lose the benefit of exemption u/s. 11 of the Act, even though it has got valid registration u/s. 12AA of the Act. Therefore, we are of the considered view that an opportunity should be given to the assessee to rectify the mistake committed by the assessee itself for filing a fresh application for registration and said rectification can be done by the CIT(E) itself. Therefore we set aside the order passed by the CIT(E) and restore the issue back to the file of the CIT(E) to allow one more opportunity of hearing to the assessee to decide the issue in accordance with law.

FULL TEXT OF THE ORDER OF ITAT CHENNAI

This appeal filed by the assessee is directed against the order passed by the Commissioner of Income-tax (Exemptions), Chennai, dated 15.10.2019.

2. At the outset, we find that there is a delay of 1136 days in appeal filed by the assessee. During the course of hearing, when defect was brought to the notice of the learned AR present, he has submitted that delay in filing of appeal is mainly due to lockdown imposed by the Govt. on account of spread of Covid‑ 19 infections and in view of the Hon’ble Supreme Court suomotu Writ Petition No.3 of 2020, if the period of delay is covered within the period specified in the order of the Apex Court, then same needs to be condoned in view of specific problem faced by the public on account of Covid-19 pandemic.

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