Maheswara Educational Society Vs Director of Income Tax Exemptions (Telangana High Court)
Telangana High Court held that granting registration under section 12A retrospectively is not permissible as cogent reasons not provided for belated filing of application for registration under section 12A. Accordingly, appeal dismissed.
Facts- The present appeal has been filed by the appellant. Notably, vide the said impugned order, the ITAT has dismissed an appeal filed by the appellant against the order of Director of Income Tax (Exemptions), Hyderabad dated 25.01.2005, refusing to grant registration under Section 12A of the Act from inception of the appellant’s institution and grant registration only prospectively.
Conclusion- Held that in the present case though the appellant has tried to give certain explanation, but what is required to be considered is whether the grounds raised were cogent and strong enough to justify the delay in seeking for registration. As would be seen from the order passed by the Director of Income Tax (Exemptions) so also the order passed by the ITAT, it clearly reflects that the appellant has taken contradictory stand justifying the delay. The appellant, on the one hand, submits that because of the rush of work on account of frequent expansion of the educational society they were not able to apply for registration under Section 12A of the Act. At the same time, they also try to take a stand that since they had an exemption under Section 10(23C) (iii ad) of the Act, therefore they were not required to seek another registration under Section 12A of the Act and, once when they crossed the limit that was prescribed under Section 10(23C) (iii ad) of the Act, they had immediately moved an application. This again is not-sustainable and acceptable as compared to the first ground giving explanation for the delay; as the two do not match each other and are self-contradictory in itself. Further, the aforesaid judgments have all been decided under an entirely different contextual backdrop and the principles laid down in those judgments can be distinguished on its factual basis itself.
