Trust's registration not to be delayed due to delay of revenue in transferring application to concerned CIT

Gauhati Greater Sewa Nidhi Trust [2015] 58 taxmann.com 145 (Guwahati - Trib.)

The facts of the case, the trust was constituted by Trust Deed dated 29-08-2010 and application for registration in Form No. 10A was filed on 04-03-2011 at the Dak Counter of Aayakar Bhawan, Guwahati. The letter was addressed to Chief Commissioner/Commissioner of Income Tax Guwahati. It was submitted that assessee was eligible could get registration with effect from 29-10-2010 or from the 1st day of assessment year as the case may be. The CIT vide its order dated 11-08-11 granted registration to the Trust u/s. 12AA of the Income Tax Act, 1961 ('the Act') with effect from 01-04-2011. The assessee filed an application u/s 15 of the Act before him as it was of the opinion that there was mistake apparent in the order of the CIT. In the application dated 13-05-2013. It was stated that date of filing of application was dated 29-10-2010 and therefore registration should have been granted from 01-04-2010. The CIT rejected the application filed by the assessee on the ground that application in Form No. 10A u/s 12A(a) of the Act was submitted in the office of CCIT/CIT on 14-03-2011, that the CIT had forwarded the papers to his office on 20-06-2011 that based on the said date, he had granted the registration Form 01-04-2011. Aggrieved by the order as well as order passed by CIT u/s 154 of the Act, the assessee had filed the appeal before Tribunal. The Authorized Representative (AR) of the assessee argued that it had filed the registration application in March, 2011, that the trust was entitled to get registration from 29-10-2010 or 01-04-2010 that assessee should not be penalized for delay in transferred of the papers from the office of the CCIT to office of CIT. The Departmental Representative (DR) stated that the CIT had rightly allowed the registration from 01-04-2011.

3. We have heard rival submission and perused the material before us. The only issue is to be decided is date from which the assessee should have brought the registration u/s. 12AA of the Act. The undisputed fact is that the assessee had submitted the document to the Centralized Dak Counter, Aayakar bhawan, Guwahati on 04-03-2011, that it was addressed to the CCIT / CIT, that there was delay in transferring the application from the office of the CCIT to the office of CIT. We are of the opinion, that the assessee should not be penalized if the application could not be sent to the office of CIT within time. The acknowledgement that it was the duty of the assessee to address the registration application to the CIT Guwahati instead of CCIT Guwahati/CIT Guwahati, the assessee being a charitable trust is not expected to be very precious in mentioning the reasonable designation of the authority concern. Therefore, in our opinion, the trust should have been granted registration from the date of submission of the documents in the centralized Dak Counter, Aayakar Bhawan, Guwahati. Effective ground of appeal is decided in favour of assessee.