The Income Tax Department has preferred this appeal under section 260-A of the Income Tax Act, 1961 (hereinafter referred to as ' the Act') against the order dated 06.02.2009 of the Income Tax Appellate Tribunal.
The appeal was admitted on 29.11.2012 and notice was directed to be issued to the respondent. Office report reveals that the notice sent to the respondent by registered post has not been returned unserved and the acknowledgement due has not been received yet. In view of the above office report, service upon the respondent is deemed to be sufficient but no one has put his appearance.
We have heard Shri Manish Goel, learned counsel for the Income Tax Department.
The short question of law which has arisen for consideration in this appeal is:-
Whether under the facts and circumstances of this case, the date of application for registration under section 12-AA of the Act would be the date on which the application was originally made i.e. 20/21.11.2000 or the date on which subsequent application/representation dated 30.09.2004 was filed?
In answering the above question, it is important to narrate in brief some of the relevant facts giving rise in this appeal.
The respondent Gyan Deep Shiksha Bharti is a registered society under the Society Registration Act 1860. It was established for the purpose of providing education to the children. It filed application on 20/21.11.2000 before the CIT Agra seeking registration under section 12AA of the Act. The application was rejected on 21.03.2002. Against the aforesaid order the society filed Income Tax Appeal No. 364/Agra/2004 on 30.09.2004.
On the date of filing the appeal, the society also moved an application/representation before the CIT to reconsider the order dated 21.03.2002 by which the application for registration was rejected. This application was allowed on 11.01.2005 and an order was passed for granting registration to the society w.e.f. 30.09.2004, the date on which the representation was filed. This was done without setting aside or reviewing the order dated 21.03.2002 by which application for registration was rejected.
The society not being satisfied with the grant of registration w.e.f. 30.09.2004 applied under section 154 of the Act to rectify the order dated 11.01.2005 so as to grant registration w.e.f. 18.06.1999 as was prayed by it in the original application dated 20/21.11.2000 for the grant of registration or in the alternative w.e.f. 01.04.2000, the date of commencement of the financial year in which the application was initially moved.
The aforesaid application for rectification came to be rejected vide order dated 18.11.2015. This order was challenged by the society by means of an appeal before the ITAT and it was registered as I.T.A. No. 488/Agra/2005.
The above appeal and the earlier appeal I.T.A. No. 364/Agra/2004 were clubbed together and were decided vide common order dated 27.09.2007.
The Tribunal ordered for setting aside the order rejecting the application filed under section 154 of the Act and directed the CIT to consider the date from which the registration of the society under the Act would be operative by a speaking order in the light of the provisions of section 12AA of the Act.
The Tribunal in passing the aforesaid order had not touched the order of the CIT by which the registration was refused to the society which was subject matter of I.T.A. No. 364/Agra/2004.
In pursuance to the above order of the Tribunal, CIT passed an order on 18/23.01.2008 holding that the application for the grant of registration to the society would be one which was filed on 30.09.2004 and therefore the registration would be operative from 01.04.2004.
The aforesaid order was challenged by the society by filing appeal before the Tribunal and by the impugned order the Tribunal held that as original application of the society for registration was dated 20/21.11.2000 and is said to have been filed in the prescribed form on 15.11.2000, the request of the assessee for registration would relate back to the said date of the application and accordingly registration would be operative from the commencement of the financial year in which the application was moved i.e. 01.04.2000.
The submission of Shri Manish Goel, learned counsel for the department is that with the rejection of the application of the society for registration, the matter had come to an end. Therefore the subsequent application/representation dated 30.09.2004 is to be treated as a fresh application and in that case the registration of the society under section 12AA of the Act would be operative from the commencement of the Financial Year 2004 i.e. 01.04.2004. The Tribunal has therefore substantially erred in granting the registration of the society w.e.f. 01.04.2000.
There is no dispute to the fact that the initially application for registration was filed by the society on 20/21.11.2000 and in the prescribed form on 15.11.2000. If this application is treated to be the application on which the registration has been granted, it may be operative from commencement of the said financial year i.e. 01.04.2000 but we are afraid to say that the registration to the society has not been granted on this application. This application stood rejected vide order dated 21.03.2002 passed by the CIT. This order to our mind has not been set aside by any authority so far.
The society moved another application or representation on 30.09.2004 vide letter dated 06.08.2004 to reconsider the order dated 21.03.2002. The CIT (Appeals) without recalling or setting aside the order dated 21.03.2002 vide order dated 11.02.2005 directed for the grant for registration to the society w.e.f. 30.09.2004. The aforesaid order granting registration to the society is clear and unequivocal inasmuch as it makes the registration operative from 30.09.2004. Once the registration has been made operative w.e.f. 30.09.2004 the benefits of applicability of sections 11 and 12 of the Act would be available to the society from the commencement of the Financial Year 2004 i.s. 01.04.2004 irrespective of the date of the application for registration of the society under section 12AA of the Act.
It may be important to note here that the Act does not specifically lays down the date from which the registration if any granted to any institution or society under the Act would be operative. It neither prescribes that it shall be operative from the date of the application nor that it should be from the date of the order. In such circumstances ordinarily when registration is granted it will be operative from the date of the order and the benefit of sections 11 and 12 of the Act on the basis of registration would accrue from the date of the commencement of the financial year in which the said order is passed or the application is moved provided nothing contrary to it is prescribed in the order directing for registration of the society/institution. Thus in the present case under the facts and circumstances as narrated above, as the society was granted registration under section 12AA of the Act specifically w.e.f. 30.09.2004, the benefit of sections 11 and 12 of the Act available on registration would be effective from 01.04.2004 the date of the commencement of the said financial year.
The date of filing the original application for registration by the society has no relevance more particularly when the said application was rejected and the proceedings has commenced de novo with the filing of another application for the registration by the society.
In view of the aforesaid facts and circumstances, the substantial question of law as formulated above is answered in favour of the revenue and against the respondent society and it is held that the Tribunal is not justified in granting the benefit of registration to the society w.e.f. 01.04.2000 rather the same is admissible to it w.e.f. 01.04.2004 as was held by the CIT. Consequently the certificate of registration if any issued or granted shall stand rectified accordingly.
The impugned order of the Tribunal dated 06.02.2009 is set aside.
The appeal stands allowed.