Director Of Income Tax G)Gmption)G)Gmption v. Vishwa Jagriti Mission

IN THE IIIGH COURT OF DELHI AT NEW DELHI Reserved on: 20'h Seplember, 2012Dale of Deci.sion: 21" December,2012 t +trA 773/2010+rTA775l20t0+rTA775l20t0 ftTA 1092/2010 +ITA 1101/2010 -rITA 1103/2010+ITA 1104/2010+rTA ttt2/20r0+rrA 1124/2010+ITA 1104/2010+rTA ttt2/20r0+rrA 1124/2010 TAX G)GMPTION)G)GMPTION).. .AppellantThrough: Mr. Sanjeev Rajpal, Sr. Standing Counselwith Mr Karan Chauhan. Advocate. DIRECTOR OF INCOME TAX G)GMPTION)G)GMPTION) Versus VISHWA JAGRITI MISSION MISSION RespondentThrough: Mr. N. K Poddar, Sr. Adv. with Mr.Rajender Singhvi, Mr. Amit Aggarwaland Mr. Anurag Dubey, Advocate forapplicant/ interveners. CORAM:MR. JUSTICE S. RAVINDRA BHATMR. JUSTICE R.V. EASWAR R.V. EASWAR. J. For detailed order see ITA 754/2010 llrilll illll" -\.rr.--, ['](R.V.EASWAR)JUDGE DECEMBER 21, 20l2/hs (S. RAVINDRA BHAT)JUDGE ITA Nos'77 3 12010, 7'7 5 12010, 10921 2010. I I [0 ]l/20 I 0,I 103/2010. 1 104/2010. rrl2l20r0 & rr24l20r0 Page I of I * II\ TIIE HIGII CO{JR.'[' OF- DEX.IIX [,A'F ][NtrW ] .[,L{tr] Rcserved on; 20"' ,\cplcmber", [2012]Date of Dectston; 2 I''' I)cc<:tnbar, 20I2 + nTA 754/2010 & C.M. AFFI-" No.15650/2012+ \TA7731201,0+ \TA77512010+ ltTA 1092/20tr0+ nTA 1n01/2010+ nTA 1X03/2010+ ltTA 1104/20X0+ ltTA. 111212010+ nT.A 1124120tr0 DIRECTOR OF INCOME TAX [(EXEMPTION) ]AppellanlThrouglt: Mr. Sanjee v Ra-ipal, Sr. [Standrng]Counsel with Mr. Iizrran [(llratrhan.]Advocate. Versus VISHWA JAGzuTI MISSION MISSION ResporrtlcntThrough. Mr. N. I(. I'oddar, Sr'. Adv. wrth [ML.]Ralender Srnghvi, Mr. Anut Agganvaland Mr Auturng Drrbcy, Aclvocatc [{irL]applicant/ intetvenci's r I COR,AM:MR. JUSTICE S. RAVINDRA. [tsX{A.T]MR, JUSTICE R.V. [EA.SWAR] R..V. EASWATT, J. These are nine [appeals, ][all ][filed by ][Cornnrissiotrer ][of ltrcottre'l'ax ][(Cl'l') ][trrrclcr]section 260A of [the ][Income ][Tax ][Act, ][1961 ][('Act', for ][short) ]['fwo ][sLtbstitttltal] ITA Nos 1 5412010,'t1312010,'71 [512010' 109212010, ][t ][I0l/20 ][l0']Pasc l o['221103/2010. 1104/2010, [lll2l20l0 ][&117412010 ] questions of law were [frarned ][by ][this Court ][ot ][21 ][11 ][2011 ][rn ][l'l'A ][Nos ][75412010]773/2070 anJ 77512010. [which ][are ][as ][follows ][-] "(l) IWtether the Inconte Tax Appellate [Ti'tbund ][hct.s' ][ctt'ecl ][itt]condoning delalt in .filing of [the ][applicalron ].fbr [regrstraliotr ][ttnc{ar]Section I2A/ 12AA [of ][the ][Income ][Tax ][Act, ][19617] (2) 't4lhether lhe order passed b-v the Ti"rburral rs' lterverse'/" 2 In the other appeals, [the ][following ][colnlnotr ][substanttal question of-lau'rryas]frarned otr the sante [daY ][-] "Wethet'the Incorne Tax Appellale Tr'fiutml was nght [irt ]sellrrtg [cr.;rc{a]the order passed. by the [Directctt' General ][of ][the ][ltrccttrtc ]['l-ctr](Exemplion) under Secfion [263 ][of ][the ][Inconte ][Tax ][tlcl, ][19617"] questions of law were [frarned ][by ][this Court ][ot ][21 ][11 ][2011 ][rn ][l'l'A ][Nos ][75412010]773/2070 anJ 77512010. [which ][are ][as ][follows ][-] "(l) IWtether the Inconte Tax Appellate [Ti'tbund ][hct.s' ][ctt'ecl ][itt]condoning delalt in .filing of [the ][applicalron ].fbr [regrstraliotr ][ttnc{ar]Section I2A/ 12AA [of ][the ][Income ][Tax ][Act, ][19617] (2) 't4lhether lhe order passed b-v the Ti"rburral rs' lterverse'/" 2 In the other appeals, [the ][following ][colnlnotr ][substanttal question of-lau'rryas]frarned otr the sante [daY ][-] "Wethet'the Incorne Tax Appellale Tr'fiutml was nght [irt ]sellrrtg [cr.;rc{a]the order passed. by the [Directctt' General ][of ][the ][ltrccttrtc ]['l-ctr](Exemplion) under Secfion [263 ][of ][the ][Inconte ][Tax ][tlcl, ][19617"] 3 Two separate orders [were ][passed ][by ][the ][Incoure ][f ax ][Appellate ]['[riburnal, ][Dclhi]Bench ['I' ]The first order is dated [06 ][05 ][2009 ][ancl ][was ][passed ][in ][Il'A ][\lo:; ][3052.-]3054lDel/2008 which order [is ][challenged ][by ][the ][Itevertue ][in ][l'fA ][Nos ][7521, ] [aml]775 of ZOIO The second [order ][of ][tire Tribunal ][was ][passed ][on ][10 ][01 ][2009 ][in ][I'fA]Nos 1653-1658tDell2)09 [This ][order ][was ][passed ][by ][the ][Tribunal in tlie ][appeals lrled]by the assessee against [the orders ][passecl ][by ][the ][Director of ][lncolrle '['ax ][(Excnrptions)]under section 263 of [the ]Act [The ][Tribunal followed its ][first ][order ][dated 06 ][05 2009]a1d allowed the appeals [of the ][assessee ][In ][the ][first ][order, ][the'Iribunal ][helcl ][1lra1 ][the]assessee was entitled [to ][registration uuder ][section 12A ][and sectiort 80G ][of ][the ][Act ][iirlcl]that the delay in [makir-rg ][the ][application ][for ][such ][registration ][was cotrclotrecl Thts ][was]the orcler passed by the [Tribunal ][in ] [No 3054/Del/2008, ][which ][rvzrs ][thc ][trtattt]appeal by the assessee [and ][consequently ] [Nos.3052-3053/Del/200U ][wer ][c]disrnissed as infructuous. It would be, therefore, appropriate [to ][refer][ to ][the ][circutnstances ][uttder ][whtclt]the assessee filed the [appeal before the ][J'ribunal ][rn]IIA No 3054lDell2008, rn otder tcrappreciate the controversy irt perspective 5. The assessee was incorporated [as ][a soclety ][on ][l0 ][05 ][1993 ][tttrdcr ][llte ][Soctcttes]Registration Act, 1860 Under [the mernorandum ][of ][assoctatlon execuled, the ][assessec]claimed itself to be charitable institution It filed an applicatron in Form No l[)/\seeking registration under section 12L(a) of [the ][Act ][fiorn ][the ][date ][ol'its ][tnccpLtou ][t ][c]fi om 10 05 1993 This application [was ][filed with ][the ] [(IJxempl ][ion) ][on ] [9 ][12 ][2O0'.t]'Ihe application was accornpanied by the audrted balance sireet aud ac;cttultts lbr llrcfirrancial years ending on 31 03 2004 and [31 03 ]2005 The [assessce ][also ][fllcd ][an]application for grant of approval [under ][section BOG(5)(vr) ][of ][tl're ][Act ][ott ][tlte ][satne ][ilay]ie. 19 122005 in Form No [10G ][under ][Rule ][llAA ][otthe ][lnoonte'fax ][l{Lrles, ][1962]An application for condonation of delay in seeking approval under sectiotts l24 [arril]80G was filed on 14 03 2006 whrch [was accompanied by the ][following docutrctrts ][-] (a) A note of the charitable activities [carried on ][by the ][iLssessecs](b) Analysis of the financial accounts of [the ][assessee ][f ][or ][the ][financial ][ycar:;]2002-03. 2003 -04 and [2004-05,] (") Copies of the returns of [income ][of ][the ][assessee ][tn ][Fortti ][No ][1A ][ibr ][the]assessment years [2003 ]-04,2004-05 [and ][2005-06,] (a) A note of the charitable activities [carried on ][by the ][iLssessecs](b) Analysis of the financial accounts of [the ][assessee ][f ][or ][the ][financial ][ycar:;]2002-03. 2003 -04 and [2004-05,] (") Copies of the returns of [income ][of ][the ][assessee ][tn ][Fortti ][No ][1A ][ibr ][the]assessment years [2003 ]-04,2004-05 [and ][2005-06,] 6 The applications were scrutinized [by the ] [(Exemptions) ][and ][sLrflic:e ][to ][trole]that he fould certain [irregularities in ][the receipts ][issued ][by ][l.he ][asscssee According ][1o]him, the receipts containecl [a ][reference ][to ][a certificate ][said ][to ][have ][bccl't tssttcd ][ott]31 03.2003 under section 80G [to ][the ][effect ][tliat ][donations ][to the ][assessec ][werc ][eutrtlccl]to tlre exemption for [the period ][frorn 0104.2003 ][to ][3l ][03 ][2005 ][l{e ][hacl ][the ][t'cc;crpts]verified by the assessing officer [having ][jurisdictiorl ][over the assessee ]['l'lic ][assesslnp.] officer reported that the assessee had [never ][filcd ][any ] [elurtts ]of [inc:otttc ][srtttrc]inception. It would appear that thereafter an applicalron [[br ][registratlott ][Ltttclct ][scc:ttou]BOGwas subrnitted by the assessee on21 [12 ]2005 and [an ][applicatron ][lor ][condonaltotr]of the delay in subrnitting the application [was ]also filed [l'he ][returns ]ol'incotle [rvoulcl]also appear to have been filed claiming exemptiou [under ]section I of tlte [Ac:l ][rtr]respect of the entire income of the assessee - society on [the ground ][that ]it [had ][applrecl]for registration under section 12A 7 Subsequently, the DIT (Exemptions) seems [1o ]have found [that the ][assesscc ][lracl]issued certificates under section 80G for collection of donations {.bl thc [pertorl]0l 04 2001 to 31 03 2003, these certificates of approval rvele fouud [no1 ]1o have becrrissued by the income tax authorities Based on thrs serious [irregulartty ]tlrc [DI'l'](Exernptions) sought an explanation fi-orn the assessee Several otlter partrc:r.rlat s rver-calso called for such as the names, addresses and PAN nuurbers of the douors, tlrc [tnocle]in which the donations were received, etc l-lte assessee was also callcd uporr luexplain the reasons for not fihng the retul'trs of tncome on a legular basts evett tlttirrgltno registration under section 12A was granted The assessec respon(led by a lcttcrdated 17.03 2006 the gist of wirich was that the financial matters [ancl ]tax [rclatcd ][rsslros]were being dealt with by its erstwhile lreasurer A K Srkri, Chartered Accountanl [rvho]had since ceased to work for the sociely and [that ]the [asscssee ][had ][tnade ittqurries ][Ir'ont]hiur, tlrat lre had informed the society that ["due to ][c'erlcrrn ][lopses ][l.t.1t ][lrts suborclttrula,t]lhe d.ocuruenlatiott is not adequale" and that ["he ][ha,s ][lalrerr ][apprrlprrale ]s'le1n:/ [r ][ettrt'tlrc.s]ht thrc regard' With regard to the failure to submit the [r.cturns ]of iuconrc, [tlrc]assessee gave a sirnilar explanation 8 The DIT (Exernptions) was not satrsfied with the [assessee's ][rcply ][arrd ][lre ][rrracle]further queries in relation to certain receipts tssued [by the ][atisessee {i.rr ][donattotrs ][lrr]response to this quely the assessee subrnitted [a ][detarled ][reply ][dated 26 05 ][2006 ]['l'hrs]letter is reproduced in paragraph12 of [the ]first order [of the T'ribunal ][and ][ts, ][lltct'clirt'e,] 8 The DIT (Exernptions) was not satrsfied with the [assessee's ][rcply ][arrd ][lre ][rrracle]further queries in relation to certain receipts tssued [by the ][atisessee {i.rr ][donattotrs ][lrr]response to this quely the assessee subrnitted [a ][detarled ][reply ][dated 26 05 ][2006 ]['l'hrs]letter is reproduced in paragraph12 of [the ]first order [of the T'ribunal ][and ][ts, ][lltct'clirt'e,] not reproduced here. lt [is sulllcient to ][note ][that ][the ][assessee ][placed ][tlte ][tespttttsrbrlity]for the irregularities [in ][the ][receipts and the ][tax ][related ntalters upon ] [I( ][Stl<r ][r ]['l'lrc]assessee explained [that on ][cotning ][to ][know ][of ][the ][rolc ][played ][by ] [I( ][Stkrt' ][att]executive committee [meeting was ][iinmediately ][convened and ][in that ][rneetitrg ][Siltrr ][hacl]ir-rformed the assessee [that ][he ][in ][turn ][relied upon ][his ][cnrployee ][otre ][Vishnu ][Prasad ][ttr]assist him in the [assessee's ][tax ][related ][matters and ][that on coming ][tO ][litlow ][llrat ][lrrs]employee had not [discharged tire ][rvork ][entrusted ][to ][hirn properly, ][he had ][filed ][a Poltcc]cornplaint seeking initiation [of ][action ][against ][Vishnu ][Prasad ]['l'hcse lacts ][tvcre]confirmed by Sikri [in ][writing ][and ][he ][also appended ][his ][signatureto ][the ][nrirtt-ttcs ][ol'thc]meeting ip proof thereof [The ][assessee ][further pointed ][out that ][it ][had ][loclgccl ][a]complaint with the [police ][against ][Sikri ][in ][December, ][2005 ][and ][itl ][trupport ][of thc lact. ][a]copy of the cornplaint [was ][enclosecl ][with ][the ][assessee's ][letler ][It ][was ][f ][urther ][sLtbttttllcd]that the executive [comrnittee ][normally ][entrusts drfferent ][luncltons ][to ][dr{I'ercrrt ][ofllcc]bearers/ executive [members and relies upon thern ][for ][the ][proper dischalge ][o['thosc]functions, as would [happen ][in ][any ][organisation ][It ][was ][subrnitted ][lirrtller ][that ][all ][thc]donations were [properly ][accounted ][for ][As ][regards ][the tton-sttbtnissiott ][ol'the ][tetlttl'ts]of income, it was [pointed out that ][for ][the ][assesstnettt ][years ][2001-02 ][and ][2002-0-l ][llre]returns were sent through [speed ][post ][while ][those ][relating ][to tltc ][assessntcttt ][yczrt ][s]2OO3-04 to 2005-06 [were ][filed on21 ][022006 ][lt ][was explained ][that ][as soott ][as ][1he]assessee came to know [of ][the ][lapse ][it ][realised ][that the erstwhile treasuler ][(A ][l( ][Srlc'r)]had failed to [discharge ][his ][functions ][properly ][and also ][did not ][apprtse ][llte ][cxccrt-tlivc]committee members [about ][the ][lapse and, ][therefore, ][his ][scrvices ][wcre teruttttatcd ][atlcl]steps were taken to [cornply ][with ][the ][filing ][of ][the ][returns ]['fhe ][zrssessec ][also ][cxPlatnecl]that these developments [constituted suffrcient ][cause ][fcrr ][thc ][delayccl ][{'iling ][o[' ][thc]for [approval under ][sections ][12A ][and ] [and ][that ][the ][DI'l' ][(ExcrnPtions)]applications ought to have [condoned the delay ][and ][accorded regrstration.] l)agc 5 o1.22 l)agc 5 o1.22 9 The DIT (Exemptions) [refused ][to ][grant registration ][to ][the ][assesscc-socicll' I'lc]for [the ][refusal. ][The rnain ][reasons ][were ][that ][the ][activitres ][o1'llre]gave several reasons assessee - socibty were [not ][genuine, that ][the ][assessee ][had ][forged ][tlte ] [ccrtiflcatcs,]that the assessee had [also ][fa.ked ][the ][cerlificate granting exletlsiott ][of ][registration ][uttdct]section 12A for the [period ][01 04.2005 ][to ][31 03 2008, ][that no ][sr-rch ][ccrtrllcale ][ltas ][trectt]issued to the assessee by [the ] [(E>remptions), ][that ][the ][assessec ][did not ][subtntt ][atty]particulars relating to the [donations received on the ][basrs ][of ][alleged ccrltl'tcales ][tssttecl]under section 80G, [that simply by taking ][the plea that ][the ][soctety was ][clepenrlerrl ][on]A I( Sikri, its erstwhile [treasurer, ][it ][cannot rvash ][off ][its ][hands ][fi'om the ][rllcgaltty]cornmittecl by it, that [the conduct ][of ][the society since ][inception ][had ][to ][bc ][l<cpt ][ltr ][ttttttci,]that it was inconceivable [that the failure ][to ][apply ][lor ][approviil/ ][r-egrstralitttt ][ttttdcr]section IZA and section [was ][not ][within ][the l<nowledge ][o1- ][the govcrtirrlg body ][til']the society, that it [was ]only [after ][being ][cornered ][that the ][assessee ][canle ][ionvzrt'd ][ttt]February, 2006 to file [the ][returns ][and ][in ][these ][ciroutnstances ][the ][zlsscssec's]explanation for the [inordinate delay cannot ][be ][accepted ][The ] [([rxcnrptions)]furlher observed that it [was ][part ][of ][the ][duty ][of ][Lhe ][treasurer ][under the ][tnentot-ittlclr-tttt]and articles of [association ][to ][present ][the ][accour-rts ][in ][the ][monthly ][tncetitrgs ][ol ][thc]committee for approval [and ][this ][would ][clearly ][show tlrat ][he was ][l<ccPing ][the]'ranaging comrnit1ee ilformed [about ][the financial ][matters, ][that at ][any rate ][no ][pcrsoll:ll bcnelll]accrued to the [treasurer ][by ][delaying ][or ][not perfornring his ][duties and that ]["tltc ][lrtltrlrl.T']of fhe circumstances [aS ][discussetJ ][abotte ][and ][rn ][lhe earlrer ][pm'dgt ][o1ilts 'tlttn"s ][llrul]lhese activrties could nol [hat.,e ][conlutued ][(^,er' ][o ][penod of ][vtr:h a lottg ][lrtttc ][t't'ltL:rt ][lltt:]lmowledge of [the ][mentbers ][of ][the ][mcu'mgtlg conttrtrllee/ ][got,ernirtg ][ltttclst " ][ittlcl],,hatting regard to otterall. conduct of the applicant ancl lhe lotctLillt rtf'crt'ct.utr,sltttrc'e.v,the argument [put ]forv,ard [regarding ][ils ][ltono ]frdes [cuttttol ][be ][accepled' ][lior ][tlrcsc]reasons the DIT [(Exernptions) held ][as ][follows ][-] ,,5.Invteluofthedetaileddiscussionsmthe.foregoiltgpdlogt.upl.t's and rn the totalitlt [of ][the ][circunr.sl,cutces, ] [Lutt ][t'tol ][sali.s.fied ][abtntl ][lhc'] 1T of [fhe ][octivties ][of ][the applicctrrl ][.soc'iely ][T'lte|c.frtrc, llrc]genumeness apphcant socinq,'S [request.for regtslrafictrt ][tr/s ][I2rl ][t,s ][re.1ccletl.] 6. Smce I ltat,e [refused ][lo ][gt'anl ][regrslralrort ][lo ][llte ][LlPpliL'(utl]society vtrlhilz [lhe ][nteaning ][oJ ][l2AA(l)(b)ft1 of ][the ][ltrcctnre-ttx ][At't,]I96l, I do [nof consider ][fi ][appropriale ][lo ][adludtcole ][on ][Ils ][reque'\'t.fa']condonatron.for [delay ][in.fil,ing ][a?tphcaltctn ][tnforrtt ][Mt.l0A ][fot'grctrrl ][rt/]registrattotr u/s I2A [of ][the ][Income-lax ][Acl, I96I ]['"] ,,5.Invteluofthedetaileddiscussionsmthe.foregoiltgpdlogt.upl.t's and rn the totalitlt [of ][the ][circunr.sl,cutces, ] [Lutt ][t'tol ][sali.s.fied ][abtntl ][lhc'] 1T of [fhe ][octivties ][of ][the applicctrrl ][.soc'iely ][T'lte|c.frtrc, llrc]genumeness apphcant socinq,'S [request.for regtslrafictrt ][tr/s ][I2rl ][t,s ][re.1ccletl.] 6. Smce I ltat,e [refused ][lo ][gt'anl ][regrslralrort ][lo ][llte ][LlPpliL'(utl]society vtrlhilz [lhe ][nteaning ][oJ ][l2AA(l)(b)ft1 of ][the ][ltrcctnre-ttx ][At't,]I96l, I do [nof consider ][fi ][appropriale ][lo ][adludtcole ][on ][Ils ][reque'\'t.fa']condonatron.for [delay ][in.fil,ing ][a?tphcaltctn ][tnforrtt ][Mt.l0A ][fot'grctrrl ][rt/]registrattotr u/s I2A [of ][the ][Income-lax ][Acl, I96I ]['"] 10 Against the aforesaid [order ][of ][the ] [(Exemptions), ][tlte ][assessee ][lllcd ][an]appeal before [the Tribunal ][and ][raised ][several ][contentions ][which ][were ][all ]"u'',*1,1stodby the Tribunal [which ][upheld ][in ][principle ][the ][right of ][the ] [(l3xemptions) ][lo ][lttoh]ir-rto the activities of [tlie ][trust ][including ][the ][forged ][certillcates ][rvhilc ][grantrrrg]It [held that the ][trust ][and ][the ][trustees ][were ][indcpendent ][and ][1hc ][acts ][o1'tltc]registration trustee cannot be that [of ][the ][trust ][unless ][they ][are enacted ][wrth the iuvolvemetrt of ][othcr]trustees Eventually, [the ][Tribunal by ][order dated ][15 5 ][2O0l ][held ][asr ][utrdcr ][-] "80. Thus it was necessary .for [lhe ][l.d. ][DfT' ]@,) [l0 ][extrrtrrttc ][lltul]' whether other members of Gotrcrning Bodlt v,cre ulso [tnvttlvccl ][rtr]obtctining .fake [certrftcates ][or ][lhe.y ][were ][m ][llte ][lotowlarlge ][llttrl ][lha]certtficaies are fake' Individuul [acln'tl)t ][of ][a ][lrtstee ][ot' ][d ][ttrt'rtthet']ccntnot be lertnecl lo [lte the ][aclitti\t ][of ][lhe ][lrusl. ]['l'he ][lartguage ttsed ][rrr]lhe prot,ision [of ][section ][l2AA ][re.fers ][lo ][getrurneness ][of ][lhc ][aclrttrltes ][o/]the trusl or mstilution [and ][not ][lo ][lhe actntrlres ][ctf ][cm ][irrdtviducrl ][lrttslce.]IJ'aryt nusctppt'oprratron [is ][made ][lhal ][v,rll ][be ][only ][a ][breaclt ][o.f ][lt'rts'l ][ort]lhe part of that [parficui,ar ][truslee. ][Tlttts ttt ][oLtr ][vtev) ][rl ][tttct.s ][ttece't,\ot'.))]for.^fhe "were [drc ][1n1 ][to ][exannine ][thal ][aspect ][a.s ][all ][lhe relcvattl ][ttrolat'trtls]placed. before hnt. [Wfthoul ][exammtng ][he ][catnro( ][clrov' ][tr]presuitption thit other [rnentbers ][of ][lhe ][Got'ertung ][Bodv tvu'e ][ol's'rt]mt,olved. In the [circuntslances ][y/e ][con,vder ][tt ][1t.tsl anL{ ][propar ][lO]reslore thrc rcsue [to ][the ]file [of ][DIT ([,) ][to ][exan',nne lht's' rssue 1t'operl.1t]and after ntaking [t)errrtcafion ][irt ][lhts ][regard pass ][att ][orclcr ][tr/,s ][I2tlA ][tr.s]per prot)tsrons of [latu' ][We ][du'ecl ][accordmgly'] BI. so as it relales [lo ][condctnalion ][of ][delay, ][1r1. ][1il7'(l:') ][hu,s ][ttttl]decujed [(hts ][tssue ][andhis ][observatrcln ][m this regot'd ][cottlturted ][ttt p(ItLl]l7 of the [mtpugned ][order ][whch ][l'tus ][alreadl' ][beert ][rept'othtt:cd rrt ][llte]abotte part olnis [order. ][lk ][tto ][not.filul ][any.forc:e ][rrt ][llte ][cottlctrlrorr ][of]the Id. Ai that [cottdonalrrn ][qf ][4ela1t ][s'hould ][be ][c'il'tLlet'cd] 1TANos75412010.11312010,7'7sl20l0,I}92l2olo,ll01/2010' aulomalicalllt [g"anled as lhere ][is ][no speahng ][ordu' ][tn ][lhs ][regcrrd ][b.1']the lrl. DIf @) He [has ][not ][consitlered ][thrs ][rssue. ][After ][exutttrtritrg lhc]issue of genuineness of [actruities ][as djrecled abot'e, ][lcl. ][DI'I'(E) ][wrll]also coniider lhe [issue ][regardtng ][cortdonatir,tn ][ctf'deloy ][otr ][rnaril.Y ][turd]pass a speaking order [on this ][issue. ][we ][dtrect ][ctccr.trclrtrgly."] 1TANos75412010.11312010,7'7sl20l0,I}92l2olo,ll01/2010' aulomalicalllt [g"anled as lhere ][is ][no speahng ][ordu' ][tn ][lhs ][regcrrd ][b.1']the lrl. DIf @) He [has ][not ][consitlered ][thrs ][rssue. ][After ][exutttrtritrg lhc]issue of genuineness of [actruities ][as djrecled abot'e, ][lcl. ][DI'I'(E) ][wrll]also coniider lhe [issue ][regardtng ][cortdonatir,tn ][ctf'deloy ][otr ][rnaril.Y ][turd]pass a speaking order [on this ][issue. ][we ][dtrect ][ctccr.trclrtrgly."] 11 pursuant to the aforesaid directions of the Tribunal, the DIT [(Exemptrotrs) tooli]up the proceedings afresh [FIe ][called upon ][the ][surwiving trustees ][and ][rccorded ][thetr]submissions [and ][aiso ][examined one ] [Mansinghka ][rvho ][was ][the ][dotlot. ][rvho blcw]tlie whistle by intimating [the income ][tax ][department ][that ][the receipts ][issued ][to ][hirrr try]the assessee contained [false ][ceflificates ][under ][sectiotrs ][l2A ][and ][80G ][Aficl ][trll]examination of [all ][the ][issues ][afresh ][as ][directed ][by ][the ][Tribunal the ][Dl'f ][(Flxcrnptiotrs)]arrived at the following [conclusiorts ][-] (a)It is not acceptable [that ] [I( ][Srkrr, ][Treasuuer ][rvers ][solely ][lespotrsible ][fc,l]theforgery of the [certificate ][uuder section 80G,]theforgery of the [certificate ][uuder section 80G,] Thestatement of [Sikri ][recorded on ][20 ][10 ][2005 ][does ][not ][match ][rvith ][the](b) subsequentpolice complaint and confessiou [ol'Sikri ][to ][the ][Chain-rlatr ][(.)1- ][lhe]society (c) There is no evidence [to ][shorv ][the exclusive itrvolvetnetlt ][of ][Siltlr ][ttr ][tllc]forgery or to show [that ][the ][other ][members ][of ][the ][socicty were ][tlot ][itlvolveil]There is circumstantial [evidence ][to ][suggest ][that ][ol,her ][tlleurbers ][of ][the ][st)crcly]were also involved Because of the [involvement ][of ][several tnetnbers ][of ][the socicty ][in ][the](d) of [the certificates, the ][assessee ][caunot be considered ][to ][be catryrl.lg ][()ll]fOrgery a charitable [activity, it ][was ][actually carrying o1 ][a ][criminal ][activity] (") The delay in filing [the ][aplthcation ][for ][registration ][uucler ][scctions ][12,^']and BOG cannot [be condoned ][because ][it ][was ][or-rly ][after being ][corucred that thc] I assessee came up [with ][the ][defence ][that the ][responsibility ][for ][thc ][allegecl]forgery of the certificates [lay ][at the ][doors ][of ] [I( ][liikrr, wlticlt ][was ][trol ][att]acceptable or reasonable [explanation, ][the ][assessee ][was also ][involvecl ][ttl ][llte]forgery and, therefore, [its ][plea ][for ][condonation ][of ][the delay ][cantrot be acceptcd] IZ In fine, the DIT [(Exemptions) concluded ][that ][registratiou under ][section ][l2A]cannot be granted and the [delay ][in ][filing ][the ][applicatron cattnot ][be ][ct-ttrcloltccl]Consequently the claim for [certificate ][of ][exenption under ][sectton ] [rvas ][alstr]reiected. This order was [passed ][on24 ][9 2008] 13. It rvas against [the ][aforesaid order ][of ][the ] [(Exernptions) ][that thc ][asscsscc]preferred an appeal to the Tribunal [in ] [No ][3054/Del/2008 ]['['he ]['l'riburlal ][exatrttttetl]the facts and the submissions [in ][great detail ][frorn ][paragraphs ][30 ][to ][104 ][of'lhe]impugqed order dated [06 ][05.2009 ][In ][these paragraphs ][the eulit'e ][sequeltoe ][ol-cvctrts]was marshalled cogently [and ][the ][rival ][subtnissions have ][beert ][elaborately ][aclvertccl to]ilcluding the authorities [cited ][by ][both ][the ][sides ][Ultirnately ][Lhe ][lindings ][ol' ][thc]'fribunal are contained in pagaraphs 105 to 124 of the irnpugned orclcr .r\ perusal olthese paragraphs shows [that the ][Tribunal ][has ][recorded the ][follorving ][findings ][-] 13. It rvas against [the ][aforesaid order ][of ][the ] [(Exernptions) ][that thc ][asscsscc]preferred an appeal to the Tribunal [in ] [No ][3054/Del/2008 ]['['he ]['l'riburlal ][exatrttttetl]the facts and the submissions [in ][great detail ][frorn ][paragraphs ][30 ][to ][104 ][of'lhe]impugqed order dated [06 ][05.2009 ][In ][these paragraphs ][the eulit'e ][sequeltoe ][ol-cvctrts]was marshalled cogently [and ][the ][rival ][subtnissions have ][beert ][elaborately ][aclvertccl to]ilcluding the authorities [cited ][by ][both ][the ][sides ][Ultirnately ][Lhe ][lindings ][ol' ][thc]'fribunal are contained in pagaraphs 105 to 124 of the irnpugned orclcr .r\ perusal olthese paragraphs shows [that the ][Tribunal ][has ][recorded the ][follorving ][findings ][-] (a) In the earlier order of [the ][Tribunal ][dated ][2lt ][05 ][2O0l, ][it ][rnrtrs ][hclcl ][that]the DIT (Exemptions) [should ][examine ][whether ][the ][other ][tttetrtLrcrs ][ol- ][tlre]governing body of the assessee - society [were ][involved ][in the alleged ][lirrgery,]etc. or not. This order [became ][final, both ][parlies ][having ][accepted ][thc ][sattte] (b) The trust as an entity [and ][the trustees ][or ][thc ][luentbers ][ol- ][the govcrrltng]body, as individuals, [have independent extsteuce ][and ][lhey ][have ][zr ][fitlLrciary]relationship with [eacli other ][based ][on ][the ][assumption ][ol ][borrer.fclc ][lrehavtottt]A crirninal act of a [trustee ][or ][member ][of ][the ][governing ][botly ][carltlol ][bc]attributed to the trust [which ][is ][an ][independent ][entlty ][lfowcver, ][tlte ][postttotl]may be differelt if it [is ][found that ][the ][trustees ][or ][metnbers ][of'the ][g()vcrrrrng] @ body had colluded [or ][were conniving ][with ][each ][other ][ancl ][using the trust ][as ][a]plalforrn to advance [their ][r"refarious ][agetrda ][In ][such ][a ][case ][tlte lrust ][woulcl]equally be resPonsible The facts and the [sequence ][of ][events ][right fionr ][the ][beginnitlg ][cliscloscd](") that the trustees [or the ][members ][of ][the goveruing ][body ][rvere ][trot trtvolvcd ][ttr]the alleged acts of [illegality ][comrlrtted ][by ] [i( ][stkri, ][who ][altinc ][rvas]responsible for them. (d) The trust itself [appeared ][to ][be ][a ][victim ][of ][the ][mishanclling ][of ][thc]responsibility entrusted [to ][A.K ][Sikri.] (") All the nonies [were properly ][accountcd ][fcrr ][arrd ][dr-rly ][aplllictl ][firt]charitable [purposes] There is no [question ][of ][any ][collective responsibility ][utlder whrch ][thc](0 trust could be liable [to ][answer ][for ][the ][irregularities ][or ][illegalitres ][allcgcr-liy]committed by K [Sikri ][since ][all ][these are ][attributable to hirn in ][his ][individual]capacity (g) The DIT (Exemptions) [has ][failed ][to ][establish ][thal ][the govcrning ][boclv]members or other [trustees ][were acting ][in ][collusion ][with ] [I( ][Srliri ][lt ][rvas ][tttl]individual act of [Sikri, ][not ][attributable ][to ][the ][assessee] Forthe above [reasons ][the ][Tribunal ][held that ][the'society ][was etrtitled ][to ][gct ][rcgisttatiott]under sections [12A ][and ][BOG, ][however, ][it ][was held tlrat ][the ][authorities rvoulcl be ][[l'ee to]examine the application [of ][funds ][in ][conformity ][with ][the ][objects ][of ][the trr:st ][in ][lhe]assessment [to ][be ][made ][under ][tl-re ][Act ][Since ][there ][were sufficieut ][reasons ][lor ][the ][clelzry]in filing the [applications ][for ][registration, ][it ][was ][held ][that the ][delay was ][condotrecl atltl]tlie trust should [be ][granted ][registration from inception] Forthe above [reasons ][the ][Tribunal ][held that ][the'society ][was etrtitled ][to ][gct ][rcgisttatiott]under sections [12A ][and ][BOG, ][however, ][it ][was held tlrat ][the ][authorities rvoulcl be ][[l'ee to]examine the application [of ][funds ][in ][conformity ][with ][the ][objects ][of ][the trr:st ][in ][lhe]assessment [to ][be ][made ][under ][tl-re ][Act ][Since ][there ][were sufficieut ][reasons ][lor ][the ][clelzry]in filing the [applications ][for ][registration, ][it ][was ][held ][that the ][delay was ][condotrecl atltl]tlie trust should [be ][granted ][registration from inception] 14 While narrating the sequence of the [events ][leading to the ln-est ][of A ][I( ][Stkt'r,]the Tribunal took note of the [genesis ][of ][the ][entire affarr ][whic;h ][started ][fi'ottt ][thc]cornplaint lodged by M P Mansinghka Charities [Trust ][of ][Mumbai ][lntmedial.cly ][on]receipt of the complarnt, the assessee convened [a ][tneetiug ]of [its ][governirrg ][body ttt ][t{s]head office at Delhi in which Sikri [was ][present ][His ][explanatiott was ][tlrat ][hc ][lrail]applied for exemption ceftificates [in ][the normal ][course ][of ][his worlt, ][relyrng ][ott ][ltil;]office accountant (Vishnu Prasad) The [accoumtant ][was ][absconding ][ancl ][accotcling ][to]Sikri an FIR had been lodged with [the police ][for ][taking ][action ][Shkr-i ][also signed ][thc]minutes of the meeting in which [these ][facts were appareully ][recorded ]['l'hc ][gcnclal]body appointed a committee consisting of Sikri [and ][Dev ]Ral [I(ataria, the ][Gctreral]Secretary to enquire into the matter On 15 0l [2006, ]Sikri wrote a [lctter ]to [tlte]Chairman that as Treasurer [he was responsible ][for ][all ][the accouttting ][and ][tax ][mitttct ][s,]tliat he was following up the issue about [the ][forged registration ][cer.titlcales tvtl"lt ][tlre]income tax authorities and a private agency [was ][appoirrted ][(by ][him) ]to [asc:cflain ][lltc]wlrereabouts of the erring employee. [Sikri ][submitted ][a report on ][28 ][022006 ][to ][lhe]Chainnan of the society [that the ][fake ][certificates ][rryere ][procured ][by ][his ][ernploycc]which was submitted by him (Sikri) ir-r turn to the society IIc [acccptccl ][nrorzrl]responsibility and prornised to regularise [the ][tnatters ][and ][tendered ][hrs ][apology ][to ][lltc]trust He sought for some time to [enable ][him ][to ][interact ][rvith the ][incotrte ][tax]department to prove his bonafide and correct the iristakes [He ][ttttdet'toolt]responsibility for getting the society [into trouble, ][including ][crinrinal ][proceedtngs ][-l-he]trust found these replies of Sikri [to ][be ][evasive ][and ][filed ][a poltce conrplaint ][rvith ][the]SHO, Nangloi Police Station, [New ][Delhi on ][17 ][03.2006 ][In ][this ][complatrtt ][thc ][soctety]stated that apart frorn Sikri, [one Radhey ][Lal ][Gupta could also be ][ittvolved ][Lloth]Radhey Lal Gupta and Sikri [were removed ][on ][04042006 ][On ][this ][day ][a ][[iesh]cornmittee consisting of five [members ][was ][constituted ][to ][eltquit'e ][inlo ][the ][tnatler]Apprehending further [proceedings, ][Sikn ][filed ][another ][complaittt ][against his cnrploycc](Vishnu Prasad) witl-r the SHO, Pitampura, Delhi [narratttlg ][in ][detail ][as 1o ][horv ][hc] entrusted the work [to ][hirn ][and ][how ][he ][later on ][calne ][to ][know that ][evett regtrlat' ][tax]returns l-rad 1ot beel [filecl, ][etc ][In ][this ][police ][cor-nplair-rt ][also, ][accorcling ][to ][llrc]Tribur-ral, Sikri acoepted [the forgery ][of ][the cefltficates ][and ][the notr-lilrng ][of ][tltc ][lax]returns, which [were ][duly ][prepared ][by him ][and handed ][ovet'to ][the entployec ][lbr ][Irling]with the income tax [department ][Pressure ][started ][to ][build ][on ] [ikri ][both ][frorn ][1 ][he ][tr ][trst]and from the [police ][and ][he ][was ][forced ][to ][file ][another ][corr-rplaint ][utrder secttotr ][156(3)]of the Criminal [Procedure ][Code ][on ][29 ][04 ][2006 before ][the ][Clrief' ][Metropolitarr]Magistrate, Rohini [District ][Court ][The ][complatnt was ][accompanied ][by ][cvtdettce ][IIt]support thereof He [pointed out ][that the police ][had ][not ][registered ][ltis ][oont;rlartrts]though they disclosed [cognizable offenscs and prayed ][fbr ][a direction ][tirat ][tltc ][polic:c]should register [the ][FIRs ][ancl ][proceed ][with ][the ][investrgatiotr agattlst hts ][enrployce ]['l'hc]police authorities then carried [out ][an ][investigatron ][atrd ][subnttttcd ][a ][tcpott ][ott]28.05 2OO1 thatthe particulars [of ][the employee, ][as ][given ][by ][Silcri were ][itlcotnplctc ][attcl]that in the absence of [any ][evidence ][regarding ctnployrnetrt ][o[ ][tl-re ][absconclitrg ][pcrsL)lr,]Sikri hinself was [responsible ][for ][the ][alleged ][irregr,rlarities On ][3 ] [05 ][2007 ][Sikr ][r]himself was examined by [the ][Kirti ][Nagar Pohce Station, ][Dclhi ][in ][relatiotr ][lo ][lill{]No 605/2006 filed by [the ][incorne ][tax ][authorities ][on ][31 ][1Z ][2006 ][repor.ting ][firrgcry ][o{']the certificates of [registration under ][sections ][12A ][and ] [In ][the ][statetucnt ][givctr ][ltr]tlre police on 31 [05.2007, ][Sil<ri gave ][the ][same ][explatration, ][natnely, ][the ][entrustrlcrrl ][ol-]the work of filing [the ][applications ][for ][approval ][uucler scctror)s ][12A ][arrd ][B0(i ][and tlrc]filing of the income [tax ][returns ][to ][his ][employee ][FIe also ][statecl ][that ][it ][rva:; ][ltts]ernployee who had [given ][the ][certificates to ] [Gtrpta, tlre ][Frcsideut ][of ][llrc ][asscl;sec ][-]society for further action [Radhey ][Lal ][who ][was ][also examined ][by ][thc ][Kirti ][Nagnr]police confirmed the statement of Silcri On29 02 2.008 a report [was suburitted try ][tlre]police i' the Court of [the Metropolitan Magistrate, ][Roirini ][to ][thc effect tlrat ][Sikri ][rvas]rnaking false staternents [and ][a ][prayer ][was ][made ][that ][actton ][under sectiott ][1Bl, ][Incliart]perral Code may be taken against hirn. Prtor thereto, on 2l II2001, [on tlte ][basis ][o[-]tlre crimilal cornplaint [No ] [B7OI20O1filed ][by the ][assessee ][on 28 06 2006 ][in lhe ][(loutt] llti of ACMM, Rohili [coufts, Delhi ][an ] [was registeled ][agarnst ][siltri ][aucl ][lte ][was]arrested by the [police ][He ][remained ][in ][custody ][till 26.I22001 ][ln ][the ][tneallttttrc ][ott]27 lI.ZOOT he filed [a ][bail ][application ][uncler ][section 437 ][of thc Cr ] [aud ][evctt ][in ][this]bail application, [he reiterated ][his ][earlier ][stand ][that ][he aloue was responsiblo ][(irr ][the]controversy, through [his ernployee. ][He ][also ][stated ][that no ][other trttstec was ][involved]in the conttoversy [Eventually Sikri ][passed ][away ][in ][2011] llti of ACMM, Rohili [coufts, Delhi ][an ] [was registeled ][agarnst ][siltri ][aucl ][lte ][was]arrested by the [police ][He ][remained ][in ][custody ][till 26.I22001 ][ln ][the ][tneallttttrc ][ott]27 lI.ZOOT he filed [a ][bail ][application ][uncler ][section 437 ][of thc Cr ] [aud ][evctt ][in ][this]bail application, [he reiterated ][his ][earlier ][stand ][that ][he aloue was responsiblo ][(irr ][the]controversy, through [his ernployee. ][He ][also ][stated ][that no ][other trttstec was ][involved]in the conttoversy [Eventually Sikri ][passed ][away ][in ][2011] 15 The above facts [and ][the ][sequence ][or ][chronology oIevenl-s ][havc bectt ][discr-rssed]in paragraph l0g of [the order ][of ][the ][Tribunal ][The ][Tribgnal ][has ][optlted ][ttl ][llatagralllt]l l0 that these facts [cannot ][be ][bruslied ][aside ][or ][oalled self-servrng ][thcts ]['l'ltc ][cvttlcttcc]in the form of [statement ][of ][A.I( ][Sikri, ][minutes ][of ][the ][mcetttrgs, ][cottrlllattrt ][to ][thc]police autfiorities [(both ][by ][the ][assessee ][atid also ][by ][tlie ][incotre tax ][clcpattt'e1t),]i.vestigatiol by [the police ][and ][therr reports, ][proceedrngs ][before ][tlte crintttlal ][coutts,]the bail application [of ][Sikri ][on the ][basis ][of ][which bail ][was ][granted ][to ][ltitn ][at'c all]evidence, according [to ][the ][Tribunal, ][to ][show the ][cornplicity or invglvcuet'rt of ][Srhri ][irr]the alleged forgery [or ][irregularities ][in ][the ][issue ][of ][the ][certificates ][of'registral"it-rrr/]approval under [sections ][12A ][and ] [Accordir-rg ][to ][the'lribunal, ][the ][cviclcttcc]contained Court [proceedir-rgs ][and ][were ][complementaty ][to ][eaclt ][ollrer ]['fltey ][rvcrc]contemporalleous [and cannot be brushed aside ][as ][the ] [(Exernptions) ][has ][dottc, ][as]having evidentiary [value ][The ][eir.tile ][docutnentary ][eviderlce ][was ][pt'esctltccl ][bcforc]'o the DIT (Exemptions), [the ][police ][authontics and ][the ][crintirtal ][cottt'1s ][atttl ][lltett]cannot [be ][impeached, accorcling ][to ][the ][Tribr,rnal ]['l'l.re l'r'ibr-nrztl, ][tltcrcitrr.c']credibility held that the DIT [(Exemptions) ][was not ][justified ][r1 refusing ][to ][tzrl<e ][cogtttzrttcc ][trl']those vital documents [in ][corning ][to ][the ][conclusion ][that the ][asscssee ][- ][socicty ][ot- ][tts]trustees/ [governing body merrbers connived ][or ][coiludecl ][wilh ][Srltr-i ]['['hc rcl|acttott ][ol']A K. Sikri on [which ][reliance was placed ][by ][the ] [(Exenlptions) ][ltas ][Lrcctt ][hclcl ][lry]the Tribunal in [paragraphs ][111 ][and ][112 ][of ][its ][order ][as ][iraving ][been ]["sttdclcttl)' ][trtatlo]that too when [he was removed ][from ][the ][trust ][and ][the police ][hacl ][already ][ttnpltcitlecl] hirn alleging that he was fabricating s1ories". ['l'he ][T'ribr"rnal ][has ][also ][hclcl ][that ][Srl<r.r ][clrcl]not succeed in demolishing his earlier statements given not only [to ][the trust ][bttt ][also to]the police and the Courts and also in his bail application on the basis ol'whtclr he rvasreleased from police custody hirn alleging that he was fabricating s1ories". ['l'he ][T'ribr"rnal ][has ][also ][hclcl ][that ][Srl<r.r ][clrcl]not succeed in demolishing his earlier statements given not only [to ][the trust ][bttt ][also to]the police and the Courts and also in his bail application on the basis ol'whtclr he rvasreleased from police custody 16 Questioning [the ][correctness ][of ][the vierv taken ][by ][tire ][Triburnal ][it ][is ][contcnclcLl]by the learned standing counsel for the Revenue that the l'ribunal wetrt wr.ong in rtsappreciation of the evidence and in exonerattng tlte assessec - society [artcl ][1hc]members of the governing body from any [guilt ][or ][cuipability ][11 ][is ][contcttclecl ][that ][arr]overall appreciation of the sequence of events and ihe evidence would sr"rggcst thalthere was cgllusion between AK Sikri and the [assessee ]- soctety [in ][the rvhole ][a{lhrr]It is pointecl out that Sikri did not stand to [gain ]or [beneflt ][by ][the ][alleged acls ][o[']illegality, forgery, etc and that the ultimate beneficiary of'such acts was only thcassessee - society and this crucial aspect has been nrissed by the'I'ribLrnal Accordiugto l.lie learned standing counsel, Sikri [could not ][have had ][any nrotive ][for ][indulgrng ][in]such acts except onthe prompting or directions [of ][the metnbers ][of ][the ][govcrntng ][bocly]oftheassessee-society. Attentior-risaiso'drarvutothelactthatlhervholea[]att [c:tnte]to light only because of the complaint [of ]M [Mattsinghlca'lrust ][of ][Mtrnrbat ][lt ][rs]vehemently contended that Sikri [was ]only [acting ][as ][an ][employce ][i ][e ]['l'reasurcr o1'tltc]society without ally personal motive or benefit [and ]it ls wrong ou the [part ][o{'thc]Tribunal to have concluded that [the society ][itself ][was ][a ][victiu-t ][of ][the ][fraud allcgedly]cornmitted by Sikri 17 On the other hand, it was subrnitted on [bel-ralf ]of [the ][assessee ][- ][socicty ][tlral ][rt]took prornpt action on [receipt ][of the ][notice ][fronr ][the Advocate ][of ][M l' ][Manstttghlta]Trust of Murnbai in [Decemb.er,2005 ][until ][whrcli time ][it ][was ][totally ][LlllAwtlre ][o[-llrc]lapses and irregularities comr.nitted [by Sikri, ][tl'rat ][the applical.ion urade ][for ][regtsttittttttt]of tl.re society under section llA(a),on [l9 ][122005 ][was ][sigtred ][only ][by ][Sil.r'i ][arrd ][all]this came to light [in the ][course ][of ][the proceedings ][of the executive body ][n'rectrrrg ][held] i 17 On the other hand, it was subrnitted on [bel-ralf ]of [the ][assessee ][- ][socicty ][tlral ][rt]took prornpt action on [receipt ][of the ][notice ][fronr ][the Advocate ][of ][M l' ][Manstttghlta]Trust of Murnbai in [Decemb.er,2005 ][until ][whrcli time ][it ][was ][totally ][LlllAwtlre ][o[-llrc]lapses and irregularities comr.nitted [by Sikri, ][tl'rat ][the applical.ion urade ][for ][regtsttittttttt]of tl.re society under section llA(a),on [l9 ][122005 ][was ][sigtred ][only ][by ][Sil.r'i ][arrd ][all]this came to light [in the ][course ][of ][the proceedings ][of the executive body ][n'rectrrrg ][held] i on 28. 12.2005 [on ][receipt of ][the notice ][fi ][om ][the Advocate of ] [P. ][Mansinghka ]['l't'usl]It is submitted that [Sikri ][was present ][in ][the ][meeting ][and ][conl'essed ][to ][the ][trregrrlariltes]and even signed the minutes [of ][the meeting ][which ][recorded ][tlte ][r:onfesstcrtl ][ol' ][Stl<rt]reiiance [is ][placed on ][the findings ][and ][observations ][of ][the TribLrnal on tlre ][basts]Strolg of the chronology of [events ][starting ][fiorn ][the application ][made ][on ][19 ][122005 ][ttndcr']the sig'ature of Sikri [upto ][the ][date ][of ][his ][release ][on barl ][inclucling ][the ][stnleurctrts tttadc]by him to the [police, ][to ][tl-re ][crirninal courts ][and ][in ][his ][bail apphcatiotr ][Or-tr ][attettttotr]was also drawn to [the ][fact that ][even ][in ][the ][contplaittt ][tuade ][by ][the ][ttlcollle ][lax]authorities on 3l Lz.z0o6 [in ][FIR No ][605/2006 ][with ][the ][l(rrti ][Nagar Policc ][Stattott,]they had implicated only [K. ][Sikri ][and ][not ][any ][of ][the ][trustees ][or ][governtttg ][bocly]members of the [assessee ]- [society ][by ][name ][Frour thrs ][it ][ts ][subttritted ][by ][thc ][lcartrctl]counsel for the [assessee, ][that ][it ][was clear that ][the ][income ][tax ][aul.horitics ][llterrtsclrrcs]looked upon the AK Sikri [only ][as ][the ][person ][r.esponstblc ][for thc ][{irlse/ ][[irrgccl]certificate and all other [irregularities/ ][illegalities ]Quitc [apatl ][[r'otrt ][tlte ][a[-rove ][.]submitted the learned [counsel ][for ][the ][assessee, ][the question ][of ][concloualiot'r ][OI-clcltty ][otr]the ground of sufficient [cause ][for ][the ][delay was a ][discretion conferred ][upott ][tltc ][Cottt-t]a1d it can be interfered with [only ][if ][it ][was shown ][to ][have ][beett exerrcised ][in ][a ][pe ][rvcl ][sc]manner and so long [as ][the ][discretion ][is ][shown ][to ][have been ][exercised ][propcrly ][arrcl]having regard to [the entire ][conspectus ][of ][the facts ][ar-rd ][crrcuutstattces ][o{'tlte ][casc ][itrtd]o. the application of [the relevant principles ][of ][law, ][and ][so ][lottg ][as ][tlte ][t-elevattt ][firt:ts]have not been ignored or [irrelevant facts have ][not ][influetrced ][the ][discrction. ][the]court [acting ][under ][section ][260L ][of ][the ][Act ][should ][not ][intcrlero ][rvith ][lhe]appellate decision of the lower court [It ][is ][further ][pointed ][outthatthe ][question ][of ][llerversity ][was]not even raised by [the ][Revenue ][in ][the ][metnorandutn ][of ][appeal and, ][therelolc, tllclc]was no substance [in ][the ][appeals In ][support ][of ][these ][submissions relrance was ][Placecl]on several autl'rorities [compiled ][in the ][form ][of ][a ][paper-book] l8 The main question that [falls ][for ][our consideration ][is ][trrhether ][the I'ribunnl ][was]justified i' condonipg the delay in [the ][filing ][of ][the ][application ][for ][registratiorr ][rurclct]section 12A of the [Act ][and ][whether the ][view ][tahen ][by ][the ]['l-r.ibunal ][is pel'verse ]['l'hc]question whether there was [sufficient ][cause ][for ][the delay ][is ][always ][a questiott ][of'lhcl]as has been held by [two ][Division ][Bench judgments ][of ][this ][Court ][(t) ][C-l7- ][v. ][l'crt'rtrtt]Nand, (2004) 266 ITR [255 ][and ][(t1) ] [t,. ][ITOC.HU ][Cot'prtrotron, ][(2004) ][268l1'l\ ][172]The Tribunal has, in [an ][elaborate order in ][which ][all the ][facts ][and ][the ][rival ][sttbnrissitlrts]have been taken into [consideration, ][held that tirere was ][sufficient ][causc ][for ][lhc ][dclay]on the part of [the ][assessee ]- [society ][in ][rraking the ][applications ][for ][tegistratiorr ][t-tttclcr]section 12A and [80G ][of ][the ][Act ][lt ][is not ][necessary, ][not ls ][it ][proper, ][lor ][us ][to ][dccicle]the culpability or otherwise [of ] [I( ][Sikri ][wiro ][was ][the ][Treasurer ][of ][thc ][assessce]society. All that [we ][need ][to ][examine ][is ][whether the ][Tribr-rnal ][had ][valtcl ][tttalcrtals]before it on the [basis ][of which ][it ][could ][have ][reasonably ][corne ][to ][the ][conclustotr ][1lta1]the assessee - society [was ][prevented ][by ][sufficient ][caLlse ][in ][applyrng ][lirr ][thc]registration in tirne [It ][is ][manifest ][from ][a ][fair ][reading ][of ][the order of ][the'l'ribunal ][that]it had weighed the [circumstances ][in ][which ][the ][.assessee ]- [society was ][placecl atrd the]action it took immediately [on receipt ][of ][the complaint ][from ] [Mansinghlta ]['l'rust]of Mumbai, it has [referred ][to ][the ][confession ][of ][Sikri in ][the meeting ][o1'tire govel'nlt)g]body owning up [responsibility ][for ][having ][r-nisled ][the assessce ][socrcty ][I'v]that [the ][necessary ][application ][for ][registration ][rvere made ][itt ][tttttc" ][it ][has]representing also referred to [the action ][taken ][by ][the ][assessee ]- [society ][against ][Srhli ][rvhen ][it ][lbLrnd]that Sikri was nottaking [adequate steps ][to ][remedy ][the situation, ][it ][has ][also tefcrt.cd to]tlie police complaints [filed ][not only ][by ][the ][assessee ]- [society ][against ][Sil<rr, ][btrt ][also ][1tr]the complai't filed [by ][the ][income ][tax ][authorities against ][!'iil<ri ][whrch indicalctl ][tlrat]they also viewed [Sikri to ][be ][responsible ][1br ][the