Taxap/459/2007 Of Director Of Income Tax [Exemption] v. Tuberculsis Research Centre

O/TAXAP/459/2007 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 459 of 2007 FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE KS JHAVERI and HONOURABLE MR.JUSTICE K.J.THAKER ================================================================1 Whether Reporters of Local Papers may be allowed to see the judgment ?1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ?judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India, 1950 or any order made thereunder ?to the interpretation of the Constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ================================================================DIRECTOR OF INCOME TAX ....Appellant(s)VersusTUBERCULSIS RESEARCH CENTRE....Opponent(s)================================================================ Appearance: MRS MAUNA M BHATT, ADVOCATE for the Appellant(s) No. 1MR BD KARIA, ADVOCATE for the Opponent(s) No. 1 ================================================================ CORAM: HONOURABLE MR.JUSTICE KS JHAVERIandHONOURABLE MR.JUSTICE K.J.THAKER Date : 11/12/2014ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1.By way of this appeal, the appellant-revenue has challenged the order dated 04.09.2006, passed by the Income Tax Appellate Tribunal, Ahmedabad [ for short “the Tribunal”] in ITA No. 1452/Ahd/2006, whereby the appeal preferred by the assessee was allowed for statistical purposes. 2.The facts, in brief, are that the appellant-revenue granted registration under Section 12AA to the respondent-assessee with effect from 01.04.2005, however, the appellant did not condone the delay in applying for registration from the date of formation of the trust. Against the said order, the assessee filed an appeal before the Tribunal. The Tribunal after hearing the parties condoned the delay and restored the matter back to the appellant to consider the issuance of registration under Section 12A from the date of formation of the trust, after giving opportunity to the assessee. Hence, this appeal is filed at the instance of the revenue. 3.While admitting this appeal on 04.12.2007, the Court had formulated the following substantial question of law:- (A) Whether the Appellate Tribunal is right in law and on facts in directing the DIT (Exemption) to grant registration to the assessee u/S.12A of the Act with effect from 19.02.1986 i.e. from the date of formation of the Trust though application was made only on 25.11.2005 without showing any sufficient cause 4.Learned counsel for the appellant-revenue has submitted that the Tribunal has committed an error in passing the impugned order. He further submitted that the Tribunal ought not to have condoned the delay and directed the appellant to consider the matter for issuance of registration under Section 12AA, after giving opportunity to the assessee. Therefore, he requested this Court to allow this appeal and quashed and set aside the order of the Tribunal. 5.On the other hand, learned advocate for the for the respondent-assessee has supported the impugned order of the Tribunal and submitted that the view taken by the Tribunal is just and proper, therefore, there is no germane reason to interfere with the order of the Tribunal. 4.Learned counsel for the appellant-revenue has submitted that the Tribunal has committed an error in passing the impugned order. He further submitted that the Tribunal ought not to have condoned the delay and directed the appellant to consider the matter for issuance of registration under Section 12AA, after giving opportunity to the assessee. Therefore, he requested this Court to allow this appeal and quashed and set aside the order of the Tribunal. 5.On the other hand, learned advocate for the for the respondent-assessee has supported the impugned order of the Tribunal and submitted that the view taken by the Tribunal is just and proper, therefore, there is no germane reason to interfere with the order of the Tribunal. 6.We have heard learned advocate for the parties and considered the submissions. It appears from the record that the trust is already enjoying exemption under Section 10(21) of the Act. Further, it appears that the application for exemption was made by the assessee on 25.11.2005 i.e. after a period of nineteen years of the formation and that too without showing any sufficient cause. Therefore, we are of the view that the Tribunal has committed an error in directing the DIT (Exemption) to grant registration to the assessee under Section 12A of the Act with effect from 19.02.1986. The Tribunal ought to have granted the exemption to the assessee from the date of application for the relevant year i.e. from 25[th ]November, 2005. Therefore, the competent authority is directed to grant exemption to the assessee to grant registration to the assessee u/S.12A of the Act with effect from 25[th] November, 2005. 7.In view of the above, the present appeal stands disposed of. The question of law involved in this appeal is answered accordingly. The order of the Tribunal stands modified to the above extent. (K.S.JHAVERI, J.) (K.J.THAKER, J) pawan