Facts of the case : The assesse, a charitable Trust had applied for registration under section 12A of the Income Tax Act on 12.08.1986 and get registered.
The trust was enjoying the benefit of exemption under section 80G of the Act, thereafter there has been a constant renewal of exemption every year under section 80G of the Act.
The revenue authorities were renewing the exemption to the assessee’s trust on regular basis as per the application for renewal submitted by assesses from 1986 till 2007.
In year 2016, revenue authorities demanded for the registration certificate under section 12A of the act. The assessee could not produce the certificate.
Hence, Department refused to grant exemption under section 11 of the Act.
The assesse contended that it has made constant efforts to obtain a copy of the registration certificate from the Department and also applied for the same through RTI application.
Relevant points to be considered :
The Tribunal has highlighted the following points :
- As per section 12A, 12AA and section 11 of Income Tax Act, 1961, For granting the exemptions under section 11, it is mandatory that the trust or society must be registered under section 12A.
- On the similar facts, For renewal of registration, it is presumed that trust is already registered for granting exemption.
- Granting constant renewal under section 80G by the revenue authorities itself shows that the authority has not any doubt about the registration of the Trust. i.e. Authority has agreed to the fact that trust is registered u/s.12A of the Act.
- The only mere cause that documentary evidence was not prodiced by the assessee cannot be the ground for refusing exemption u/s.11 of the Act to the assessee
The Tribunal further added that the assessee trust has made efforts for procuring information from the Department regarding the duplicate copy of registration certificate.
The Department was not able to provide any copy of the registration certificate.
Tribunal slams that process of maintaining the record in the Department is not proper and appropriate. Due to the mistake of department, assessee cannot be penalized.
Conclusion : Revenue has accepted that the assessee-trust is registered u/s.12A of the Act since all these years they have granted 80G renewal to the assessee trust.