Law:

Section:

Section 12A of the Income-tax Act, 1961 - Charitable or religious trust - Registration of - Assessment years 2003-04 to 2005-06 - Whether where a trust/institution fulfils all conditions mentioned in section 12A/12AA, registration cannot be denied on ground that some conditions of sections 11 and 12 are not fulfilled - Held, yes - Whether there is no requirement under Act that an institution constituted for advancement of any object of general public utility must be registered as a trust to be entitled to registration under section 12A - Held, yes - Assessees-committees were created under U.P. Krishi Utpadan Mandi Adhiniyam, 1964 with object to regulate sale and purchase of agricultural produce and also to develop facilities for farmers, so that they could get best price of their produce without middlemen - By virtue of section 10(20), those committees were exempted from clutches of Act - However, said provision was amended with effect from 1-4-2003 and assessees were brought under purview of Act - So, they claimed to be charitable institutions, and for that purpose, necessary applications were made under section 12A which were rejected by Commissioner, inter alia, on ground of delay in filing applications - Tribunal, however, granted registration condoning delay - Facts revealed that delay occurred as some officers of committees were under a bona fide belief that after amendment to section 10(20) status quo was continuing and there was no need to obtain registration under section 12A and, further, assessees being statutory bodies, applications could be filed only after getting permission from controlling authority which took considerable time - Whether, on facts, there was sufficient reason for condoning delay - Held, yes Section 2(15) of the Income-tax Act, 1961 - Charitable purpose - Assessment years 2003-04 to 2005-06 - Whether even if there is some profit in activity carried on by trust/institution, so long as its dominant object is of general public utility, it cannot be said that said trust/institution is not established for charitable purposes - Held, yes - Whether, on facts stated under heading 'charitable or religious trust - Registration of',…

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