COMMISSIONER OF INCOME TAX Vs. GOODEARTH FOUNDATION

JUDGEMENT

(1.) THE present case is a saga of errors from both the assessee and the revenue. Perhaps the assessee is more at fault. THE assessee is a society which claims that it is carrying on charitable activities. It was formed in the year 1979. THE society never filed income tax return till at least 2003. THE society had a school in Alwar and the school treating itself as an assessee, though it was not an assessee, was filing returns with the Assessing Officer at Alwar. THE school claimed that it was carrying on charitable activities. THE Assessing Officer at Alwar continued to assess and treat the school as a separate assessee undertaking charitable activities. We may also note that on 1.4.2002, the respondent-society took over activities of another school at Faridabad.

(2.) THE respondent-society filed its return of income for the assessment year 2003-04 at Delhi in respect of the two institutions including the income of the APS School at Alwar and Eicher Education Welfare society, Faridabad. On 2.12.2003, the respondent-society filed an application in Form 10A for registration under Section 12A of the Income Tax Act, 1961 (herein referred as `Act') w.e.f. 1.4.2002. By order dated 17.6.2004, the Director of Income Tax (Exemption) granted registration w.e.f. 1.4.2003. He rejected the request/prayer of the respondent-society for registration w.e.f. 1.4.2002.

(3.) AFTER a delay of more than 3 years & 4 months the respondent- society on 11.6.2008 filed an appeal against the order dated 17.6.2004 passed by the Director of Income Tax (Exemptions) granting registration under Section 12A w.e.f. 1.4.2003. In this appeal they had prayed that the exemption should be granted w.e.f. 1.4.1997. We may note here that in the application which was filed before the DIT(Exemption), the registration under Section 12A was sought w.e.f. 1.4.2002 and not w.e.f. 1.4.1997. We may also record here that the school at Alwar had filed an application under Section 12A before Commissioner of Income Tax, Alwar on 28.12.2005 seeking retrospective registration w.e.f. 1.4.1997. The application was rejected. The school thereafter preferred an appeal before the Tribunal at Jaipur.