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A delay of 5 years and 10 months without any original supporting evidence or the instrument of formation of the society and its bye-laws costs a society exemption for old years vide [2021] 432 ITR 397 (Mad) @YOUNG WOMEN’S CHRISTIAN ASSOCIATION. In the second the department pointed out that the amended deed/bye-laws filed did not have the necessary clauses as enumerated on page 1 of the Commissioner of Income-tax order, which are mandatory for granting registration under section 12AA. At the instance of the Tribunal, the assessee filed amended bye-laws to make good the clauses but insisted on grant of exemption for a delayed period which was declined.
The High Court found an SC decision in 217 ITR 699 in their hands to state that a rectification/amendments made to the bye-laws of the society would only operate prospectively while granting registration under section 12AA of the Income-tax Act.
the SC decision which was pronounced under the 1922 Act has found in that case conflicts on the charitable nature of objects post amendment so that there could have been a valid reason to hold an amendment to be prospective unlike in the present case which ran a technical flaw in the nature of incomplete documentation.
Further, the department never did question the actual rendering on of charitable activities all through since inception. Unfortunately, it had to suffer a defeat.

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