No Deemed Registration under Section 12AA (2) of Income Tax Act if Application Not Decided in 6 Months

The Supreme Court affirmed that there is no provision for deemed registration under Section 12AA (2) of the Income Tax Act, 1961 if the registration application is not decided within the prescribed six-month period. The Court dismissed the Special Leave Petition, upholding the decision and agreeing with the interpretation of the High Court in Commissioner of Income Tax vs. Muzafar Nagar Development Authority [ITA 348 of 2008].

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Issues:
Interpretation of Section 12AA (2) of the Income Tax Act, 1961 regarding deemed registration upon non-decision within six months.

Analysis:
The Supreme Court, comprising HON'BLE MR. JUSTICE M.R. SHAH AND HON'BLE MRS. JUSTICE B.V. NAGARATHNA, addressed the issue of whether there would be deemed registration under Section 12AA (2) of the Income Tax Act, 1961 if the application for registration is not decided within six months. The Court referred to the decision of the Full Bench of the Allahabad High Court in the case of Commissioner of Income Tax vs. Muzafar Nagar Development Authority [ITA 348 of 2008], which extensively analyzed this aspect.

Upon thorough consideration of the provisions of Section 12AA (2) of the Act, the Supreme Court noted the absence of any specific provision deeming registration upon non-decision within the stipulated timeframe. Consequently, the Court affirmed the Full Bench's conclusion that there would be no deemed registration if the application is not decided within six months. The Court explicitly stated its complete agreement with the High Court's interpretation.

In conclusion, the Supreme Court dismissed the Special Leave Petition, thereby upholding the decision that there is no provision for deemed registration under Section 12AA (2) of the Income Tax Act, 1961 if the registration application is not decided within the prescribed six-month period.

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