2013 (3) TMI 268

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....that it could be assumed that the registration had been granted to the Trust if the application was not either accepted or rejected within a period of six months from the end of the month in which such application was filed by the applicant Trust? 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in adjudicating on the issue that has not been raised by the applicant Trust either in the grounds of appeal filed by the Trust in Form 36 or at the time of hearing by filing additional grounds? 2. Respondent Trust was created on 04.08.2003. It had made an application for registration under Section 12AA of Income Tax Act on 31.8.2005. As per Section 12AA of the Act, application for regis....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s, by the order dated 03.02.2009, the CIT rejected the request of the Respondent to grant registration with effect from 01.04.2005 and held that there was no just and reasonable cause for the delay in filing the application. 5. In the appeal preferred by the Respondent, Tribunal held that in the matter of condonation of delay, a pragmatic approach should be adopted and substantial cause or justice should not be deviated merely on pedantic reasons. Tribunal further held that the original application dated 31.8.2005 was to be treated as accepted and registration under Section 12AA was to be assumed to have been granted to the Trust. Tribunal also held that as per Section 12AA(2) of the Act, when the application for registration is filed, t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r the Respondent. 8. Section 12AA(2) of Income Tax Act reads as under:- Every order granting or refusing registration under clause (b) of sub-section (1) shall be passed before the expiry of six months from the end of the month in which the application was received under clause (a) [or clause (aa) of sub-section (1)] of Section 12A. As per the above provision, the Authority is expected to pass an order in the application for registration either by granting or by refusing before the expiry of six month from the end of the month in which application was received. 9. In 2006 (II) OLR 75 [Srikhetra, A.C. Bhakti-Vedanta Swami Charitable Trust v. The Assistant Commissioner of Income Tax and another], the Orissa High Court took the vie....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....page 144. Here there is no such express statutory intent, nor does it follow from necessary implication. 10. We are also of the view that the time frame under sub-section (2) of Section 12AA of Income Tax Act is only directory. Tribunal was not right in holding that not passing order in the application within the stipulated period of six months would automatically result in granting assumed registration to the Trust. 11. While considering the case of lodging assessee's application for registration of Trust, in (2011) 237 CTR (Mad) 509 [Director of Income Tax (Exemption) v. Anjuman-E-Khyrkhah-E-Aam], this Court held that Section 12AA (1)(b)(i) and (ii) of Income Tax Act makes it clear that there is a statutory mandate imposed on the De....