2006 (5) TMI 490

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....ention of the learned Counsel for the petitioner is that once an application is filed under Section 12AA of the Income Tax Act, 1961 for registration, the Commissioner may call for such documents or information from the trust or institution as are required to satisfy himself about the genuineness of activities of the trust or institution and the Commissioner may also make such other inquiries as he may deem necessary. Section 12AA(b) of the Act provides that after satisfying himself about the objects of the trust or institution and the genuineness of its activities the Commissioner shall pass an order in writing registering the trust or institution or if he is not so satisfied shall pass an order in writing refusing to register the trust or....

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....te, this Court cannot hold that the said time limit is mandatory in nature nor the period of six months has been couched in negative words. Most of the time negative words indicate a mandatory intent. This Court is also of the opinion that when public duty is to be performed by the public authorities, the time-limit which is granted by the Statue is normally not mandatory but is directory in the absence of any clear statutory intent to the contrary. See Montreal Street Railway Company v. Normandin AIR 1917 Privy Council 142 at page 144. Here there is no such express statutory intent, nor does it follow from necessary implication. For this reason we cannot accept the contention of the learned Counsel for the petitioner on the interpretation....