TaxTMI 
TaxTMI 
2022 (9) TMI 40
X X X X Extracts X X X X
X X X X Extracts X X X X
....f application for registration by granting or refusing registration before the expiry of six months as provided u/s 12AA(2) of the Income Tax Act, 1961 would result in deemed grant of registration. (3) Whether in the facts and circumstances of the case and the Hon'ble Income Tax Appellate Tribunal was correct in granting deemed registration u/s 12AA without appreciating the facts that the power to grant or refuse registration is statutory power of the commissioner u/s 12AA. (4) Whether in the facts and circumstances of the case the Income Tax Appellate Tribunal has erred in substituting its own satisfaction in place of the satisfaction of the commissioner of the income tax as provided u/s 12AA of the Income Tax Act, 1961, thereby exceeding its jurisdiction." On 07.02.2014 itself, this Court had stayed the operation of impugned order dated 20.09.2013 passed in I.T.A. No.145 and 146/Lkw/2012 by Income Tax Appellate Tribunal, Lucknow. The order sheet reveals that as per report of the process server, notices had been served personally upon opposite party no.1 on 10.04.2014. However, no one is present on behalf of the respondent to contest the matter nor any objections/ counter....
X X X X Extracts X X X X
X X X X Extracts X X X X
....draw support from the Hon'ble jurisdictional High Court decision in the case of Society for the Promotion of Education, Adventure Sports & Conversation of Environment vs. CIT & Ors., 216 CTR (All) 167. In this case, following was expounded:- (Head notes only) "Charitable trust - Registration under s. 12A-Effect of non-passing of order within the time-limit - Taking the view that non-consideration of the registration application within the time fixed by s. 12AA(2) would result in deemed registration, may at the worst cause loss of some revenue or income-tax payable by the individual assessee-On the other hand, if a contrary view is taken, it would leave the assessee totally at the mercy of the IT authorities inasmuch as the assessee has not been provided any remedy under the Act against non-decision-Moreover, the former view furthers the object and purpose of the statutory provision - Thus, the better interpretation would be to hold that the effect of non-consideration of the application for registration under s. 12A within the time fixed by s 12AA(2) would be a deemed grant of registration. Respectfully following the precedent as above and also the legal provision discussed....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ery 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) or clause (ab) of sub- Section (1) of Section-12A of the Act, 1961. The application in question in this case was filed on 05.02.2010, therefore, based on the language used in sub-Section (2) of Section 12AA of the Act, 1961, the period of six months referred therein was to expire on 28/29.08.2010. The record reveals that in this case, the application was rejected on 26.08.2010 and there is no factual dispute in this regard. Therefore, rejection mentioned in sub-Section (2) of Section 12A of the Act, 1961 was before expiry of six months from the end of the month in which the application of the respondent was received. At this stage, it is not out of place to mention here that Section 12AA of the Act, 1961 refers to the procedure of registration whereas the application itself is to be filed under Section 12A of the Act, 1961 that is why reference to Section 12A in sub-Section (2) of Section 12AA of the Act, 1961. The said application for registration is for the pu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2A of the Act, 1961. Any such understanding of the provision would be against the express language of the provision. Once a decision is taken on the application within the period of six months envisaged in Section 12AA(2) then subsequent events are irrelevant so far as application of Section 12AA(2) of the Act is concerned. The period of six months referred in Section 12AA(2) has to be calculated from the end of the months in which the application under Section 12A was received and not from any other date. Therefore, we are of the opinion that substantial questions of law framed at point no.(1) has to be answered in favour of the Revenue and against the Assessee. The Tribunal was not justified in applying Section 12AA(2) of the Act, 1961 in the facts of the present case and the order of Commissioner of Income Tax, Faizabad could not have been set aside on this ground. The decision of the Tribunal is based on a misreading and misunderstanding of Section 12AA(2) of the Act, 1961, its purport and scope. As regards the substantial questions of law framed at point nos.(2) and (3), learned counsel for the appellant has placed before us a Full Bench decision of this Court rendered in Inc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s taken the view that once an application is made under the said provision and in case the same is not responded to within six months, it would be taken that the application is registered under the provision. 4. The learned Additional Solicitor General appearing for the appellants, has raised an apprehension that in the case of the respondent, since the date of application was of 24.02.2003, at the worst, the same would operate only after six months from the date of the application. 5. We see no basis for such an an apprehension since that is the only logical sense in which the Judgment could be understood. Therefore, in order to disabuse any apprehension, we make it clear that registration of the application under Section 12AA of the Income Tax Act in the case of the respondent shall take effect from 24.08.2003. 6. Subject to the above clarification and leaving all other questions of law open, the appeal is disposed of with no order as to costs." From a bare perusal of the said judgment, specifically para no.6 thereof, it is evident that Hon'ble the Supreme Court clarified the matter as to the date from which the period of six months referred in Section 12AA of the Act,....