INCOME TAX ACT, 1961

Section 12AA

Charitable trust - Registration under section 12AA - Non-granting of registration within six months from remand by Tribunal - Deemed grant of registration

Assessee-society running a hospital filed application in Form 10A seeking registration under section 12AA. CIT(E) rejected the application vide Order, dt. 23-7-2010. Assessee challenged that order by filing appeal before Tribunal which vide Order, dt. 22-7-2011 set aside Order, dt. 23-7-2010 and remanded the matter back CIT(E). After remand of the matter, CIT(E) passed fresh order on 9-10-2015 and rejected application of assessee holding that assessee was running hospital for benefit of family members one 'B' and there was no charity in it. Held: Once matter regarding registration under section 12AA was remanded back to CIT(E) and CIT(E) did not pass any order even after six months from receipt of Tribunal's order remitting the matter to him, registration under section 12AA had to be deemed to have been granted. However, it might be subjected to exercise of Commissioner's power under section 12AA(3).

Relied on:CIT, Kanpur & Ors. v. Society For The Promn. of Edn., Allahabad 2016 TaxPub(DT) 1237 (SC): (2016) 382 ITR 6 (SC), CIT v. Sahitya Sadawart Samiti 2017 TaxPub(DT) 2042 (Raj-HC) : (2017) 396 ITR 46 (Raj) and Harshit Foundation, Jaunpur v. CIT 2013 TaxPub(DT) 2241 (Luck-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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