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| The Tax Publishers2020 TaxPub(DT) 1500 (Guj-HC) : (2020) 315 CTR 0101 : (2020) 273 TAXMAN 0455 INCOME TAX ACT, 1961
Section 12AA
Non-consideration of application for registration within statutory period of six months does not lead to automatic grant of registration.
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Charitable trust - Registration under section 12AA - Application for registration not decided within a period of six months from the date of filing - Whether registration could be deemed to be granted
Assessee made online application for registration under section 12AA on 23-1-2017 in Form No. 10A under Rule 11AA along with the Registration Certificate issued by Charity CCIT(A) by Letter, dated 5-2-2018, called for details of various activities actually carried out by the assessee and after considering details submitted, rejected the application for registration. Assessee preferred appeal before ITAT. Tribunal took note of the fact that while passing order rejecting application for registration, CIT(A) had wrongly mentioned the date of receipt of the application for registration as 23-1-2018 instead of 23-1-2017. The Tribunal, relying on sub-section (2) of section 12AA held that as the application for registration was not decided within a period of six months from the date of filing, registration could be deemed to have been granted. Held: On plain reading of sub-section (2) of section 12AA, it cannot be said that merely on the ground that the application filed by Trust under section 12AA is not decided, for any good reason, within a period of six months from the date of filing, registration is deemed to be granted. Accordingly, matter was remitted back to the Tribunal for deciding the same on merits after giving an opportunity of hearing to assessee.
REFERRED :
FAVOUR : Matter remanded.
A.Y. :
IN THE GUJARAT HIGH COURT
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