LIONS FOUNDATIONS KERALA vs. THE COMMISSIONER OF INCOME-TAX

speaking order.

WP(C).No.14974 OF 2020 -5-

WP(C).No.14974 OF 2020 -6- relied upon the judgment of the Supreme Court in Commissioner of Income Tax, Kanpur and Ors. V. Society for the Promn. Of Edn., Allahabad [2016] 382 ITR 6(SC) and the Division Bench of this Court in The Commissioner of Income Tax, Cochin V. TBI Education Trust (2019) 306 CTR (Ker)295 but no satisfactory explanation has come forward nor any counter has been filed. Such a laxity on the part of a very responsible office do not require any pardon or to be accepted in any court proceedings as almost twelve years had gone by, where no action has been taken. In the judgments cited above, the Division Bench of this Court by taking into consideration, the provisions of Section 12A of the Income Tax Act, noticed that on the submission of the application, if no decision is taken within the period of six months, the application is deemed to have been allowed. Para 9 of the judgment in Commissioner of Income Tax, Cochin (supra), reads thus: “On a reading of the order passed in (2017) 11 SCC 480, we are not convinced that there was any WP(C).No.14974 OF 2020 -7- concession made by the learned Additional Solicitor General who appeared in the matter for the Income- Tax Department. As we discern from the order, the Commissioner of Income-Tax, Kanpur had filed an appeal from the deemed registration granted under Section 12A for reason solely of an application under Section 12AA of the Act having not been acted upon for six months. The appeal arose from the judgment dated 03.04.2008 of the High Court of Judicature, Allahabad. When the matter was considered by the Hon'ble Supreme Court, the Full Bench decision of the Allahabad High Court cited, herein above, by the Revenue was passed and we do not see the said decision having been placed before the Hon'ble Supreme Court. Rather than a concession, the learned Additional Solicitor General specifically informed the Hon'ble Supreme Court that the only apprehension of the Department was regarding the date on which the said deemed registration, would be effected; whether it is on the date of application or on the expiry of six months. The Civil Appeal before the Hon'ble Supreme Court was disposed of expressing the apprehension to be unfounded, but all the same clarifying that the registration of the of the application under Section 12AA would only take effect from the date of expiry of six months from the date of application. The effect of disposal of a Civil Appeal as has been laid down in WP(C).No.14974 OF 2020 -8- Kunhayammed

V.

State

of Kerala MANU/SC/0432/2000: [(2000) 245 ITR 360 (SC)]

hence assumes significance. The Hon'ble Supreme Court in 2017 (11) SCC 480; in a Civil Appeal, approved the judgment of the Allahabad High court allowing deemed registration under Section 12AA; but applicable only from the date of expiry of the six month period as mandated in sub-section (2) of Section 12AA. The judgment of the High Court merges in the judgment of the Hon'ble Supreme Court. The opinion as expressed by the Allahabad High Court, regarding deemed registration under Section 12A for reason only of non consideration of an application under Section 12AA within a period of six months from the date of filing, having not been differed from by the Hon'ble Supreme Court in the Civil Appeal; the declaration by the High Court assumes the authority of a precedent by the Hon'ble Supreme Court on the principles of doctrine of merger. Despite the compelling persuasion of the learned Senior Counsel to interpret the provisions as has been interpreted by the Full Bench of the High Court of Allahabad we find ourselves, incapacitated so to do and obligated to respectfully follow (2017) 11 SCC 480.”

“3. The short issue is with regard to the deemed registration of an application under Section 12AA of the Income Tax Act. The High Court has 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.

WP(C).No.14974 OF 2020 -10- 08.07.2008, learned Income Tax Appellate Tribunal set aside the order of the Commissioner resulting into revival of the application for seeking exemption under Section 12A of the Income Tax Act dated 28.03.2007 submitted on 29.03.2007 and almost twelve years have passed, it is deemed to have been granted registration after the expiry of six months, in view of the ratio culled out in the judgments referred to above. Accordingly, the application of the petitioner for registration of the Society under Section 12A of the Income Tax Act is allowed. Writ petition is disposed of with the aforementioned directions. AMIT RAWAL vv JUDGE

WP(C).No.14974 OF 2020 -11-