KERLA SAMAJAM VASAI EAST,THANE vs. CIT III, THANE

In this appeal, the assessee challenged the order of Commissioner, Thane in rejecting the application for registration u/s 12A of the Act. The 2 ITA 2756/Mum/2014 ld. Counsel for the assessee submits that the assessee filed an application for granting of registration u/s 12AA on 20.12.2010 and subsequently vide letter dated 28.2.2013 the case was posted for hearing on 11.3.2013 i.e. after a period of 2 years and 2 months from the date of filing of the appeal. However, since the assessee could not furnish details on this date, the application for registration was rejected by the Commissioner vide order dated 31.3.2013. The ld. Counsel for the assessee placing reliance on the decision of the Hon’ble Supreme Court in the case of CIT V/s Society for Promn. Of Edn. Reported in (2016) 67 taxmann. Com 264 (SC) submits that when the application filed u/s 12A for grant of registration was not acted upon by the CIT within a period of six months from the date of filing of application for registration, the application for registration should be deemed to have been allowed. The ld. Counsel for the assessee submits in its case the application for registration was filed on 20.12.2010 and the ld.Commissioner of the Income Tax did not respond to the application within the stipulated time of six months but rejected the application after 26 months. Therefore, he submits that since the CIT did not act upon the application within the stipulated time of six months, the registration is deemed to have been granted, in view of the decision of the Hon’ble Supreme Court in the case of Society for Promn. Of Edn(supra).

3 ITA 2756/Mum/2014 We have heard the rival submissions and perused the 4. Ld.Commissioner’s order and the decision of the Hon’ble Supreme Court in the case of Society for Promn. Of Edn (supra). The Hon’ble Supreme Court in this decision has held as under : “Kurian, Joseph, J. - Leave granted.

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.

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.

We have observed from the order of the Hon’ble Supreme Court that the Honb’le Supreme Court has affirmed the decision of the Hon’ble High Court in holding that once an application is made for registration and such application for registration is not responded to within six months it would be taken that the application is registered under the provisions of section 4 ITA 2756/Mum/2014 12AA of the Act. Thus, respectfully following the Apex Court, we hold that in this case, the assessee filed an application on 20.12.2010 and since the Commissioner did not respond within six months from the date of filing such application it is deemed that the application is registered u/s 12AA of the Act on 20.6.2011. We also hold that the subsequent rejection by the Commissioner after expiry of six months has no relevance as the registration is deemed to have been granted to the assessee-trust when once the application is not acted upon within six months. In view of this legal position, the appeal of the assessee is allowed.

In the result, the Appeal filed by the assessee is allowed. .