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Income Tax Appellate Tribunal, “A” BENCH, MUMBAI
O R D E R PER C.N. PRASAD, J. M: This appeal is filed by the assessee against the order of CIT-III, Thane, dated 31.3.2013 passed under section 12AA(1)(b)(ii) of the Income Tax Act, 1961 in rejecting the registration to the assessee trust u/s 12AA of the Act.
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. The ld. DR vehemently supported the order of the Ld.Commissioner of Income Tax.
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.
2. There is no appearance on behalf of the sole respondent despite service of notice and adjournment sought for on a couple of occasions earlier.
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.
5. We see no basis for such 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 the 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.”
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. .