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May 2015

Charitable Trust – Registration – Section 12AA(2) – Period of six months provided in section 12AA(2) for disposal of application is not mandatory – Non disposal of application before expiry of six months does not result in deemed grant of registration –

By K. B. Bhujle Advocate
Reading Time 1 mins
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CIT vs. Muzafar Nagar Development Authority; 372 ITR 209(All)(FB)

The following question of law was raised in an appeal by the Revenue:

“Whether the non-disposal of an application for registration, by granting or refusing registration, before the expiry of six months as provided u/s. 12AA(2) of the Income-tax Act, 1961, would result in deemed grant of registration?”

The Full Bench of the Allahabad High Court held as under:

“Parliament has carefully and advisedly not provided for a deeming fiction to the effect that an application for registration would be deemed to have granted, if it is not disposed of within six months. Therefore, nondisposal of an application for registration before the expiry of six months as provided u/s. 12AA(2) would not result in a deemed grant of registration.”

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