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2013 (4) TMI 490 - MADRAS HIGH COURTDeemed registration u/s 12AA - Whether Tribunal was right in setting aside the order of the CIT as the order was not passed within six months from the date of filing without appreciating the said time limit prescribed was only directory and not mandatory - Held that:- In the matter of Commissioner of Income Tax I, Salem v. Sheela Christian Charitable Trust(2013 (3) TMI 268 - MADRAS HIGH COURT), wherein by following the decision of this Court reported in Director of Income Tax (Exemption) v. Anjuman-E-Khyrkhah-E-Aam)(2010 (12) TMI 957 - Madras High Court )- We held that there is no automatic or deemed registration if the application filed U/s 12AA was not disposed of within the stipulated period of six months - We further held therein that the time frame fixed under the said provision is only directory. On merits - The Commissioner of Income Tax held that there is no element of charity involved in the process of money lending by the Assessee Company and the activity of Assessee Company is not of charitable nature. The order of the Tribunal is set aside and the matter is remitted back to Commissioner of Income Tax, Salem for consideration of the matter afresh - The appeal is allowed. The Commissioner of Income Tax, Salem shall consider the Assessee's application afresh and afford sufficient opportunity to the Assessee Company and pass orders - The question of law is answered accordingly.
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