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2018 (7) TMI 1737 - HC - Income TaxDeemed registration under Section 12A - whether Tribunal is right in deeming the application as being condoned and in directing the CIT to condone delay and to grant registration under Section 12A of the I. T Act? - mandatory provision of consideration of application - Held that:- Section 12AA(2) specifically provides that on an application, an order granting or refusing registration shall be passed before the expiry of the six months of the date on which the application was received. We also directed the revenue to produce the files, which are before us. We see from the files that the application was filed on 10. 10. 2006. A report was called for from the Income-Tax officer which was submitted only on 24. 07. 2007, after almost nine months. The communication of the Commissioner of Income-Tax based on which such report was made also is seen to be dated 12. 01. 2006 referred to in the report of the Income-Tax Officer. The Income-Tax Officer has recommended the registration under Section 12AA(2). However an adverse report is seen authored by the Joint Commissioner of Income-Tax dated 31. 07. 2007 addressed to the Commissioner of Income-Tax. There has been some adjournments later and eventually the order impugned before the Tribunal dated 29. 11. 2007 was passed. We cannot but notice that there was unreasonable delay insofar as complying with the mandatory provision under Section 12AA(2). The officers of the Department are necessarily bound by the directions so issued by the CBDT; which in the present case is a reiteration of the mandate statutorily prescribed. In the present case, we see failure to comply with the mandatory provision as provided under section 12AA(2); the circular having come later to the impugned order. - Decided in favour of assessee
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