TMI Blog2003 (7) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee's case is not a fit case for grant of registration under section 12A of the Act. The application of the assessee was rejected by the impugned order. 3. The assessee, apart from reiterating the contentions it had taken before the DIT (Ex.), has pointed out that the impugned order is hopelessly beyond the time prescribed under section 12AA(2) of the Act and the DIT(Ex.) had become functus officio on the expiry of limitation and could not have passed the impugned order, which is liable to be quashed. The assessee, in the present appeal, also seeks remedy by way of grant of registration on the principles of equity and justice. 4. We have heard the parties mainly on I he question of limitation. We have not heard the parties on the merits of the case. We, therefore, proceed to dispose of the preliminary issue as regards the validity of the impugned order. 5. The learned Departmental Representative Shri Amitabhkumar, on the other hand, has questioned the very validity of the appeals filed. The learned Departmental Representative pointed out that the appeals filed are defective inasmuch as the same were not signed in the manner laid down by section 140 of the Act and, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be vacated. We, therefore, are left with no other alternative but to quash the impugned order. We, therefore, agree with the assessee that the DIT has become functus officio on the expiry of limitation and could not have passed the impugned order. 8. Now, the assessee wants us, on the principle of equity and justice, to order the grant of registration. The main contention of the assessee in this regard is that the Department cannot pass an order refusing to grant registration under section 12AA beyond the expiry of six months. Therefore, the Department could have either granted registration within a period of 6 months or should have refused registration within that period. It has refused registration after the period of limitation, which it could not do in the eye of law. Therefore, it follows that the assessee should be held to be entitled to registration on the basis of application submitted by it and the principles of equity and justice should come to the rescue of the assessee and the Tribunal should direct for grant of registration. The learned counsel further pleaded that the Department cannot take advantage of its own latches and negligence to pass order within the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, accorded registration. In other words, the Act did not provide for procedure for registration till such procedures were prescribed by introduction of section 12AA by the Finance (No. 2) Act, 1996 with effect from 1-4-1997. The provisions of section 12AA, which are the bone of contention in the present appeal, are reproduced below :- "Section 12AA. Procedure for registration - (1) The Chief Commissioner or Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) of section 12A, shall- (a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf; and (b) after satisfying himself about the objects of the trust or institution and the genuineness of its activities, he (i) shall pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant. Provided that no orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Departmental Representative is vehemently opposing. The assessee has made an application within the prescribed time. The authority before whom such an application is made should have acted diligently within the time limit prescribed by the Act. Beyond the prescribed time limit, the said authority cannot act so as to deprive the assessee the benefit of registration. Even if the authority had granted registration after the prescribed time limit, although it is barred by limitation, the assessee would have accepted it since it is to its benefit and the Department would have accepted the said order as there is no right of appeal to the Department against the order granting registration to the assessee. In other words, the order granting registration to the assessee would have survived to the benefit of the assessee had said order been passed, although in the eyes of law, even such an order is liable to be questioned on the basis of principles of law of limitation. The Department, by failing to pass an order within the prescribed time limit, cannot be seen to be refusing to grant registration just by its own lapse. In other words, the latches and the lapse on the part of the Department ..... X X X X Extracts X X X X X X X X Extracts X X X X
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