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2019 (4) TMI 782 - HC - Income TaxDeemed grant of registration u/s 12AA - limitation prescribed under Section 12AA expired - tribunal remanded the matter back to the CIT(E) on the premise that it had not communicated the assessing officer’s report to the assessee - After remand of the matter CIT (E) passed fresh order and rejected application of the assessee holding that the assessee was running the hospital for the benefit of family members of Shri B.L. Ranwa and there was no charity in it - nature of object” and “genuineness of activities” - HELD THAT:- Once the matter was remanded back to the CIT(E) then the limitation for passing the order/decision cannot be more than the limitation provided for deciding the application under Section 12AA of the Act. There is no dispute that as per the provisions of Section 12AA(2) of the Act, limitation for granting or refusing the registration is prescribed as before expiry of six months from the end of the month in which the application was received. Relying on the judgment of the Supreme Court in Commissioner of Income Tax, Kanpur & Others Vs. Society for the Promn. Of Edn. Allahabad [2016 (2) TMI 672 - SUPREME COURT] which upheld the judgment of CIT Vs. Sahitya Sadawart Samiti (2017 (8) TMI 374 - RAJASTHAN HIGH COURT) held that once the limitation prescribed under Section 12AA expired and the consequential default on the part of the CIT(E) in deciding the application would result deemed grant of registration is a settled proposition. Therefore, it has been held by the Tribunal that the judgment of the CIT(E) is reversed on merits and registration would stand granted to the assessee by prescription of law made in Section 12AA(2) of the Act. The Tribunal in this behalf relied on the judgment of Lucknow Bench of the Tribunal in Harshit Foundation Vs. CIT (2014 (6) TMI 298 - ITAT LUCKNOW) in which case it was held that where the Commissioner does not pass any order even after six months from receipt of Tribunal’s order remitting the matter to him, the registration will be deemed to have been granted. This is subject to exercise of Commissioner’s power under Section 12AA(3) of the Act in appropriate cases.
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