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2020 (3) TMI 436 - HC - Income TaxExemption u/s 11 - Deemed registration u/s 12AA - Charitable activity or not - no order was passed within 6 months from the date of application u/s 12A - HELD THAT:- From the various pronouncements, the principle discernible is that, it is the bounden duty of the court to ascertain for what purpose the legal fiction has been created. It is also the duty of the Court to imagine the fiction with all real consequences and instances unless prohibited from doing so. That apart, the use of the term deemed has to be read in its context and further the fullest logical purpose and import are to be understood. It is because in modern legislation, the term deemed has been used for manifold purposes. We find it difficult to subscribe to the views expressed by the Kerala High Court in the case of TBI Education Trust [2018 (7) TMI 1737 - KERALA HIGH COURT] , wherein the court has relied upon the decision of the Supreme Court in the case of Kunhayammed v. State of Kerala [2000 (7) TMI 67 - SUPREME COURT]. The Supreme Court decision does not lay down any principle of law. In such circumstances, deemed registration cannot be granted on the ground that the application filed by the Trust under Section 12AA is not decided, for any good reason, within a period of six months from the date of filing. In the result, the Appeal is allowed.
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