2021 (1) TMI 482 - HC - Income Tax

Deemed registration u/s 12AA - HELD THAT - It is a matter of record that vide order dated 08.07.2008 learned Income Tax Appellate Tribunal set aside the order of the Commissioner resulting into revival of the application for seeking exemption under Section 12A of the Income Tax Act dated 28.03.2007 submitted on 29.03.2007 and almost twelve years have passed it is deemed to have been granted registration after the expiry of six months in view of the ratio culled out in the judgments referred to above. Accordingly the application of the petitioner for registration of the Society under Section 12A of the Income Tax Act is allowed.

Summary

Issues:
1. Deemed registration under Section 12A of the Income Tax Act.
2. Delay in granting registration by the respondent.
3. Legal implications of failure to act within the statutory time limit.
4. Interpretation of relevant case laws by the court.

Analysis:

Deemed Registration under Section 12A:
The petitioner sought a declaration that they are deemed to have been granted registration under Section 12A of the Income Tax Act from a specific date due to the respondent's failure to follow directions from the Income Tax Appellate Tribunal. The petitioner had initially applied for registration on 2.8.2007, which was rejected, leading to an appeal before the Tribunal. The Tribunal's order directed the Commissioner of Income Tax to decide on the registration issue after affording a hearing. Despite almost twelve years passing without action from the respondent, the court acknowledged the petitioner's entitlement to deemed registration under Section 12A based on relevant case laws.

Delay in Granting Registration:
The court noted the significant delay of almost twelve years in taking action on the petitioner's registration application. The petitioner had to approach the court due to the inaction of the respondent. The court expressed dissatisfaction with the lack of action by the respondent, especially considering the statutory time limit for granting registration under Section 12A of the Income Tax Act.

Legal Implications of Failure to Act Timely:
The court emphasized the legal consequences of not acting within the prescribed time limit for registration applications under Section 12A. Citing case laws, the court highlighted that if no decision is made within the six-month period, the application is deemed to have been allowed. The court referred to specific judgments to support the petitioner's claim for deemed registration after the expiry of the statutory time limit.

Interpretation of Case Laws:
The court extensively analyzed and interpreted relevant case laws, including judgments from the Supreme Court and the High Court, to determine the legal principles governing deemed registration under Section 12A of the Income Tax Act. The court's decision was influenced by the interpretations provided in these judgments, which established the authority of deemed registration in cases of delayed action by the tax authorities. Ultimately, the court allowed the petitioner's application for registration under Section 12A based on the principles derived from the cited case laws.

In conclusion, the court granted the petitioner's prayers for deemed registration under Section 12A of the Income Tax Act, emphasizing the legal implications of the respondent's delay and the authoritative interpretations of relevant case laws in reaching its decision.