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TMI Blog2008 (4) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year 1998-99, it was exempted under Section 10(22) of the Income Tax Act, 1961, (hereinafter referred to as the Act for short), therefore it did not seek separate registration under Section 12A of the Act, so as to claim exemption under Section 11. 3. Section 10(22) being omitted by the Finance Act, 1998, the petitioner applied for registration under Section 12A of the Act, with retrospective effect, that is since the inception of the petitioner-society i.e. 11.1.1993. An application for the purpose was duly made on 24.6.2003. Inasmuch as, under Section 12A(a) (as it stood at the time of making the application), the application was required to be made within one year from the date of creation of establishment of the Trust or Institut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed. 7. The petitioner contends, relying upon a decision of the ITAT Bangalore Bench in the case of Karnataka Golf Association v. Director of Income Tax 91 ITD 1, that the registration should be deemed to have been granted after the expiry of the period prescribed under Section 12AA(2), if no decision had been taken on the application for registration under Section 12A/12AA. Reliance has also been placed by the petitioner in the cases of Jan Daood and Co v. ITO [1978]113ITR772(All) and C.I.T. v. Rohit Organics (P) Ltd. (2000) 281 ITR 194, both of which lay down that when an application for extension of time is moved, and is not decided, it will be deemed to have been allowed. In continuation of the above, reliance has been placed upon th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Municipal Corporation at Delhi [1981]1SCR1073 . In the said decision, the Supreme Court was examining the effect of the failure on part of Delhi Municipal Corporation to decide an application under Section 313(3) of Delhi Municipal Corporation Act, 1957, for sanction to a lay-out plan within the period specified in that sub-section. The Supreme Court held in that decision that non-consideration would not amount to deemed sanction. Apart from the fact that the said Supreme Court decision was dealing with a different statute, but one of the important aspects pointed out by the Supreme Court for taking that view is the purpose of the provision requiring sanction to lay-out plans. There was an element of public interest involved namely to prev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that such cancellation would operate only prospectively. Therefore, if a view is taken that non-consideration of the registration application within the time fixed by Section 12AA(2) would amount to deemed grant of registration, the only adverse consequence likely to flow from such a view in respect of any case of that assessee arising in future would at best be some loss of revenue from that individual assessee from the date of expiry of the limitation under Section 12AA(3) till the date of cancellation of that registration, if such cancellation is called for. 13. Moreover, the view we are inclined to take as above furthers the object and purpose of the aforesaid statutory provision. In our view for the interpretation of a statute 'pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he three conditions that must be fulfilled in order to justify this course were satisfied. First, it was possible to determine from a consideration of the provisions of the Act read as a whole precisely what the mischief was that it was the purpose of the Act to remedy; secondly, it was apparent that the draftsman and Parliament had by inadvertence overlooked, and so omitted to deal with, an eventuality that required to be dealt with if the purpose of the Act was to be achieved; and thirdly, it was possible to state with certainty what were the additional words that would have been inserted by the draftsman and approved by Parliament had their attention been drawn to the omission before the Bill passed into law. Unless this third condition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sumption that members of the legislative body sought to fulfill their constitutional duties in good faith. This formulation allows the interpreter to inquire not into the subjective intent of the author, but rather the intent the author would have had, had he or she acted reasonably. 17. The Apex Court also referred to and followed its earlier decisions in Bharat Petroleum Corporation Ltd. v. Maddula Ratnawalli 2007 (6) SC 564 and Oriental Insurance Company Ltd. v. Brij Mohan and Ors. 2007 (7) SC 472, for taking recourse to the doctrine of 'purposive interpretation'. 18. The Apex Court has also applied doctrine of purposive interpretation in fiscal statutes that would be evident from its decision in CIT v. Anjum M.H. Ghaswala and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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