TMI Blog2017 (8) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... -4-2017 - SHRI ANIL CHATURVEDI, AM AND SHRI VIKAS AWASTHY, JM For The Assessee : Smt. Deepa Khare For The Revenue : Shri K.K. Mishra ORDER PER VIKAS AWASTHY, JM : This appeal by the assessee is directed against the order of Commissioner of Income Tax I, Pune dated 29-11-2013 rejecting the application of the assessee for grant of registration u/s. 12AA(1)(b)(ii) of the Income Tax Act, 1961 (hereinafter referred to as the Act ). 2. The brief facts of the case as emanating from records are: The assessee is a trust registered under the Bombay Public Trusts Act, 1950 and Societies Registration Act, 1860. The assessee trust was constituted vide Memorandum of Association dated 15-01-2007. The assessee made first application for registration u/s. 12A of the Act on 01-06-2007. The said application of the assessee was not disposed of by the Commissioner of Income Tax. Despite the fact that the assessee sent reminder to Commissioner of Income Tax on 05-03-2009 to decide the application, the said application remained unattended. In the meantime assessment orders u/s. 143(3) for the assessment years 2010-11 and 2011-12 were passed on 14-03-2013 and 14-11-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and furnished the requisite documents and information on 24-10-2013. The reply of the assessee is at pages 87 and 88 of the paper book. The ld. Counsel contended that in the meantime the assessment orders u/s. 143(3) of the Act for assessment years 2010-11 and 2011-12 were passed by the Assessing Officer treating as if registration has been granted to the assessee. The Assessing Officer vide order dated 04-03-2013 for the assessment year 2010-11 and order dated 04-11-2013 for assessment year 2011-12 granted the benefit of deemed registration u/s. 12AA, as the application of the assessee was not disposed of by the Commissioner of Income Tax for the period more than 6 months. 3.1 The ld. Counsel for the assessee submitted that the Hon ble Supreme Court of India in the case of Commissioner of Income Tax Vs. Society for the Promotion of Education reported as 382 ITR 6 has held that if the assessee has not been granted registration within the period of 6 months from the date of making application, it shall be presumed that deemed registration has been granted to the assessee. The ld. Counsel further submitted that earning of significant profit is not relevant to disallow the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct that the assessee made first application for grant of registration u/s. 12AA on 01-06-2007 and the said application remained un-adjudicated till date. As per the provisions of section 12AA(2) of the Act, the order granting or refusing registration should be passed before the expiry of 6 months from the end of the month in which the application was received. It is a well settled law that if the application for grant of registration u/s. 12A is not disposed of within the stipulated time, it shall be deemed that the registration is granted to the assessee. Recently, the Hon ble Apex Court in the case of Commissioner of Income Tax and Others Vs. Society for the Promotion of Education (supra) has reiterated this position. 6. The ld. Counsel for the assessee has pointed that during the course of assessment proceedings for assessment years 2010-11 and 2011-12 it was brought to the notice of Assessing Officer that the assessee had made an application for grant of registration u/s. 12A on 01-06-2007 and the same has not been disposed of by the Commissioner of Income Tax. The Assessing Officer applying the ratio of purposive interpretation to the language of statute rendered in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Commissioner should be regarding the application of the income of the trust for the aforesaid purposes which only entitles the assessee to claim exemption. For arriving at such satisfaction primarily he has to look at the object of the trust, when the same is reduced into writing in the form of trust deed. If on the date of the application the trust has received income from its property, then find out how the said income has been expended, and whether it can be said that the income is utilized towards charitable and religious purposes, i.e., towards the object of the trust. Therefore, for the purpose of registration under section 12AA of the Act, what the authorities have to satisfy is the genuineness of the activities of the trust or institution and how the income derived from the trust property is applied to charitable or religious purpose and not the nature of the activity by which the income was derived by the trust. [Emphasised by us] Thus, in view of the facts of the case and law laid down in the case of Sanjeevamma Hanumanthe Gowda Charitable Trust Vs. Director of Income Tax (Exemptions) (supra) we are of the considered opinion that the Commissioner of Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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