TMI Blog2018 (7) TMI 1737X X X X Extracts X X X X X X X X Extracts X X X X ..... iled on 10. 10. 2006. A report was called for from the Income-Tax officer which was submitted only on 24. 07. 2007, after almost nine months. The communication of the Commissioner of Income-Tax based on which such report was made also is seen to be dated 12. 01. 2006 referred to in the report of the Income-Tax Officer. The Income-Tax Officer has recommended the registration under Section 12AA(2). However an adverse report is seen authored by the Joint Commissioner of Income-Tax dated 31. 07. 2007 addressed to the Commissioner of Income-Tax. There has been some adjournments later and eventually the order impugned before the Tribunal dated 29. 11. 2007 was passed. We cannot but notice that there was unreasonable delay insofar as complying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of fee, deposits, contributions etc. , from the students and their parents. Though the trust was essentially for setting up of an educational institution, there was no charity involved is the specific finding. The applicant had constituted a trust in the year 2002, the creation of the deed being on 27. 05. 2002 and filed an application only on 10. 10. 2006. There was considerable delay in filing such application and there were not sufficient reasons stated for condoning such delay. Challenging the order of the Tribunal, it is also pointed out that though a period of six months is provided under Section 12AA(2), there is no deeming provision as such in the statute and in such circumstance, there could not be a deemed registration under S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stration merely for reason of non-disposal, within six months, of an application for registration filed under Section 12AA. On a reading of the Full Bench decision, which has a persuasive power and also the decision of the Special Bench of the Tribunal, we are inclined to follow the Full Bench decision of the Allahabad High Court. Without a specific deeming provision there can be no grant of deemed registration under Section 12AA (2002) 9 SCC 1 [Appollo Tyres v. CIT, Kochi] . There can be no fiction created by mere inference, in the absence of a specific provision deeming something to be other than what actually it is. Then, the fact assume significance as to what was the view of the Department insofar as the mandatory provision of consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... every order granting or refusing registration under clause (b) of sub-section (1) of that section shall be passed before the expiry of six months from the end of the month in which the application was received under clause(a) or clause(aa) of the sub-section (1) thereof . Thus while processing the application under Section 12 AA of the Act, the time limit of six months has to be adhered to by the Commissioner of Income Tax(Exemptions) . However, it has been brought to the notice of the Board that the said time limit has not been observed in some cases . 2 . The undersigned is directed to convey that the aforesaid time limit of six months is to be strictly followed by the Commissioner of Income Tax (Exemptions) while passing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the opinion of the Department is the argument. It is also urged that this Court should be concerned with the interpretation of the provision to advance the course of law and not a mere concession by a Counsel before the Hon'ble Supreme Court in a solitary instance. 9. On a reading of the order passed in (2017) 11 SCC 480, we are not convinced that there was any concession made by the learned Additional Solicitor General who appeared in the matter for the Income-Tax Department. As we discern from the order, the Commissioner of Income-Tax, Kanpur had filed an appeal from the deemed registration granted under Section 12A for reason solely of an application under Section 12AA of the Act having not been acted upon for six months. The app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ressed by the Allahabad High Court, regarding deemed registration under Section 12A for reason only of non consideration of an application under Section 12AA within a period of six months from the date of filing, having not been differed from by the Hon'ble Supreme Court in the Civil Appeal; the declaration by the High Court assumes the authority of a precedent by the Hon'ble Supreme Court on the principles of doctrine of merger. Despite the compelling persuasion of the learned Senior Counsel to interpret the provision as has been interpreted by the Full Bench of the High Court of Allahabad we find ourselves, incapacitated so to do and obliged to respectfully follow (2017) 11 SCC 480. In such circumstance, respectfully following ..... X X X X Extracts X X X X X X X X Extracts X X X X
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