TMI Blog2019 (10) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... istration would be saved by virtue of the order passed by the Tribunal on the limitation issue, which attained finality. We are convinced with the submission advanced on behalf of the assessee that even if the issue on merits is to be decided against the assessee, but the same cannot come into play unless the initial hurdle of limitation is crossed. Once the Tribunal has held that the certificate u/s. 80G(5) was deemed to have been granted on the expiry of period of six months from the date on which application was filed coupled with period of delay of 19 days attributable to the assessee, naturally the assessee gets entitled to registration u/s.80G without considering the merits as discussed by the CIT in his order passed beyond the sti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ought to have passed the order within a period of six months from the date of application. However, noting that the delay was caused by the assessee, it was opined that his order, having been passed on 28-03-2010, was within time. 4. Thereafter, he considered the application on merits and noticed several infirmities in the maintenance of accounts by the assessee and other related issues. He further took note of the fact that the grant received by the assessee was misutilized for the purpose other than that of the project, thereby hitting section 11(1) of the Act. He further observed from the Audit report that there were several irregularities reported by the Auditor. He still further noticed that the assessee gave huge loa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw, which were admitted on 10-12- 2012: 1. Whether the Tribunal is correct in Law and Facts, holding that the respondent assessee society s action in maintaining separate account in respect of vernacular project without brining into society s account which is mandatory in view of provisions of section 11 that assessee should maintain books of account in respect of grants, income received by it and its utilization? 2. Whether the Tribunal is correct in Law and facts, holding that the respondent assessee is not required to take the grant of money received from the Govt. of India, in its books which is contrary to the provisions of Sec.80G(5)(iv) of the Income Tax Act, 1961, which require maintenance of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration. Since the questions raised and admitted by the Hon ble High Court were only on merits and not on the time limitation, which issue was otherwise decided by the Tribunal in favour of the assessee, the Hon ble High Court had no occasion to deal with such issue. 9. Section 80G deals with grant of recognition. Rule 11AA contains requirements for approval of an Institution or Fund u/s.80G. Sub-rule (2) provides that the application for registration shall be accompanied by certain documents. Subrule (3) states that the Commissioner may call for such further documents or information from the institution or fund in order to satisfy himself about the genuineness of the activities of such institution or fund. Sub-rule (4) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt for grant of approval u/s.12A within a period of six months, the Hon ble Supreme Court in CIT and Another Vs. Society for the Promotion of Education (2016) 382 ITR 6 (SC) has held that once application for registration u/s.12AA was made and in case the same was not responded to within six months, it would be taken that the application was registered under the provision and hence registration/application would take effect accordingly. Though such judgment of the Hon ble Supreme Court has been rendered in the context of grant of registration u/s.12AA but its ratio decidendi would equally apply to the grant of registration u/s.80G(5) of the Act as well. 12. While disposing the appeal of the assessee in the first round, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration u/s.80G without considering the merits as discussed by the ld. CIT in his order passed beyond the stipulated period. We, therefore, hold that the order passed by the Tribunal granting deemed registration u/s. 80G(5) sans merits, still holds the field. 14. The ld. AR submitted that the assessee has filed a Review Petition before the Hon ble High Court on this very issue of deemed registration, which is still pending. In this regard, it is held that if in a subsequent proceedings, the Hon ble High Court decides the question of deemed registration against or in favour of the assessee, then the assessee or the Revenue, as the case may be, would be at liberty to file application for recalling of the instant order. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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