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2019 (10) TMI 254

..... application was made - HELD THAT:- At the material time, the period of six months was to be reckoned from the date on which the application was made. In case the order refusing or granting approval is not passed within a period of six months, then the moot question arises as to whether the passing of order belatedly would be considered as valid. AR fairly submitted that even if the issue on merits is now decided against the assessee, still the registration 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 .....

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..... ner on merits. It is pursuant to such restoration that the instant proceedings have taken place. 3. The factual panorama is that the assessee filed application u/s.80G of the Act in the prescribed form on 26-02-2009. The ld. CIT on first page of the impugned order held that he 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 misu .....

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..... he CIT ought to have granted registration to the assessee u/s.80G thereby allowing the assessee s appeal. 7. The Revenue approached the Hon ble High Court raising the following questions of law, 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 .....

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..... dered the questions raised before it and then restored the matter for fresh consideration. 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 genuinenes .....

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..... uirement 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, the Tribunal ca .....

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..... ring 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. 15. In the result, the appeal is allowed. Order pronou .....

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