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SUPREME COURT OF INDIA
M.R. Shah, B.V. Nagarathna, JJ.
Harshit Foundation Sehmalpur Jalalpur Jaunpur – Appellant
Versus
Commissioner of Income Tax Faizabad – Respondent
Petition(s) for Special Leave to Appeal (C) No(s). 26978 of 2017 (Arising Out of impugned final judgment and order dated passed by the High Court of Judicature at Allahabad in ITA Defective No. 24 of 2013)
Decided On : 22-04-2022
Section 12AA - Income Tax Act - Non-deciding registration application within six months does not result in deemed registration
Fact of the Case:
The court considered whether non-deciding the application for registration under Section 12AA(2) of the Income Tax Act within six months would result in deemed registration.
Finding of the Court:
The court analyzed the provisions of Section 12AA(2) and the decision of the Full Bench of the Allahabad High Court, concluding that there is no provision for deemed registration if the application is not decided within six months.
Issues: The main issue was whether non-deciding the registration application within six months would lead to deemed registration.
Ratio Decidendi: The court found that the absence of a specific provision in the Act for deemed registration in such cases led to the conclusion that there would be no deemed registration.
Final Decision: The Special Leave Petition was dismissed, affirming the view that non-deciding the registration application within six months does not result in deemed registration.
ORDER
1. We have heard Mr. Abhinav Mehrotra, learned counsel appearing on behalf of the petitioner and Mr. N. Venkataraman, learned ASG appearing on behalf of the respondent.
2. The only question which is posed for consideration before the High Court was whether on non-deciding the application for registration under Section 12AA (2) of the Income Tax Act, 1961 (for short 'the Act') within a period of six months, there shall be deemed registration or not.
3. The aforesaid aspect has been dealt with and considered in detail by the Full Bench of the Allahabad High Court in its decision in the case of Commissioner of Income Tax vs. Muzafar Naqar Development Authority [ITA 348 of 2008].
4. After considering in detail the provisions of Section 12AA (2) of the Act and having found that there is no specific provision in the Act by which it provides that on non-deciding the registration application under Section 12AA (2) within a period of six months there shall be deemed registration, the Full Bench of the High Court has rightly held that even if in a case where the registration application under Section 12AA is not decided within six months, there shall not be any deemed registration.
5. We are in complete agreement with the view taken by the Full Bench of the High Court.
6. The Special Leave Petition stands dismissed.
Non-deciding the registration application under Section 12AA(2) of the Income Tax Act within six months does not lead to deemed registration.
The main legal point established in the judgment is that the rejection of an application within the stipulated period of six months is valid, and subsequent decisions taken after an appeal are not af....
The Income-Tax Act does not provide for deemed registration of trusts if the application is not decided within six months, as confirmed by the Supreme Court.
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