Per R.V. Easwar, Vice President. - The appeal has been referred to the Special Bench and the following question has been posed for decision :

"Whether in a case where the Commissioner of Income-tax does not pass the order granting or refusing registration of Trust within the period laid down in section 12AA(2) registration would be deemed to have been granted to the Trust or Institution automatically on expiry of the period specified in section 12AA(2) of the Act?"

2. A few basic facts may be stated now. The assessee is a charitable institution. It applied to the CIT for registration under section 12A of the Income-tax Act on 23-10-2001. Under section 12AA(2) every order granting or refusing registration shall be passed by the CIT before the expiry of six months from the end of the month in which the application was received by him. In the case before us the CIT ought to have passed an order granting or refusing registration on or before 30-4-2002. He however passed the order refusing registration to the trust on 26-5-2003 which was beyond the period laid down in section 12AA(2). He had however initiated certain enquiries by letter dated 3-4-2002, which was well within the perio