In a recent judgment, the Supreme Court, in the case of Society for the promotion of education adventure sports and conservation of environment has upheld Allahabad Court Division Bench judgment that effect of non consideration of the application for registration within the time fixed by Section 12AA(2) would be deemed grant of registration.

It is notable that Full Bench of the Allahabad High Court in the case of CIT vs Muzafar Nagar Development Authority , reversed the judgment of its Division Bench and had held that Non disposal of an application for registration, by granting or refusing registration, before the expiry of six months as provided under Section 12AA (2) of the Income Tax Act 1961 would not result in a deemed grant of registration.

Case Law Details:
Civil Appeal No. 1478 of 2016
Commissioner of Income Tax, Kanpur & Ors. …. Appellant(s) versus Society for the Promn. of Edn., Allahabad … Respondent(s)
Date of Order : 16-02-2016
Coram: Justice Kurian Joseph and Justice Rohinton Fali Nariman

Excerpts from the Judgment:
The short issue is with regard to the deemed registration of an application under Section 12AA of the Income Tax Act. The High Court has taken the view that once an application is made under the said provision and in case the same is not responded to within six months, it would be taken that the application is registered under the provision

The learned Additional Solicitor General appearing for the appellants, has raised an apprehension that in the case of the respondent, since the date of application was of 24.02.2003, at the worst, the same would operate only after six months from the date of the application.

We see no basis for such an apprehension since that is the only logical sense in which the Judgment could be understood. Therefore, in order to disabuse any apprehension, we make it clear that the registration of the application under Section 12AA of the Income Tax Act in the case of the respondent shall take effect from 24.08.2003.

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