The Supreme Court, In The Case Of Commissioner Of Incometax And Another v. The Decision Of The Allahabad High Court Reported In Thecase Of Society For The Promotion Of Education Adventure Sport &Conservation Of Environment Vs. Commissi

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 18.10.2019CORAM :THE HONOURABLE DR.JUSTICE ANITA SUMANTHW.P.No.32040 of 2013 Navadisha Educational Trust,No.635/1, 3[rd] Cross Street,Kalki Nagar,Near AG'S Colony VI Main Rd,Velachery, Chennai – 600 042.Represented by its Managing Trustee,Rukmani Ramachandran... Petitioner 1.The Director of Income-tax (Exemptions), 124, M.G. Road, Chennai – 600 034. 2.The Deputy Director of Income-tax (Exemptions), 124, M.G. Road, Chennai – 600 034.... Respondents Prayer: Writ Petition filed under Article 226 of theConstitution of India, for the issuance of Writ of Mandamus, todirect the 1[st] Respondent to consider the Application filed inForm No.10A on 30.03.2010 for registration of charitabletrust/institution u/s.12A of the Act. For Petitioner : Mr.R.Venkata Narayanan for M/s.S.Subbaraya Aiyar PadmanabhanFor Respondents : Mr.D.Prabhu Mukunth Kumar Junior Standing Counsel (I.T.)ORDER The petitioner has sought a mandamus directing the 1[st]respondent, the Director of Income Tax (Exemptions) to considerthe application filed by it in Form No.10A on 30.03.2010 forRegistration under Section 12A of the Income Tax Act, 1961('Act').2.No counter has been filed, but, Mr.D.Prabhu Mukunth Kumar,learned counsel appearing for the respondents, confirms thattill date no order has been passed on the aforesaid application.3.The provisions of Section 12AA of the Act, reads thus:'[Procedure for registration.12AA. (1) .......(2) Every order granting or refusingregistration under clause (b) of sub-section (1)shall be passed before the expiry of six months https://hcservices.ecourts.gov.in/hcservices/ from the end of the month in which theapplication was received under clause (a) [orclause (aa) [or clause (ab)] of sub-section (1)]of section 12A.]' 4.The Supreme Court, in the case of Commissioner of IncomeTax and another Vs. Society for the Promotion of Education (382ITR 0006), confirms the order of a Division Bench of theAllahabad High Court, to the effect that the Registration of anapplication under Section 12AA of the Act shall take effect sixmonths from the date of the said application. In the presentcase, the application has been filed on 30.03.2010. Thus, theregistration sought for shall be effective on and after30.09.2010. The relevant part of the judgment of the AllahabadHigh Court and the confirmation of the same by the Supreme Courtare extracted below. 5.The decision of the Allahabad High Court reported in thecase of Society for the promotion of Education Adventure Sport &Conservation of Environment vs. Commissioner of Income Tax andOthers (372 ITR 0222) is as follows: '17.Considering the pros and cons of the twoviews, we are of the opinion that by far the betterinterpretation would be to hold that the effect ofnon-consideration of the application for registrationwithin the time fixed by section 12AA(2) would be adeemed grant of registration. We do not find any goodreason to make the assessee suffer merely because theIT Department is not able to keep its officers undercheck and control, so as to take timely decisions insuch simple matters such as consideration ofapplications for registration even within the largesix month period provided by s. 12AA(2) of the Act. 18.We accordingly direct the respondents, subjectto any order which may be passed under s. 12AA(3), totreat the petitioner society as an institution dulyapproved and registered under s. 12AA and to recomputeits income by applying the provision of s. 11 of theAct. Accordingly, a formal certificate of approvalwill be issued forthwith to the petitioner by therespondent No.2.' 6.The judgment of the Supreme Court in the case of Societyfor the Promotion of Education (supra) is to the followingeffect: 18.We accordingly direct the respondents, subjectto any order which may be passed under s. 12AA(3), totreat the petitioner society as an institution dulyapproved and registered under s. 12AA and to recomputeits income by applying the provision of s. 11 of theAct. Accordingly, a formal certificate of approvalwill be issued forthwith to the petitioner by therespondent No.2.' 6.The judgment of the Supreme Court in the case of Societyfor the Promotion of Education (supra) is to the followingeffect: '3.The short issue is with regard to the deemedregistration of an application under Section 12AA ofthe Income Tax Act. The High Court has taken the viewthat once an application is made under the said provision and in case the same is not responded towithin six months, it would be taken that theapplication is registered under the provision. 4.The learned Additional Solicitor Generalappearing for the appellants, has raised anapprehension that in the case of the respondent, sincethe date of application was of 24.02.2003, at theworst, the same would operate only after six monthsfrom the date of the application. 5.We see no basis for such an apprehension sincethat is the only logical sense in which the Judgmentcould be understood. Therefore, in order to disabuseany apprehension, we make it clear that theregistration of the application under Section 12AA ofthe Income Tax Act in the case of the respondent shalltake effect from 24.08.2003.' 7. In the light of the above, the mandamus, as sought for bythe petitioner is issued and the respondent directed to pass anorder in the light of the Judgement of the Supreme Court asabove within two weeks from date of receipt of a copy of thisorder. This writ petition is allowed. No costs. 1.The Director of Income-tax (Exemptions), 124, M.G. Road, Chennai – 600 034. 2.The Deputy Director of Income-tax (Exemptions), 124, M.G. Road, Chennai – 600 034. +1cc to Mr.S.Subbaraya Aiyar, Advocate, SR.No.87542.+1cc to Mr.Hema Muralikrishnan, Advocate, SR.No.87252. W.P.No.32040 of 2013