While upholding a full-bench decision of the Allahabad High Court, the Supreme Court, on Friday, held that there cannot be ‘deemed registration’ in case of non-deciding of an application filed under section 12AA (2) of the Income Tax Act, 1961.
The appellant, Harshit Foundation Sehmalpur Jalalpur Jaunpurchallenged the judgment of the High Court wherein the Court decided the issue, whether on non-deciding the application for registration under Section 12AA (2) of the Income Tax Act, 1961 within a period of six months, there shall be deemed registration or not.
While deciding the issue, the Full Bench of the Allahabad High Court relied on its decision in the case of Commissioner of Income Tax vs. Muzafar Nagar Development Authority and ruled against the assessee.
A two-judge bench of the Supreme Court comprising Justice M.R. Shah and Mrs. Justice B.V. Nagarathna observed that “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.We are in complete agreement with the view taken by the Full Bench of the High Court.”
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