Section 12A / 12AA / 12AB – whether assessee is entitled to “deemed registration” if application not disposed off in 6 months.

[Sections 11, 12, 12A, 12AA, 12AB of Income Tax Act, 1961]

Held:

– Assessee’s application for registration under s 12A(1)(ac)(i) made in Form 10AC was allowed by the Revenue and the said registration was valid and subsisting. [Note: Application under said clause is to be made for already registered trusts. Trust had applied for registration on 14 January 2008, and did not have registration certificate nor any order rejecting the application. Hence assessee relied on deemed registration.]

– In the circumstances, assessee which was already registered as per above, and which had nonetheless made a fresh application, is to be permitted to withdraw fresh application. Order rejecting the said application would be inconsequential. Assessee would be entitled to rely on the already existing registration.

– Decision of the Hon’ble Supreme Court in the case of Society for Promotion of Education (2016) holding that assessee is entitled to “deemed registration” if application for registration is not decided in 6 months, was considered.

– The subsequent order of the Hon’ble Supreme Court in Harshit Foundation vs. CIT (2022) affirming view of the Full Bench of Allahabad High Court that there is no “deemed registration” under section 12A of the Income Tax Act, 1961 was also considered. It was held that the decision in Harshit Foundation is an order dismissing assessee’s SLP. Said decision would not attract doctrine of merger.

– Adverting to the aforesaid principles of law, the decision of the
Supreme Court in Society for Promotion of Education (which was a decision given on appeal) is the law as declared by the Supreme Court under Article 141 of the Constitution of India.