Concept of deemed registration of trust not prevailing under Income Tax Act

Domadia Raiyaben Muljibhai Charitable Trust Vs CIT(Exemption) (ITAT Surat)

ITAT Surat held that there is no specific provision in the Income Tax Act that non-deciding the registration application under Section 12AA within a period of six months there shall be a deemed registration.

Facts- The assessee is claiming itself to be registered as a public charitable trust. The Trust was set up on 13/01/2010. The applicant Trust filed an application for registration under Section 12AA of the Income Tax Act, 1961 (in short, the Act) on 13/12/2018. The assessee trust was granted registration under Section 12AA vide order dated 19/06/2019 w.e.f. 13/12/2018 i.e. from the date of application. Still aggrieved by the action of ld. CIT(E) in granting registration from the date of application, the assessee trust has filed the present appeal before this Tribunal.

Conclusion- The case law relied by ld. CIT-DR for the revenue in Harshit Foundation Vs CIT 447 ITR 372 (SC) wherein the Hon’ble Supreme Court has held that there is no specific provision in the Income Tax Act that non-deciding the registration application under Section 12AA within a period of six months there shall be a deemed registration. Thus, the ratio of this decision is directly applicable on the facts of the present case.

FULL TEXT OF THE ORDER OF ITAT SURAT

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