CIT Vs Dr. Kasliwal Medical Care & Research Foundation (Bombay High Court)
Conclusion: Non-disposal of application for registration u/s 12AA(2) within a period of six months would not result in deemed grant of registration as Parliament had carefully and advisedly not provided for such deeming fiction.
Held: Assessee was a public trust running a pediatric hospital, filed an application in Form No. 10A requesting registration of the assessee u/s 12A. The registration was however, refused by the CIT. When the matter reached the Tribunal, it was held that as the CIT did not pass an order granting or refusing registration of assessee u/s 12A(1) within a period of six months as prescribed u/s 12AA(2), assessee was deemed to have been granted a registration. Revenue appealed against the High Court. It was held that following the decision in case of the Supreme Court in Harshit Foundation Sehmalpur, the clear position in law was to the effect that Section 12AA(2) of the IT Act did not recognize any deeming fiction, that an application for registration was deemed to be granted, if it was not disposed of within six months, as succinctly held by the Full Bench of the Allahabad High Court in Muzafar Nagar Development Authority when it observed that the Parliament had carefully and advisedly not provided for such deeming fiction and as approved by the Supreme Court in Harshit Foundation Sehmalpur.
