S. 12AA Deemed registration effective after 6 month from application

Brief of the Case

Supreme Court held In the case of CIT vs. Society for the Promn. Of Edn that it is clear that the registration of the application under Section 12AA of the Income Tax Act in the case of the assessee shall take effect from 24.08.2003 i.e. post 6 months from the date of application for registration. This is the only logical sense in which the Judgment of high court could be understood.

Facts of the Case

The short issue is with regard to the deemed registration of an application under Section 12AA. The High Court has taken the view that once an application is made under the said provision and in case the same is not responded to within six months, it would be taken that the application is registered under the provision. However, revenue raised the apprehension that such registration should be valid post 6 months only.

Contention of the Revenue

The ld counsel of the revenue submitted that since the date of application was of 24.02.2003, at the worst, the same would operate only after six months from the date of the application i.e. registration will be effective from expiry of six months period.

Held by Supreme Court

Supreme Court held that it is clear that the registration of the application under Section 12AA of the Income Tax Act shall take effect from 24.08.2003 i.e. post 6 months from the date of application for registration.

Accordingly appeal disposed of.