- U/s 12AA(2), CIT has been required to grant registration with in a period of six months.
- It has been held by Full Bench decision of Allahabad High Court in Muzaffarnagar Development Authority on 05-02-2015 reversing its own order in Society for the Promotion of Education, Adventure Sport & Conservation of Environment that Non disposal of an application for registration, by granting or refusing registration, before the expiry of six months as provided under Section 12AA (2) of the Income Tax Act 1961 would not result in a deemed grant of registration
- Similar Judgements delivered by Madras High Court in Karimangalam Onriya Pengal Semipu Amaipu Ltd. T.C.(A) No. 1183 of 2010 20.03.2013; Anjuman-E-Khyrkhah-E-Aam [2011] 11 taxmann.com 354; Salem v. Sheela Christian Charitable Trust, T.C.(A) No.315 of 2010 dated 27.2.2013;Orrisa High Court in Srikhetra, A.C. Bhakti-Vedanta Swami Charitable Trust v. Asstt. CIT 2006 (II) OLR
- When public duty is to be performed by the public authorities, the time-limit which is granted by the Statue is normally not mandatory but is directory in the absence of any clear statutory intent to the contrary. See Montreal Street Railway Company v. Normandin AIR 1917 PC 142
- Also held by ITAT Delhi in the case of Process cum product development centre ITA 5013/ITA /2010 on 17-01-2011that mere because order though passed in six moths is received a few days after 6 months shall not result in deemed registration with in six months
6. Now, CBDT vide Instruction No. 16/2015 dated
06-11-2015 has instructed the CIT(Exemption) to follow the time limit of six
months strictly failing which suitable administrative action shall be taken
