Trust not registered with in six months time limit u/s 12AA(2)

1. U/s 12AA(2), CIT has been required to grant registration with in a period of six months.
2. 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
3. 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
4. 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
5. 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

Trust's registration not to be delayed due to delay of revenue in transferring application to concerned CIT

Gauhati Greater Sewa Nidhi Trust [2015] 58 taxmann.com 145 (Guwahati - Trib.)

The Proviso to s. 2(15) has no bearing on the grant or denial of registration. The applicability of the proviso has to be evaluated on a year to year basis and it only affects the grant of exemption u/s 11

Kapurthala Improvement Trust vs. CIT (ITAT Amritsar)

Where the issue of investment in shares has already been considered at the time of registration of trust and found to be not voilating 11(5), no subsequent revocation of registration on this ground can be made

Nimmagadda Foundation [2015] 57 taxmann.com 226 (Hyderabad - Trib.)SEPTEMBER  10, 2014 
In this case investment in shares was converted in forms specified in 11(5) in specified period.

Where main activities of Improvment trust were to purchase undeveloped land and to sell off same after development, activities of assessee were in nature of trade and Commissioner had rightly cancelled registration already granted under section 12AA to it

[2013] 30 taxmann.com 58 (Amritsar - Trib.) Improvement Trust DECEMBER 18, 2012

For registration of a newly registered trust under section 12AA, objects for which it was formed should be examined and not its activities, which is yet to be commenced

2013] 30 taxmann.com 168 (Chennai - Trib.) A.V.S. Educational Trust JANUARY 18, 2013

Registration to family controlled Trust allowed by Punjab and Haryana High Court

BKK Memorial Trust ITA 5/2012 Order dated 16-10-2012
Followed Punjab and Hryana High Court in ITA No.881 of 2010 The Commissioner of Income-tax, Bathinda Vs. M/s Baba Deep Singh Educational Society, SCF 23, Bharat Nagar, Bathinda

Registration u/s 12AA to be granted even if no activity carried out

Delhi High Court ITA 1687/2010  16-08-2012

FOUNDATION OF OPHTHALMIC & OPTOMETRY RESEARCH EDUCATION CENTRE
Case Represented by CA Ved Jain
Cases Relied by Assessee Counsel

Sanjeevamma Hanumanthe Gowda Charitable Trust vs. Director of IT (Exemption) (2006) 203 CTR (Kar)
533 : (2006) 285 ITR 327 (Kar)

IT Training company educating storage networking held charitable

The main objects of the   assessee, a non-profit company under Section 25 of the Companies Act are   as follows :
     1. To promote, educate and train professionals as well as IT and end
  users in Public and Private sectors working in the field of Information
  Technology, Advancement in the adoption of storage networking as complete
  and trusted solutions, to lead the storage industry in developing and
  promoting standards, technologies and educational services to empower
  organization in the management of information, not with motive of profit.