2015 (10) TMI 2711 - HC - Income Tax

Grant of registration under Section 12AA - Held that - Application dated 1.4.2003 moved by petitioners for grant of registration under Section 12AA of Income Tax Act, 1961 shall be decided by competent authorities within period of three moths from today. The issue pertaining to conduct of assessee in treating itself as deemed registered is kept open and can be considered thereafter. Said conduct or its impact on other appeals can also be examined after such adjudication. Parties are given the liberty accordingly to raise all relevant challenges after such adjudication.

Summary

Issues Involved:
1. Interpretation of "deemed registration" by the assessee.
2. Eligibility of the assessee for registration from 01.04.1999 till 31.03.2009.
3. Comparison with other Cricket Associations' registration under Section 12AA.
4. Decision on the application dated 1.4.2003 for registration under Section 12AA.
5. Conduct of the assessee in treating itself as deemed registered.
6. Impact of the conduct on other appeals.

Analysis:

1. Interpretation of "deemed registration" by the assessee:
The counsel for the petitioner, in light of a previous order, expressed readiness to adjudicate upon the application moved by the assessee on 1.4.2003 while keeping the correctness of the "deemed registration" open for consideration. The court noted the contentions of both counsels regarding the eligibility of the assessee for registration during a specific period and decided to keep the issue open for further consideration.

2. Eligibility of the assessee for registration from 01.04.1999 till 31.03.2009:
The court deliberated on the eligibility of the assessee for registration during the mentioned period, with conflicting views presented by the counsels. The court highlighted the importance of examining how the department should look into the affairs of the assessee for the said period if the concept of "deemed registration" is not accepted. Reference was made to the registration granted to other Cricket Associations under Section 12AA for comparison.

3. Comparison with other Cricket Associations' registration under Section 12AA:
The counsels discussed the registration status of various Cricket Associations under Section 12AA, emphasizing the need for consistency in granting such registrations. Differences in treatment were pointed out, such as the Mumbai Cricket Association not being granted registration. The court acknowledged these arguments but refrained from providing a final verdict at that stage.

4. Decision on the application dated 1.4.2003 for registration under Section 12AA:
After considering the submissions and the subsequent actions taken by the assessee, the court ordered that the application dated 1.4.2003 for registration under Section 12AA should be decided by the competent authorities within three months from the date of the order.

5. Conduct of the assessee in treating itself as deemed registered:
The court allowed the issue of the assessee treating itself as deemed registered to remain open for consideration after the decision on the application dated 1.4.2003. The impact of this conduct on other appeals was also highlighted, with parties granted the liberty to raise relevant challenges accordingly.

6. Impact of the conduct on other appeals:
The judgment concluded by disposing of the appeal, with the issue of the conduct of the assessee in treating itself as deemed registered left open for future consideration. The parties were given the freedom to address any related challenges following the adjudication of the application dated 1.4.2003.