2011 (9) TMI 668 - HC - Income Tax

Registration under 12A and exemption under 80G - Application pending no decision taken - Held That - Statutory obligation of the respondents to consider the applications, moved under the Act, in accordance with law and pass an appropriate orders thereon.

Summary

Issues:
1. Delay in considering application for registration and exemption certificate under the Income Tax Act.

Analysis:
The petitioner, a registered Trust, filed an application in July 1994 seeking registration under section 12A and exemption under section 80G of the Income Tax Act. The petitioner alleged that despite the application pending since July 1994, no decision had been made by the respondents. The petitioner sought a writ of mandamus to compel the respondents to consider the application and issue the certificates as per the law.

In response, the respondents claimed that the application had been rejected in November 1994. However, the petitioner's counsel disputed this assertion, highlighting discrepancies in the respondent's affidavit. The court noted that no final decision had been taken by the competent authority, and the proceedings were deferred, indicating that the rejection claim was premature and incorrect.

The court emphasized that there was no legal impediment preventing the respondents from deciding on the application promptly. It was deemed a statutory obligation for the respondents to process applications under the Act in a timely manner and issue appropriate orders. Consequently, the court allowed the writ petition, issuing a mandamus directing the respondents to consider and decide on the petitioner's application within two months of receiving the court's order.

In conclusion, the court's decision underscored the importance of timely processing of applications under the Income Tax Act, emphasizing the statutory duty of authorities to act promptly and in accordance with the law. The judgment aimed to ensure that legitimate requests for registration and exemption certificates were not unduly delayed or ignored, reaffirming the principles of administrative law and procedural fairness in such matters.