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TMI Blog2010 (6) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... ng an order, withdrawing the registration on the grounds taken by him in order under section 12AA(3) - There is no apparent error on the records - hence the appeal is dismissed X X X X Extracts X X X X X X X X Extracts X X X X ..... al in the case of B.T. Patil & Sons Belgaum Construction (P.) Ltd. v. Asstt. CIT [2009] 126 TTJ (Mum.)(TM) 577. 3. The assessee has filed, statement of facts before us, which has not been disputed by either party. Therefore, it will be appropriate if a summary of the facts is narrated here: 3.1 In the year 1996, the assessee-society filed an application in Form 10A with the CIT, Meerut (then having jurisdiction in its case), seeking registration under section 12A along with application for condonation of delay of 9 years and 5 months. After consideration of its objects, registration under section 12A was granted by the CIT, Meerut with effect from 1-4-1996. 3.2 With the formation of separate Commissionerate at Ghaziabad, the jurisdiction in the case of the assessee got shifted to the jurisdiction of Commissioner of Income-tax, Ghaziabad. The succeeding Commissioner of Income-tax, Ghaziabad took a view that the assessee-society is not eligible for registration and in terms of the order dated 16-1-2004 passed by him, the earlier registration certificate dated 1-7-1997 has been withdrawn. 3.3 Belatedly, the assessee filed an appeal against the order dated 16-1-2004 before the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een allowed? The Hon'ble Court applied the principle of purposive interpretation and held that the balance of convenience is in favour of holding that the application is deemed to have been allowed in absence of any order passed by the Commissioner within the statutory time limit. For the sake of ready reference, relevant paragraphs of the decision are reproduced below :-- "17. Considering the pros and cons of the two views, we are of the opinion that by far the better interpretation would be to hold that the effect of non-consideration of the application for registration within the time fixed by section 12AA(2) would be a deemed grant of registration. We do not find any good reason to make the assessee suffer merely because the Income-tax Department is not able to keep its officers under check and control, so as to take timely decisions in such simple matters such as consideration of applications for registration even within the large six month period provided by section 12AA(2) of the Act. 18. We accordingly direct the respondents, subject to any order which may be passed under section 12AA(3), to treat the petitioner society as an institution duly approved and registered under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e set quashed. 29. Accordingly, the impugned order dated March 9,2004, passed by opposite party No. 2 withdrawing/rescinding the order granting registration on April 1, 1999, to the petitioner's society under section 12A of the Act, is quashed. Consequently, the registration granted to the petitioner's society on April 1, 1999, stands restored for the assessment years under consideration." 4.3 Coming to the case of B.T. Patil & Sons Belgaum Construction (P.) Ltd., (supra) relied upon by the revenue, one of the questions before the Larger Bench of the Tribunal was whether, the position of law has to be seen on the date of order or judgment delivered by a quasi-judicial authority or the court, as the case may be, or at the time when the case was heard? It has been decided that the position of law as obtained on the date of passing the order has to be seen. It is also explained that the affected party is required to be given an opportunity of being heard regarding any change in law which comes into force between the date of hearing and the date of passing the order. In this case, the changed position of law, embedded in section 12AA(3) has been communicated to the assessee in the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posal at the time of his passing order. We find that even the assistance taken of this section by the learned Authorised Representative to bolster his submission that Explanation should not have been considered by the learned AM, is misplaced. The crucial words used in this section are "until such provision is so made". So no reference can be made to this section when the provision stands enacted. It is only during interregnum that the more beneficial provision to the assessee is made applicable as per the mandate of this section. If, however, a proposal in the Finance Bill has been enacted that will become binding. It is only till such time that the Finance Bill is converted into Act that this section can be said to have any significance, even going as per the argument of the learned Authorised Representative. Once a proposal in the Finance Bill is converted into provision in the Act, such provision becomes applicable. Lot of emphasis has been laid by the learned Authorised Representative on the proposition that when the learned AM passed his order, the said Explanation to section 80-IA was merely a proposal in the Finance Bill and not enacted. It is observed that the Finance Bill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Allahabad High Court, after considering pros and cons of the situation, decided that the application should be deemed to have been allowed. The decision is peculiar to the facts of these case where the Hon'ble Court found that no harm will be done to the revenue. However, such a deemed allowance in this case would have the effect that the assessee would get exemption under section 11 in respect of application of its income for the benefit of its members, which cannot be said to be a charitable purpose. 5.2 The facts of the case of Welham Boys' School Society (supra) are also different as it was never pointed out to the Hon'ble Uttranchal High Court as to whether there has been any change in the position of law at the time of passing order by it. The Court dealt with the argument about alleged inherent power vested in the Commissioner of Income-tax, which was negated. Such is also the decision in the case of Oxford Academy for Career Development (supra). Before us, the amended provisions of section 12AA, contained in sub-section (3), have been brought to our notice. It is no doubt true that on the date when the Commissioner of Income-tax passed the order, this section did not exist ..... X X X X Extracts X X X X X X X X Extracts X X X X
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