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TMI Blog2013 (3) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... s mandatory or directory has to be ascertained not only from the wording of the statute but also from nature and design of the Statute and the purpose which it seeks to achieve. Herein the time frame under Sub-section (2) of Section 12AA of the Act has been so provided to exclude any delay or lethargic approach in the matter of dealing with such application. Since the consequence for non-compliance with the said time frame has not been spelt out in the statute, this Court cannot hold that the said time limit is mandatory in nature nor the period of six months has been couched in negative words. 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 direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nth in which such application was filed by the applicant Trust? 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in adjudicating on the issue that has not been raised by the applicant Trust either in the grounds of appeal filed by the Trust in Form 36 or at the time of hearing by filing additional grounds? 2. Respondent Trust was created on 04.08.2003. It had made an application for registration under Section 12AA of Income Tax Act on 31.8.2005. As per Section 12AA of the Act, application for registration of the Trust or Institution in the prescribed form and in the prescribed manner shall be made to the Commissioner before 1.7.1973 or before the expiry of a period of one year fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the delay in filing the application. 5. In the appeal preferred by the Respondent, Tribunal held that in the matter of condonation of delay, a pragmatic approach should be adopted and substantial cause or justice should not be deviated merely on pedantic reasons. Tribunal further held that the original application dated 31.8.2005 was to be treated as accepted and registration under Section 12AA was to be assumed to have been granted to the Trust. Tribunal also held that as per Section 12AA(2) of the Act, when the application for registration is filed, the order granting or refusing registration shall be passed before the expiry of six months from the end of the month in which the application was received. Observing that CIT kept the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of six months from the end of the month in which the application was received under clause (a) [or clause (aa) of sub-section (1)] of Section 12A. As per the above provision, the Authority is expected to pass an order in the application for registration either by granting or by refusing before the expiry of six month from the end of the month in which application was received. 9. In 2006 (II) OLR 75 [Srikhetra, A.C. Bhakti-Vedanta Swami Charitable Trust v. The Assistant Commissioner of Income Tax and another], the Orissa High Court took the view that period of six months as provided under sub-section (2) of Section 12AA of Income Tax Act is not mandatory and held as follows:- 5. We are unable to uphold such contention. In our view th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act is only directory. Tribunal was not right in holding that not passing order in the application within the stipulated period of six months would automatically result in granting assumed registration to the Trust. 11. While considering the case of lodging assessee's application for registration of Trust, in (2011) 237 CTR (Mad) 509 [Director of Income Tax (Exemption) v. Anjuman-E-Khyrkhah-E-Aam], this Court held that Section 12AA (1)(b)(i) and (ii) of Income Tax Act makes it clear that there is a statutory mandate imposed on the Department to pass an order in writing either registering the Trust/Institution or refusing to register the Trust/Institution. This Court further held that the conclusion of the Tribunal in holding th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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