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TMI Blog2013 (4) TMI 490X X X X Extracts X X X X X X X X Extracts X X X X ..... njuman-E-Khyrkhah-E-Aam)(2010 (12) TMI 957 - Madras High Court )- We held that there is no automatic or deemed registration if the application filed U/s 12AA was not disposed of within the stipulated period of six months - We further held therein that the time frame fixed under the said provision is only directory. On merits - The Commissioner of Income Tax held that there is no element of charity involved in the process of money lending by the Assessee Company and the activity of Assessee Company is not of charitable nature. The order of the Tribunal is set aside and the matter is remitted back to Commissioner of Income Tax, Salem for consideration of the matter afresh - The appeal is allowed. The Commissioner of Income Tax, Salem shall co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... access to credit facilities through micro-finance, linking with financial institutions, Micro Enterprises Development and other Micro Credit systems. Assessee Company had filed application in Form 10A for registration under Section 12AA of Income Tax Act on 17.3.2006. Since amendment of Memorandum of Association could not be submitted within the time allowed and as the matter was getting barred by limitation for registration under Section 12AA of the Act, by the order dated 01.11.2006 the application was treated as "lodged" and intimation to that effect was sent to the Assessee Company. Assessee Company filed an appeal in I.T.A.No.2448 of 2006 against the order dated 01.11.2006 and the said appeal was pending before the Tribunal. 3. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its and held that in the absence of any activity which is of charitable nature, there is no justification in granting registration to Assessee Company under Section 12AA of the Act as charitable institution. 4. As against the said order (28.11.2007), Assessee Company filed appeal in I.T.A.No.19 of 2008. Tribunal took up and heard both the appeals [I.T.A.Nos.2448 of 2006 and 19 of 2008]. Case of Assessee Company before the Tribunal was that application under Section 12AA of the Act for registration was filed on 17.3.2006 and the time limit for granting registration would expire on 30.09.2006 and by the order dated 01.11.2006, the Commissioner of Income Tax refused to grant Assessee's registration under Section 12AA of Income Tax Act and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Certificate of Commencement of Business was dated 12.12.2000 and thus application for registration was filed after the delay of six years and the Commissioner of Income Tax rejected the plea for condonation of delay by the order dated 28.11.2007 by holding that no sufficient cause had been established for justifying the delay in filing the application. Learned counsel for Revenue further submitted that registration was also not allowed, since the activity of micro-finance was considered a commercial activity and not an activity of charitable nature within the meaning of Section 2(15) of the Act. 7. We have heard Mr.N.Vijayaraghavan, learned counsel appearing for the Assessee Company. 8. Section 12AA(2) of Income Tax Act reads as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter 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. Most of the time negative words indicate a mandatory intent. This Court is also of the opinion that 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 Privy Council 142 at page 144. Here there is no such express statutory intent, nor does it follow f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l directing the Commissioner of Income Tax to grant Assessee's registration under Section 12AA of the Act from the date of inception as claimed in its application dated 17.3.2006 cannot be sustained and the matter is to be remitted back to the Commissioner of Income Tax, Salem for consideration of the matter afresh. 13. The very same issue was considered by this Bench in T.C.(A) No.315 of 2010 dated 27.2.2013 in the matter of Commissioner of Income Tax I, Salem v. Sheela Christian Charitable Trust, wherein by following the decision of this Court reported in (2011) 237 CTR (Mad) 509 (Director of Income Tax (Exemption) v. Anjuman-E-Khyrkhah-E-Aam), we held that there is no automatic or deemed registration if the application filed under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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