Thursday, 1 November 2018

HC : Explains SC judgment effect on Allahabad HC Full bench decision on deemed trust registration

Kerala HC confirms ITAT order, holds that failure to consider assessee trust's application for registration within stipulated period of 6 months would result in deemed grant of registration, but such registration is effective from date of expiry of 6 months from application date; HC finds Revenue’s request to interpret relevant provisions as done by Full Bench of Allahabad HC in Muzafar Nagar Development Authority (wherein it was held that non-disposal of application cannot result into deemed registration) as persuasive; However observes that it was obliged to follow SC decision upholding Allahabad HC decision in Society for the promotion of Education, Adventure Sport & Conservation of Environment, holds that “The opinion as expressed by the Allahabad High Court, regarding deemed registration .. having not been differed from by the Hon'ble Supreme Court in the Civil Appeal; the declaration by the High Court assumes the authority of a precedent by the Hon'ble Supreme Court on the principles of doctrine of merger”; Reject Revenue’s contention that SC decision is not declaration of law as it was based on concession from Department Counsel, notes that only apprehension raised by Department before SC was about effective date of deemed registration; Also takes note of CBDT Instruction No. 16/2015 which stated that requirement to pass order granting or rejecting registration within 6 months is a mandatory requirement.:HC 

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