Kadakkal Educational Trust.v. CIT (2013) 213 Taxman 7(Kerala) (High Court)

S.12A:Registration-Trust or institution-Restorationof application-An application submitted for registration

under section 12A once rejected, it cannot be restored.

The assessee, an educational institution, submitted application for registration under section 12A.The Commissioner issued communication requiring the assessee to rectify the defects mentioned therein. For non-compliance of the rejected the application Thereafter the assessee submittedan application stating that the defects were rectified and requested for reconsideration of its application. The Commissioner issued communication requiring the assessee to cure the defects mentioned therein and also asked it to attend his office. Further, the Commissioner having noticed that the assessee had also filed an application for the benefit under section 10(23C) (vi) before the Chief Commissioner, presumed that the assessee was not pursuing the application and on that basis, closed the said application as withdrawn. In the meanwhile, the assessee applied for registration under section 12A for the year 2010-11, which was granted.The assessee also filed a writ petition before the High Court contending that application was pending before the Commissioner. The High Court disposed of the writ petition. It held that the stand taken by the assessee regarding pendency of the application for registration under section 12A was not true and correct. Therefore, the relief sought for could not be granted. It having noticed that registration under section 12A had already been granted to the assessee on the basis of a subsequent application with effect from the assessment year 2010-11 onwards permitted the assessee to seek appropriate remedy for

applying for registration under section 12A with respect to the periods prior to the assessment year 2010-11. Thereupon the assessee approached the Commissioner by submitting fresh application under section 12A. The Commissioner held that since application was not disposed of as provided under section 12(AA) (b) (ii), a fresh application was not maintainable. Thereafter the High Court by judgment modified its earlier judgment dated 28-1-2011 and permitted the assessee to seek appropriate remedy to restore application, if permissible under law. The assessee again approached the Commissioner. The Commissioner considered the matter afresh and passed order holding that application could not be restored in law. The court held that an application submitted for registration under section 12A once rejected, it cannot be restored. In favour of revenue.