INCOME TAX ACT, 1961

Section 12 Section 12AA

Charitable Trust - Cancellation of registration - No power to cancel registration at relevant time -

Issue arose for consideration before Court was whether Appellate Tribunal was justified in coming to hold that CIT has no jurisdiction to cancel the registration certification granted in favour of a trust in exercise of power under section 12-A. Held: On 15-10-2001, assessee was granted registration by CIT under section 12A and the exemption under section 80G on 18-3-2002. Order withdrawing the said registration with retrospective effect was passed by the CIT on 12-8-2003 i.e. much prior to coming into force of amendment enacting sub-section (3) in section 12AA conferring the powers on the CIT to withdraw/cancel/recall the registration granted by him to any firm/trust/society. CIT had no jurisdiction to cancel the registration certificate once granted by him under section 12A till the power was expressly conferred on the CIT by section 12AA(3) with effective from 1-10-2004. Supreme Court in Industrial Infrastructure Development Corporation [2018 (2) TMI 1220 - Supreme Court] had held that amendment in question was not retrospective but was prospective in nature, thus appeal of Revenue was dismissed.

Applied :Industrial Infrastructure Development Corporation [2018 (2) TMI 1220 - Supreme Court]

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2002-03

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