Oxford Academy For Career Development v. Chief CIT & Ors.

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The Tax Publishers2009 TaxPub(DT) 1133 (All-HC) : (2009) 030 (I) ITCL 0415 : (2009) 315 ITR 0382 : (2009) 226 CTR 0606 : (2009) 029 DTR 0160 Oxford Academy For Career Development v. Chief CIT & Ors. INCOME TAX ACT, 1961 --Charitable trust--Cancellation of registrationPower to do so--The petitioner was a society registered under the Societies Registration Act. 1860. The petitioner, had applied for registration under section 12A of the Act being a charitable institution. The revenue authorities had granted registration on 1-4-1999. A survey was conducted at the business premises of the assessee wherein documents were impounded. During the course of survey, the statement of the president of the society, was also recorded. On the basis of the information, it was felt by the revenue that the society was being run for the purposes of profit and that the president and its family members were also obtaining benefits from it. Therefore, after serving a notice the earlier registration granted under section 12A of the Act was cancelled. The present writ petition had been preferred against the impugned by order dated 9-3-2004. The assessment years in this writ petition involved are 2000-01 and 2001-02. Held: It may be mentioned that section 12AA(3) was incorporated with effect from 1-10-2004, to empower the Commissioner to cancel the registration granted to a trust or institution. The same is not applicable retrospectively and in the assessee's case for the assessment years under consideration. The object of this provision is not clarificatory or explanatory, so prior to that date, the authorities granting registration had no inherent power to withdraw or revoke the registration already granted. The order cancelling the registration granted to a trust or institution under section 12AA of the Act being a quasi-judicial order does not fall within the category of orders mentioned under section 21 of the General Clauses Act, 1897, which provides that the power conferred on an authority empowers to issue orders including the power to rescind such orders and the Commissioner would not have power to rescind the order passed by the Commissioner earlier granting the registration to a trust or institution. Even assuming, the Commissioner has power to rescind the order of registration on the ground that the registration had been obtained by practising fraud or forgery, there was nothing in the show-cause notice or in the impugned order dated 9-3-2004, alleging that the petitioner had obtained the registration by practising fraud or forgery. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2009 TaxPub(DT) 1133 (All-HC) : (2009) 030 (I) ITCL 0415 : (2009) 315 ITR 0382 : (2009) 226 CTR 0606 : (2009) 029 DTR 0160

Oxford Academy For Career Development v. Chief CIT & Ors.

INCOME TAX ACT, 1961

--Charitable trust--Cancellation of registrationPower to do so--The petitioner was a society registered under the Societies Registration Act. 1860. The petitioner, had applied for registration under section 12A of the Act being a charitable institution. The revenue authorities had granted registration on 1-4-1999. A survey was conducted at the business premises of the assessee wherein documents were impounded. During the course of survey, the statement of the president of the society, was also recorded. On the basis of the information, it was felt by the revenue that the society was being run for the purposes of profit and that the president and its family members were also obtaining benefits from it. Therefore, after serving a notice the earlier registration granted under section 12A of the Act was cancelled. The present writ petition had been preferred against the impugned by order dated 9-3-2004. The assessment years in this writ petition involved are 2000-01 and 2001-02. Held: It may be mentioned that section 12AA(3) was incorporated with effect from 1-10-2004, to empower the Commissioner to cancel the registration granted to a trust or institution. The same is not applicable retrospectively and in the assessee's case for the assessment years under consideration. The object of this provision is not clarificatory or explanatory, so prior to that date, the authorities granting registration had no inherent power to withdraw or revoke the registration already granted. The order cancelling the registration granted to a trust or institution under section 12AA of the Act being a quasi-judicial order does not fall within the category of orders mentioned under section 21 of the General Clauses Act, 1897, which provides that the power conferred on an authority empowers to issue orders including the power to rescind such orders and the Commissioner would not have power to rescind the order passed by the Commissioner earlier granting the registration to a trust or institution. Even assuming, the Commissioner has power to rescind the order of registration on the ground that the registration had been obtained by practising fraud or forgery, there was nothing in the show-cause notice or in the impugned order dated 9-3-2004, alleging that the petitioner had obtained the registration by practising fraud or forgery.