Appeal allowed: Registration restored under section 12A.

The Tribunal allowed the appeal, holding that the cancellation of registration under section 12A was not valid. The registration granted to the assessee was restored.

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Issues Involved:
The judgment involves the cancellation of registration under section 12A of the Income-tax Act, 1961.

Issue 1: Registration Cancellation

The assessee's appeal was against the cancellation of registration under section 12A. The Commissioner withdrew the registration granted in 1974, citing that the trust's activities were not genuine. The assessee argued that under the amended provision of section 12AA, no authority can withdraw registration once granted. The Departmental Representative contended that the power to withdraw registration is impliedly available to the authority. The Tribunal analyzed the legal provisions and held that registration granted under section 12A cannot be withdrawn under section 12AA(3). The Tribunal emphasized that the law does not allow for the cancellation of registration granted under section 12A, and the provisions of section 12AA(3) cannot be applied retrospectively. The Tribunal referred to various decisions supporting this view and concluded that the impugned order was vitiated in law. Consequently, the registration granted under section 12A was restored.

Conclusion:
The Tribunal allowed the appeal, holding that the cancellation of registration under section 12A was not valid. The registration granted to the assessee was restored.

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