High Court dismisses Revenue's appeal challenging ITAT order; Commissioner lacked jurisdiction to cancel trust registration under Income Tax Act

The High Court dismissed the appeal filed by the Revenue challenging the order of the Income Tax Appellate Tribunal. The Court held that the Commissioner of Income Tax lacked jurisdiction to cancel the registration certification granted to the trust under Section 12A of the Income Tax Act. It was determined that the Commissioner did not have the express power to cancel the registration once granted, as the relevant amendment was prospective and not retrospective. Therefore, the appeals were dismissed as no illegality or perversity was found in the Tribunal's findings.

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Issues:
Jurisdiction of Commissioner of Income Tax to cancel registration certification granted to a trust under Section 12-A of the Income Tax Act.

Analysis:
1. The appeal was filed by the Revenue challenging the order passed by the Income Tax Appellate Tribunal quashing the order of the Commissioner of Income Tax withdrawing the registration certificate granted to the trust under Section 12A of the Act.
2. The substantial question of law for determination was whether the Tribunal was justified in holding that the Commissioner of Income Tax lacked jurisdiction to cancel the registration certification.
3. The trust was granted registration under Section 12A of the Act and exemption under Section 80G. Subsequently, the registration and exemption were withdrawn by the Commissioner on the grounds that the trust was not charitable as per the Act.
4. The appellant argued that the Tribunal erred in entertaining the objection regarding the Commissioner's power to cancel the registration, and that adequate hearing was provided before the cancellation.
5. The senior counsel for the assessee contended that the documents supporting the cancellation were not shared with the assessee, and the Commissioner had no express power to cancel the registration once granted.
6. The High Court dismissed the appeal, citing a Supreme Court decision that until October 1, 2004, the Commissioner had no express power to cancel the registration granted under Section 12A.
7. The Court held that the amendment conferring such power was prospective and not retrospective, thus the Commissioner lacked jurisdiction to cancel the registration granted to the trust.
8. As no illegality or perversity was found in the Tribunal's findings, the substantial question of law was answered against the Revenue, and the appeals were dismissed.

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