Court Examines Tax Order, Retrospective Application of Section 12AB(4), and Interim Reliefs in Domestic Donation Case.

The HC addressed the maintainability of writ petitions against an order by the Principal Commissioner of Income Tax, granting interim reliefs similar to a prior related case, restricting donations to domestic sources. It also examined the retrospective application of Section 12AB(4) of the Income Tax Act, granting interim reliefs while directing respondents to reply within a week. The matters were set for further hearing alongside related cases.

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Issues:
1. Maintainability of the writ petitions challenging the impugned order passed by the Principal Commissioner of Income Tax.
2. Retrospective application of Section 12AB(4) of the Income Tax Act, 1961.

Analysis:
1. The High Court addressed the issue of the maintainability of the writ petitions challenging the impugned order passed by the Principal Commissioner of Income Tax. The respondents contended that the impugned order was appealable under Section 253(c) of the Income Tax Act and should be tried by the Income Tax Appellate Tribunal. However, the Court noted a substantial jurisdictional question and emphasized the need for a uniform approach in interim orders. The Court decided that the petitioners were entitled to interim reliefs similar to those provided in a previous order passed in a related case, with a clarification that donations accepted should be limited to domestic contributions only.

2. The Court also examined the issue of the retrospective application of Section 12AB(4) of the Income Tax Act. The respondents argued that the provision allowed for the cancellation of registration, impacting previous years. The Court acknowledged the insertion of clause (c) in Section 12AB(4) by the Finance Act, 2022. Considering the jurisdictional question raised and the need for consistency in interim orders, the Court decided to grant interim reliefs to the petitioners in line with the previous order, specifying restrictions on accepted donations. The Court directed the respondents to file a reply within a week and allowed the petitioner to file a rejoinder affidavit subsequently. The matters were scheduled for further hearing on a specified date, along with related cases, for final decision.

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