Appeal admitted on PCIT jurisdiction to cancel Section 12AB registration after Section 127 transfer, ITAT findings questioned

HC admitted the revenue's appeal against the ITAT order which had quashed the cancellation of registration under Section 12AB of the Income Tax Act. The core issue concerns jurisdiction of PCIT (Central), Gurugram to cancel the assessee-trust's registration after transfer of jurisdiction under Section 127. HC framed substantial questions of law on: (i) correctness of ITAT's finding that PCIT (Central) lacked jurisdiction; (ii) ITAT's reliance on only one CBDT notification while ignoring another allegedly conferring such jurisdiction; and (iii) whether transferred jurisdiction under Section 127 extends to registration proceedings under Section 12AB.

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Appeal under the Income Tax Act, 1961 is admitted on substantial questions of law concerning jurisdiction to cancel a trust's registration under Section 12AB. The core issue is whether the Principal Commissioner of Income Tax (PCIT) (Central), Gurugram had lawful jurisdiction to pass an order under Section 12AB(4) cancelling the assessee trust's registration, after the jurisdiction of the assessee's case was transferred under Section 127. The questions framed include: (i) whether the ITAT was correct in quashing the Section 12AB cancellation order on the ground that the PCIT (Central), Gurugram lacked jurisdiction; (ii) whether ITAT erred by relying only on CBDT Notification No. 52/2014, S.O. 2754(E) dated 22.10.2014 and not considering CBDT Notification No. 70/2014, S.O. 2915(E) dated 13.12.2014; and (iii) "whether PCIT would have the powers to pass an order u/s 12AB, after the jurisdiction of the case of assessee has been transferred under Section 127, which would also include all proceedings including registration?"

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