The assessee trust's registration u/s 12AA was cancelled...

The assessee trust's registration u/s 12AA was cancelled retrospectively by the CIT(E) u/s 12AB(4)(b)(i) on grounds of commercial activities, diversion of funds to related parties, and violation of Section 13(3). The key points are: The ITAT held the retrospective cancellation was incorrect as the specified violations u/s 12AB(4) were introduced prospectively from 01.04.2022 and cannot apply to earlier years. The revenue cannot re-agitate issues like commercial activities which were already decided in the assessee's favor. Cancellation cannot operate retrospectively in absence of specific provision. The CIT(E) initiated proceedings based on a reference from the AO, but no fresh reference was made after registration was granted on 23.09.2021 as mandated by amended Section 12AB(4). The show cause notice did not cover the specified violations invoked in the final order, violating principles of natural justice. Cancellation of registration solely on grounds of specified violations for prior years is incorrect.