https://www.taxtmi.com/highlights?id=100280 Section 12AB(4) could not be used to cancel charitable registration retrospectively for years before its insertion on 1 April 2022, so cancellation from AY 2018-19 was unsustainable. The Tribunal also held that clause (e) of the Explanation to section 12AB(4) applies only where the activity itself is not genuine or is not carried on in accordance with registration conditions, and that clause (a) must be read purposively to cover diversion away from the institution's objects. Allegations of benefit to specified persons under section 13(3), without proof that the educational activity was sham or that charitable objects were abandoned, did not justify cancellation; such issues are to be addressed at assessment stage. The cancellation order was quashed and registration restored. en-us Sat, 30 May 2026 08:29:40 +0530 Sat, 30 May 2026 08:29:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=100280 Section 12AB(4) could not be used to cancel charitable registration retrospectively for years before its insertion on 1 April 2022, so cancellation from AY 2018-19 was unsustainable. The Tribunal also held that clause (e) of the Explanation to section 12AB(4) applies only where the activity itself is not genuine or is not carried on in accordance with registration conditions, and that clause (a) must be read purposively to cover diversion away from the institution's objects. Allegations of benefit to specified persons under section 13(3), without proof that the educational activity was sham or that charitable objects were abandoned, did not justify cancellation; such issues are to be addressed at assessment stage. The cancellation order was quashed and registration restored. Highlights Income Tax Sat, 30 May 2026 08:29:40 +0530 https://www.taxtmi.com/highlights?id=100280