TaxTMI 
TaxTMI 
2010 (9) TMI 782
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.... 1 of the appeal, the assessee society has challenged the jurisdiction of the learned CIT in cancelling the registration. The ground of appeal reads as under: "On the facts and circumstances of the case and in law, the CIT, Lucknow had no jurisdiction to pass the order under s. 12AA(3) dt. 16th May, 2010 cancelling the registration of the appellant under s. 12A granted to it on 1st March, 1999 w.e.f. 1st April, 1998. The order of the CIT, Lucknow, being devoid of proper jurisdiction, needs to be cancelled and the registration of the appellant under s. 12A must be restored." 3. Briefly stated the facts of the case are that the assessee is a society registered under the Societies Registration Act, 1860. The registration under s. 12A of ....
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....er s. 12A of the IT Act, 1961 bearing No. 146 of 1999 on 1st April, 1998. In view of the findings of fact recorded in the assessment order of the assessee society dt. 18th Dec, 2009 for asst. yr. 2007-08 made under s. 143(3) of the IT Act, 1961, it appears that the activities of the assessee society are not genuine insofar as these are not for charitable purposes. Accordingly, the assessee society is required to explain as to why the registration granted under s. 12A should not be withdrawn. Hearing for the purpose is fixed on 26th March, 2010 at 11 a.m. at the office of the undersigned at Aayakar Bhawan, Ashok Marg, Lucknow." The assessee submitted its reply on 21st April, 2010 stating that the society is engaged in running a school, vi....
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.... of the Hon'ble jurisdictional High Court-Lucknow Bench in the case of, Oxford Academy for Career Development v. Chief CIT [2009] 315 ITR 382 (All.). 6. Shri Alok Mitra, learned Departmental Representative, on the other hand, heavily relied on the order of the learned CIT. 7. We have heard the rival submissions and have also perused the materials available on record. It is an admitted fact that the assessee society was granted registration under s. 12A of the Act by the learned CIT, Lucknow on 1st March, 1999 and the said order was effective from 1st April, 1998. Sec. 12AA was introduced in the Act by the Finance (No. 2) Act, 1996 w.e.f. 1st April, 1997 and when the said order under s. 12A was passed in the assessee's case on 1st Marc....
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....institution under s. 12AA being a quasi judicial order does not fall within the category of orders mentioned under s. 21 of the General Clauses Act, 1897, which provides that the power conferred on an authority to issue orders includes the power to rescind such orders, and the CIT would not have power to rescind the order passed by the CIT earlier granting the registration to a trust or institution. Sec. 12AA(3) was incorporated w.e.f. 1st Oct., 2004, to empower the CIT to cancel the registration granted to a trust or institution. The object of this provision is not clarificatory or explanatory. So prior to that date, the authorities granting registration had no inherent power to withdraw or revoke the registration already granted." 9. I....