TaxTMI 
TaxTMI 
2010 (10) TMI 820
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....tember, 2009. To The Secretary, Kalinga Institute of Industrial Technology (KIIT), Patia, Bhubaneswar. Madam/Sir, Sub. : Proceedings under section 12AA(3) of the Income-tax Act-Matter regarding. In consequence to the order of the learned Income-tax Appellate Tribunal, Cuttack Bench, Cuttack your case is fixed for hearing before the Commissioner of Income-tax, Bhubaneswar, under section 12AA(3) of the Income-tax Act on October 22, 2009 at 11 am. You are requested to appear on that date before the Commissioner for hearing. Yours faithfully,(Sd.) . . . . . . . . . . . M. R. Rath, Income-tax Officer (Tech.),Bhubaneswar." 2. Mr. R. K. Rath, learned senior counsel appearing for the petitione....
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....ike the present power of cancellation envisaged under section 12AA(3). But such unbridled power should be utilized quite cautiously and consciously. With the aforesaid findings we are of the considered opinion that the order of the Commissioner of Income-tax is a premature one which has been utilized at a prematured stage in haste. Accordingly, the assessee succeeds in its appeal regarding continuance of registration. Before parting with our order it will not be out of place to mention here that our order has nothing to do with the search and seizure assessment proceedings. The concluding finding in the search and seizure assess-ment proceeding may be utilized by the Revenue or by the assessee in their respective favour accordingly. Again, ....
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....f the Income-tax Act, 1961, yet, the self-same order appears to be relied upon and/or referred to in the impugned notice under annexure 1. It is further submitted that the Income-tax Department has also sought to challenge this order of the Tribunal before the High Court but is yet to press the said application, for which reason the same remains pending, as on date. 3. Mr. Mohapatra, learned additional standing counsel appearing for the Income-tax Department, on the other hand, sought to try and justify the impugned notice by stating that, the Commissioner of Income-tax was not denuded of his authority under section 12AA(3) of the Income-tax Act even though the Tribunal had quashed an earlier order dated December 15, 2006 passed by ....
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....n assessment proceeding followed the same and was completed and no adverse finding had been recorded against the petitioner-institution to form any fresh ground for issue of notice. 4.1. Learned counsel for the petitioner further asserts that in the impugned notice, there is no reference to any subsequent fact, event, information or order to form the foundation of the notice under section 12AA(3) of the Income-tax Act and impugned as annexure 1 herein. The only basis referred in the impugned notice was, "in consequence to the order of the learned Income-tax Appellate Tribunal, Cuttack Bench, Cut-tack". This reason was wholly without any foundation and, therefore, the impugned notice ought to be quashed. 4.2. Learned counsel ....