TaxTMI 
TaxTMI 
2013 (6) TMI 94
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....ax as provided for under Section 12-A of the Income Tax Act (hereinafter referred to as 'the Act'). The registration was granted by the order dated 28th May, 1993 w.e.f. 2nd November, 1991, vide annexure-4 to the writ petition. The petitioner maintains that it is pursuing its charitable objects and there is no change in its activity. However, during the course of the assessment proceedings relating to the assessment year 2005-06, the Assessing Officer opined that the objects of the petitioner's society is not charitable. He, therefore, invited the attention of the Commissioner of Income Tax who initiated the proceedings for cancellation of certificate of the petitioner granted under Section 12-A of the Act. A show cause notice was given to ....
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....he nature of one time registration and power of its cancellation has been confirmed for the first time on 1st June, 2010. Meaning thereby, the day on which the impugned order was passed, the Commissioner of Income Tax had bereft of any such power. In reply, Sri R.K. Upadhyay, learned standing counsel for the department submits that the petitioner has alternative remedy by way of appeal under Section 253(1)(c) of the Act. On merits, he supports the impugned order. Considered the respective submissions of the learned counsel for the parties and perused the record. On the basis of respective arguments of the counsel for the parties, the following two points fall for consideration before this Court. (1) Whether the writ petition is liable t....
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.... express provision in section 12A of the Act for cancellation of the registration. The Court took note of the applicability of Section 21 of the General Clauses Act, 1897 and held that the registration cannot be cancelled in exercising of power under Section 12-A of the Act. The aforesaid decision has been followed in Commissioner of Income Tax versus Manav Vikas Avam Sewa Sansthan, (2011) 336 ITR 250 (All). The relevant paragraphs are reproduced below: "Further admittedly in the present case, the sub-section (3) of section 12AA of the Act has came into force w.e.f. 01.01.2004 by the Finance (2) Act, 2004. As such while passing the order dated 13.03.2009, the Commissioner of Income Tax-II, Lucknow had no power whatsoever to review or recal....
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....ted 17th March, 2009 cancelling the registration of the petitioner is totally without jurisdiction and illegal in view of the law as it then stood. By way of clarification, we may add that Section 12-AA(3) of the Act has been amended subsequently2010 and w.e.f. 1st June, 2010, the power to cancel the registration under Section 12-A of the Act has been provided for to the Commissioner of Income Tax. by Finance Act, In view of the above, we find substance in the argument of the learned counsel for the petitioner that the impugned order is liable to be quashed as it is totally without jurisdiction. We may place on the record that during course of argument, learned counsel for the petitioner submitted that the proceedings giving rise to the p....