2022 (1) TMI 898

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....dated 6th September, 2017 passed by the Income Tax Appellate Tribunal, B-Bench, Kolkata (the 'Tribunal') in ITA No.1456/Kol/2016. The revenue has raised the following substantial questions of law for consideration: (i) Whether in the facts and in the circumstances of the case, the Learned Tribunal is justified in law and on facts by holding that the assessee trust was not engaged any money laundering activity? (ii) Whether in the facts and circumstances of the case, the Learned Tribunal is justified in law and on facts in setting aside the order for cancellation of registration under Section 12AA(3) of the Income Tax Act, 1961? We have heard Mr. Tilak Mitra, learned standing counsel appearing for the appellant/revenue and Mr. J.P. Khai....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mine the said Mr. Lahiri, such opportunity was not availed by the assessee and, therefore, drew adverse inference and cancelled the registration. The assessee preferred appeal before the Tribunal contending that the order of cancellation of registration granted under Section 12A was in gross violation of the principles of natural justice without disclosing the materials relied upon and without affording reasonable/adequate opportunity to controvert or deal with the same including by way of cross-examination. It was further contended that the cancellation of registration with retrospective effect from 1st April, 2011 was bad in law. Further, it was contended that no adverse inference could have been drawn against the assessee trust solely f....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sustain the order passed by the CIT(E) by referring the finding recorded therein. The Tribunal after examining the entire evidence which was available on record has held that there is no whisper about the assessee's society or its officer bearers by the said Mr. Lahiri when statement was recorded from him and, therefore, held that merely because the assessee did not cross-examine said Mr. Lahiri, no adverse inference could have been drawn. Furthermore, the Tribunal on facts found that the CIT(E) had not brought any material on record linking several persons either with the assessee's society or with the office bearers of the assessee's society. It has also noted that no questions were posed to the president of the assessee's society with re....