Court Upholds Tribunal Decision: Tax Registration Cancellation of Society Invalid Due to Lack of Retroactive Authority.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The High Court upheld the Income Tax Appellate Tribunal's order setting aside the cancellation of registration granted u/s 12A to the assessee-society. The Court held that the Commissioner of Income Tax did not have retrospective jurisdiction to cancel the registration from 2004-05 as the power was conferred only by the 2010 amendment. Even prospectively, cancellation was not warranted as the society's activities of constructing buildings and establishing a college and hospital were incidental to its charitable objects. Transferring funds to another society for establishing hospitals in other districts could not be a ground for cancellation. The cancellation of registration can only be prospective, not retrospective. The Revenue's appeal was dismissed.....