M/S. SRI. SRINIVASA EDUCATIONAL & CHARITABLE TRUST,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-2(3), BANGALORE

ITA 835/BANG/2023Status: DisposedITAT Bangalore24 March 2025AY 2021-22Bench: SHRI WASEEM AHMED (Accountant Member), SHRI SOUNDARARAJAN K (Judicial Member)20 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the cancellation of registration was invalid because the AO's satisfaction was borrowed and the PCIT applied amended provisions retrospectively. The Tribunal found legal infirmities in the AO's reference and the retrospective application of law.

What were the facts?

The assessee trust had its registration under section 12AB cancelled by the PCIT based on a reference from the AO following search proceedings. The AO alleged diversion of funds for personal benefit and violations of sections 269SS and 269T.

What were the issues?

Whether the cancellation of registration under Section 12AB was valid when based on a reference made using a subsequently introduced proviso and applied retrospectively. Whether the AO's satisfaction for making the reference was independently formed.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 143(3),Section 132,Section 269SS,Section 269T

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Income Tax Appellate Tribunal, ‘B’ BENCH: BANGALORE

Before: SHRI WASEEM AHMED & SHRI SOUNDARARAJAN K

For Appellant: Shri Vijay Mehta, CA & Shri Mahesh Kumar
For Respondent: Shri Jeetendra Kumar, CIT (DR)
Hearing: 26.02.2025Pronounced: 24.03.2025

PER SHRI WASEEM AHMED, ACCOUNTANT MEMBER:

This appeal has been filed by the assessee trust against the order passed by the Learned Commissioner of Income Tax (Exemptions) [hereinafter referred to as "Learned CIT(E)"] cancelling the registration certificate granted under section 12AB of the Income Tax Act, 1961 (hereinafter referred to as "the Act") with effect from Assessment Year (A.Y.) 2021-22. The assessee has filed concise ground of appeal dated 14th

2.

December 2024, detailed hereunder:

“1. The PCIT (Central) has erred in cancelling the registration of the assessee-trust by passi

The order continues below.

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