THE DIRECTOR OF INCOME TAX EXEMPTIONS vs. DEFENCE GOVERNMENT OFFICIALS

The appeal was admitted to consider the following four substantial questions of law: “1. Whether the Tribunal was correct in holding that the Commissioner did not have the jurisdiction to pass an order dated 16.05.2002 u/s 12AA of the Act to withdraw the registration granted u/s 12A(a) of the Act on 15.05.1985 despite the direction issued by the Hon’ble High Court in WP No.24585/1991 in the case of Assessee and Madhya Pradesh

Whether the Tribunal was correct in failing to record a finding on the issue that Commissioner having found that the assessee is a self help institution to help only members who purchase sites at the discretion of the managing committee without carrying on any charitable activity can continued to be granted registration u/s 12A(a) of the Act?

Whether the provisions of sub-section 3 to Section 12AA of the Act is clarificatory in nature and applicable to the pending matter herein?

Whether the Tribunal is right in law in coming to the conclusion that the Commissioner has no power to cancel the registration under Section 12A(a) once granted before the amendment Act under Sub-Section 3 to 12AA with effect from 1.10.2004 notwithstanding the provision of 21 of the General Causes(sic) Act, 1897.”

It is submitted that all the four substantial questions of law are covered by the judgment of the Hon’ble Supreme Court in the case of INDUSTRIAL INFRASTRUCTURE DEVELOPMENT CORPORATION (GWALIOR) M.P. LTD. vs. COMMISSIONER OF INCOME- TAX, GWALIOR, reported in (2018) 403 ITR 1 (SC).

Following the said judgment, the substantial questions of law are answered in favour of the assessee and against the Revenue. The appeal is disposed off.