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“cancellation of registration”

Charitable TrustsSection 12AB(4)Section 12AB(4)447 judgments

The decision most relied on for cancellation of registration is Ahmedabad Urban Development Authority v. ACIT (396 ITR 323), cited in 108 judgments on BharatTax.

Leading authorities on cancellation of registration

Ahmedabad Urban Development Authority v. ACIT
396 ITR 323 · 2017 · High Court
108
citing judgments

Development authorities can continue to be regarded as existing for a 'Charitable Purpose' under Section 2(15) of the Income Tax Act, even after the introduction of the proviso to that section. The contention that such authorities automatically lose their charitable status due to the proviso is incorrect.

CIT v. Lucknow Development Authority
265 CTR 433 · 2014 · High Court
52
citing judgments

Funds over which a Development Authority has no control, being used as per State Government directions, are not taxable in its hands. Registration under section 12A is also not conclusive, allowing revenue authorities to examine exemption claims under sections 11 to 13 and cancel registration under section 12AA(3).

CIT v. Batanagar Education
129 Taxmann.com 30 · 2021 · Supreme Court
39
citing judgments

Cancellation of registration under Sections 12AA and 80G of the Income-tax Act is justified when a trust misuses its status by returning substantial donations in cash to donors.

Industrial Infrastructure Development Corporation (Gwalior) M.P. Ltd. v. CIT, Gwalior
403 ITR 1 · 2018 · Supreme Court
39
citing judgments

The power to cancel registration granted to a trust is not an implied power under the General Clauses Act and requires express legislative provision. An express power to cancel registration was introduced later via amendment.

Oxford Academy for Career Development v. Chief CIT
315 ITR 382 · 2009 · High Court
37
citing judgments

The Commissioner of Income Tax (CIT) has no power to cancel registration granted under Section 12A of the Income Tax Act retrospectively, especially when there is no express provision in the Act for such cancellation and the order is quasi-judicial in nature.

Welham Boys' School Society v. CBDT
285 ITR 74 · 2006 · High Court
36
citing judgments

An order passed by the CIT under Section 12A of the Income Tax Act is quasi-judicial. Until October 1, 2004, there was no express provision in the Act for the CIT to cancel a registration certificate once granted.

DIT (Exemptions) v. Mool Chand Khairati Ram Trust
339 ITR 622 · 2011 · High Court
31
citing judgments

The order of the Commissioner of Income Tax (CIT) passed under Section 12A of the Income Tax Act is quasi-judicial in nature. Prior to October 1, 2004, there was no express provision in the Act granting the CIT the power to cancel registration.

DIT (Exemption) v. Khar Gymkhana
385 ITR 162 · 2016 · High Court
27
citing judgments

The cancellation of registration under section 12AA(3) is limited to circumstances specified in the section. Income and application of funds issues are matters of assessment, not grounds for cancellation under section 12AA(3).

Judgments citing cancellation of registration

Vipodha Wellness Foundation, Mumbai vs. Director, Mumbai

In the result, both the appeals of the assessee are allowed for statistical purposes

ITA 5340/MUM/2024[2025-26]Status: DisposedITAT Mumbai22 Nov 2024AY 2025-26

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2025-26 Vipodha Wellness Foundation, Cit Exemptions, 1601, Cts No. 96/1 To 21, Vikas 601, 6Th Floor, Cumbulla Hill, Centre, Chembur (E), Vs. Mtnl, Te Building, Mumbai-400058. Mumbai-400026. Pan No. Aajcv 0387 R Appellant Respondent Assessment Year: 2025-26 Vipodha Wellness Foundation, Director, Mumbai 1601, Cts No. 96/1 To 21, Vikas 601, 6Th Floor, Cumbulla Hill, Centre, Dr. Cg Road, 97/1 To 9 Vs. Mtnl, Te Building, Wadhav Ali Chembur (E), Mumbai-400026. Mumbai-400058. Pan No. Aajcv 0387 R Appellant Respondent

For Appellant: Mr. Ashok MehtaFor Respondent: Mr. Raj Singh Meel, Sr. DR
Section 10Section 11Section 12ASection 80GSection 80G(5)(i)

Wellness Foundation separate orders both dated 25.09.2024, passed by the Ld. Commissioner of Income-tax (Exemption), Mumbai [in short ‘the Ld. CIT(E)’], cancelling the registration of the Trust u/s 12AB and section 80G of the Income-tax Act, 1961 (in short ‘the Act’) respectively. 2. The grounds raised ... assessee in ITA No. 5340/Mum/2024 in relation to cancellation of registration u/s 12AB are reproduced as under: 1. The Learned CIT Exemptions Mumbai erred in rejecting the assessee application u/s 12AB(1)(b) in Form 10AB. 2. The Learned CIT Exemptions Mumbai erred in not giving enough opportunity

Vipodha Wellness Foundation, Mumbai vs. CIT Exemptions, Mumbai

In the result, both the appeals of the assessee are allowed for statistical purposes

ITA 5337/MUM/2024[2025-26]Status: DisposedITAT Mumbai22 Nov 2024AY 2025-26

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2025-26 Vipodha Wellness Foundation, Cit Exemptions, 1601, Cts No. 96/1 To 21, Vikas 601, 6Th Floor, Cumbulla Hill, Centre, Chembur (E), Vs. Mtnl, Te Building, Mumbai-400058. Mumbai-400026. Pan No. Aajcv 0387 R Appellant Respondent Assessment Year: 2025-26 Vipodha Wellness Foundation, Director, Mumbai 1601, Cts No. 96/1 To 21, Vikas 601, 6Th Floor, Cumbulla Hill, Centre, Dr. Cg Road, 97/1 To 9 Vs. Mtnl, Te Building, Wadhav Ali Chembur (E), Mumbai-400026. Mumbai-400058. Pan No. Aajcv 0387 R Appellant Respondent

For Appellant: Mr. Ashok MehtaFor Respondent: Mr. Raj Singh Meel, Sr. DR
Section 10Section 11Section 12ASection 80GSection 80G(5)(i)

Wellness Foundation separate orders both dated 25.09.2024, passed by the Ld. Commissioner of Income-tax (Exemption), Mumbai [in short ‘the Ld. CIT(E)’], cancelling the registration of the Trust u/s 12AB and section 80G of the Income-tax Act, 1961 (in short ‘the Act’) respectively. 2. The grounds raised ... assessee in ITA No. 5340/Mum/2024 in relation to cancellation of registration u/s 12AB are reproduced as under: 1. The Learned CIT Exemptions Mumbai erred in rejecting the assessee application u/s 12AB(1)(b) in Form 10AB. 2. The Learned CIT Exemptions Mumbai erred in not giving enough opportunity

DCIT, Patiala vs. Prime Steel Industries Private Limited, Dirba

In the result, the appeal of the Assessee is allowed whereas, the appeal filed by the Revenue stands dismissed

ITA 500/CHANDI/2024[2021-22]Status: DisposedITAT Chandigarh20 Sept 2024AY 2021-22

Bench: Shri A.D. Jain & Shri Krinwant Sahayआयकर अपील सं./ Ita No. 275/Chd/2024 "नधा"रण वष" / Assessment Year : 2021-22 Prime Steel Industries Private Vs. The Dcit, बनाम Circle, Limited, Semi Industry, Patiala Plot No. 27, Anaj Mandi Dibra, Sangrur "थायी लेखा सं./Pan No: Aagca3988E अपीलाथ"/ Appellant ""यथ"/ Repsondent & आयकर अपील सं./ Ita No. 500/Chd/2024 "नधा"रण वष" / Assessment Year : 2021-22 The Dcit, Vs. Prime Steel Industries Private बनाम Circle, Limited, Semi Industry, Patiala Plot No. 27, Anaj Mandi Dibra, Sangrur "थायी लेखा सं./Pan No: Aagca3988E अपीलाथ"/ Appellant ""यथ"/ Repsondent ( Physical Hearing ) "नधा"रती क" ओर से/Assessee By : Shri Sudhir Sehgal, Advocate & Shri Viboore Garg, Ca राज"व क" ओर से/ Revenue By : Smt. Kusum Bansal, Cit Dr सुनवाई क" तार"ख/Date Of Hearing : 24.07.2024 उदघोषणा क" तार"ख/Date Of Pronouncement : 20.09.2024

For Appellant: Shri Sudhir Sehgal, Advocate and Shri Viboore Garg, CAFor Respondent: Smt. Kusum Bansal, CIT DR
Section 69C

particulars and it was informed by the GST department, that in respect of the above purchases from certain parties, the GST department had cancelled the registration of the parties with retrospective effect and some of the parties had even voluntarily surrendered the GST registration. 8. Further, it was stated that ... that all the purchases and transactions in question are genuine and supported by valid documents and transactions in question were made before the cancellation of registration of those suppliers and after taking into consideration the judgments of the Supreme Court and various High Courts, which have been referred in this

Prime Steel Industries Private Limited, Semi Industry Plot No.-27, Anaj Mandi Dirba, Sangrur, Punjab vs. The Assessing Officer NFAC, the Jurisdictional Assessing Officer, DCIT Circle Patiala, Patiala, Punjab

In the result, the appeal of the Assessee is allowed whereas, the appeal filed by the Revenue stands dismissed

ITA 275/CHANDI/2024[2021-2022]Status: DisposedITAT Chandigarh20 Sept 2024AY 2021-2022

Bench: Shri A.D. Jain & Shri Krinwant Sahayआयकर अपील सं./ Ita No. 275/Chd/2024 "नधा"रण वष" / Assessment Year : 2021-22 Prime Steel Industries Private Vs. The Dcit, बनाम Circle, Limited, Semi Industry, Patiala Plot No. 27, Anaj Mandi Dibra, Sangrur "थायी लेखा सं./Pan No: Aagca3988E अपीलाथ"/ Appellant ""यथ"/ Repsondent & आयकर अपील सं./ Ita No. 500/Chd/2024 "नधा"रण वष" / Assessment Year : 2021-22 The Dcit, Vs. Prime Steel Industries Private बनाम Circle, Limited, Semi Industry, Patiala Plot No. 27, Anaj Mandi Dibra, Sangrur "थायी लेखा सं./Pan No: Aagca3988E अपीलाथ"/ Appellant ""यथ"/ Repsondent ( Physical Hearing ) "नधा"रती क" ओर से/Assessee By : Shri Sudhir Sehgal, Advocate & Shri Viboore Garg, Ca राज"व क" ओर से/ Revenue By : Smt. Kusum Bansal, Cit Dr सुनवाई क" तार"ख/Date Of Hearing : 24.07.2024 उदघोषणा क" तार"ख/Date Of Pronouncement : 20.09.2024

For Appellant: Shri Sudhir Sehgal, Advocate and Shri Viboore Garg, CAFor Respondent: Smt. Kusum Bansal, CIT DR
Section 69C

particulars and it was informed by the GST department, that in respect of the above purchases from certain parties, the GST department had cancelled the registration of the parties with retrospective effect and some of the parties had even voluntarily surrendered the GST registration. 8. Further, it was stated that ... that all the purchases and transactions in question are genuine and supported by valid documents and transactions in question were made before the cancellation of registration of those suppliers and after taking into consideration the judgments of the Supreme Court and various High Courts, which have been referred in this

Dr. B.G. Memorial Trust, Kolkata vs. ITO, Ward-1(2), Exemption, Kolkata

The appeal of the assessee is treated as allowed for statistical purposes

ITA 680/KOL/2024[2013-14]Status: DisposedITAT Kolkata13 Sept 2024AY 2013-14

Bench: Shri Sanjay Garg & Shri Sanjay Awasthii.T.A. No.680/Kol/2024 Assessment Year: 2013-14 Dr. B. G. Memorial Trust..…….…....…………….......…....………....Appellant 6/1, Sarat Chatterjee Avenue Rabindra Sarovar, Kolkata – 700029. [Pan: Aaatd5235A] Vs. Ito, Ward-1(2), Exempt, Kolkata...........................................…..…..... Respondent Appearances By: Shri S. M. Surana, Ar & Sunil Surana, Ar, Appeared On Behalf Of The Appellant. Shri Manas Mondal, Addl. Cit, Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : June 27, 2024 Date Of Pronouncing The Order : September 13, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 18.03.2024 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Brief Facts Of The Case Are That The Assessee Was Registered As A Charitable Institution U/S 12 Of The Act. The Assessee Claimed Deduction Of Income Being A Charitable Institution U/S 11 Of The Act. During The Assessment Proceedings, The Assessing Officer Noted That The Cit(Exemption) Vide Order Dated 22.02.2016 U/S 12Aa(3) Of The Act Has Withdrawn & Cancelled Registration Granted Earlier To The Assessee-Trust. In View Of The Said Cancellation Of Registration, The

Section 11Section 12Section 12ASection 250Section 40Section 40A

12AA(3) of the Act has withdrawn and cancelled registration granted earlier to the assessee-trust. In view of the said cancellation of registration, the I.T.A. No.680/Kol/2024 Assessment Year: 2013-14 Dr. B. G. Memorial Trust Assessing Officer denied the deduction of income to the assessee