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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

Cmr Technical Education Society, Hyderabad vs. DCIT., Central Circle-2(1), Hyderabad

In the result, the appeal filed by the assessee in ITA

ITA 867/HYD/2025[2022-23]Status: DisposedITAT Hyderabad25 Aug 2025AY 2022-23
Section 12A

income of individual trustees in the hands of the society is bad in law. 7. The Ld. PCIT (Central) has erred in cancelling the registration of the society considering the fact that the said excess collections form part of the hostel receipts & the same are already offered ... hands of the individual trustees in their individual capacity. 8. The Ld. PCIT (Central) has no jurisdiction to cancel the registration of the Appellant Society considering the hostel receipts as diversion of funds and excess fee collections. 9. In the light of the facts and circumstances of the case

Cmr Technical Education Society, Hyderabad vs. DCIT., Central Circle-2(1), Hyderabad

In the result, the appeal filed by the assessee in ITA

ITA 866/HYD/2025[2019-20]Status: DisposedITAT Hyderabad25 Aug 2025AY 2019-20

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

income of individual trustees in the hands of the society is bad in law. 7. The Ld. PCIT (Central) has erred in cancelling the registration of the society considering the fact that the said excess collections form part of the hostel receipts & the same are already offered ... hands of the individual trustees in their individual capacity. 8. The Ld. PCIT (Central) has no jurisdiction to cancel the registration of the Appellant Society considering the hostel receipts as diversion of funds and excess fee collections. 9. In the light of the facts and circumstances of the case

K M R Educational Society, Hyderabad vs. DCIT., Central Circle-2(1), Hyderabad

In the result, the appeal filed by the assessee in ITA

ITA 865/HYD/2025[2022-23]Status: DisposedITAT Hyderabad25 Aug 2025AY 2022-23

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

income of individual trustees in the hands of the society is bad in law. 7. The Ld. PCIT (Central) has erred in cancelling the registration of the society considering the fact that the said excess collections form part of the hostel receipts & the same are already offered ... hands of the individual trustees in their individual capacity. 8. The Ld. PCIT (Central) has no jurisdiction to cancel the registration of the Appellant Society considering the hostel receipts as diversion of funds and excess fee collections. 9. In the light of the facts and circumstances of the case

K M R Educational Society, Hyderabad vs. DCIT., Central Circle-2(1), Hyderabad

In the result, the appeal filed by the assessee in ITA

ITA 864/HYD/2025[2019-20]Status: DisposedITAT Hyderabad25 Aug 2025AY 2019-20

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

income of individual trustees in the hands of the society is bad in law. 7. The Ld. PCIT (Central) has erred in cancelling the registration of the society considering the fact that the said excess collections form part of the hostel receipts & the same are already offered ... hands of the individual trustees in their individual capacity. 8. The Ld. PCIT (Central) has no jurisdiction to cancel the registration of the Appellant Society considering the hostel receipts as diversion of funds and excess fee collections. 9. In the light of the facts and circumstances of the case

Marri Educational Society, Hyderabad vs. DCIT., Central Circle-2(1), Hyderabad

In the result, the appeal filed by the assessee in ITA

ITA 863/HYD/2025[2022-23]Status: DisposedITAT Hyderabad25 Aug 2025AY 2022-23

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

income of individual trustees in the hands of the society is bad in law. 7. The Ld. PCIT (Central) has erred in cancelling the registration of the society considering the fact that the said excess collections form part of the hostel receipts & the same are already offered ... hands of the individual trustees in their individual capacity. 8. The Ld. PCIT (Central) has no jurisdiction to cancel the registration of the Appellant Society considering the hostel receipts as diversion of funds and excess fee collections. 9. In the light of the facts and circumstances of the case

Marri Educational Society, Hyderabad vs. DCIT., Central Circle-2(1), Hyderabad

ITA 862/HYD/2025[2019-20]Status: DisposedITAT Hyderabad25 Aug 2025AY 2019-20
For Appellant: Shri C. Maheswar Reddy, C.A
Section 12A

income of individual trustees in the hands of the society is bad in law. 7. The Ld. PCIT (Central) has erred in cancelling the registration of the society considering the fact that the said excess collections form part of the hostel receipts & the same are already offered ... hands of the individual trustees in their individual capacity. 8. The Ld. PCIT (Central) has no jurisdiction to cancel the registration of the Appellant Society considering the hostel receipts as diversion of funds and excess fee collections. 9. In the light of the facts and circumstances of the case

Chandramma Educational Society, Hyderabad vs. DCIT., Central Circle-2(1), Hyderabad

In the result, the appeal filed by the assessee in ITA

ITA 861/HYD/2025[2022-23]Status: DisposedITAT Hyderabad25 Aug 2025AY 2022-23

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

income of individual trustees in the hands of the society is bad in law. 7. The Ld. PCIT (Central) has erred in cancelling the registration of the society considering the fact that the said excess collections form part of the hostel receipts & the same are already offered ... hands of the individual trustees in their individual capacity. 8. The Ld. PCIT (Central) has no jurisdiction to cancel the registration of the Appellant Society considering the hostel receipts as diversion of funds and excess fee collections. 9. In the light of the facts and circumstances of the case

Chandramma Educational Society, Hyderabad vs. DCIT., Central Circle-2(1), Hyderabad

In the result, the appeal filed by the assessee in ITA

ITA 860/HYD/2025[2019-20]Status: DisposedITAT Hyderabad25 Aug 2025AY 2019-20

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

income of individual trustees in the hands of the society is bad in law. 7. The Ld. PCIT (Central) has erred in cancelling the registration of the society considering the fact that the said excess collections form part of the hostel receipts & the same are already offered ... hands of the individual trustees in their individual capacity. 8. The Ld. PCIT (Central) has no jurisdiction to cancel the registration of the Appellant Society considering the hostel receipts as diversion of funds and excess fee collections. 9. In the light of the facts and circumstances of the case

M.G.R.Educational Society, Hyderabad vs. DCIT., Central Circle-2(1), Hyderabad

ITA 859/HYD/2025[2022-23]Status: DisposedITAT Hyderabad25 Aug 2025AY 2022-23
Section 12A

income of individual trustees in the hands of the society is bad in law. 7. The Ld. PCIT (Central) has erred in cancelling the registration of the society considering the fact that the said excess collections form part of the hostel receipts & the same are already offered ... hands of the individual trustees in their individual capacity. 8. The Ld. PCIT (Central) has no jurisdiction to cancel the registration of the Appellant Society considering the hostel receipts as diversion of funds and excess fee collections. 9. In the light of the facts and circumstances of the case

M.G.R.Educational Society, Hyderabad vs. DCIT, Central Circle-2(1), Hyderabad

ITA 858/HYD/2025[2017-18]Status: DisposedITAT Hyderabad25 Aug 2025AY 2017-18
For Appellant: Shri C. Maheswar Reddy, C.A
Section 12A

income of individual trustees in the hands of the society is bad in law. 7. The Ld. PCIT (Central) has erred in cancelling the registration of the society considering the fact that the said excess collections form part of the hostel receipts & the same are already offered ... hands of the individual trustees in their individual capacity. 8. The Ld. PCIT (Central) has no jurisdiction to cancel the registration of the Appellant Society considering the hostel receipts as diversion of funds and excess fee collections. 9. In the light of the facts and circumstances of the case

Vijetha Donthiri, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

In the result, the appeal of the assessee is allowed

ITA 1355/HYD/2024[2019-20]Status: DisposedITAT Hyderabad20 Aug 2025AY 2019-20

Bench: Shri Ravish Sood & Shri Madhusudan Sawdiaआ.अपी.सं /Ita No.1355/Hyd/2024 (निर्धारण वर्ा/Assessment Year:2019-20) Vijetha Donthiri, Asst. Commissioner Of Income Vs. Hyderabad. Tax, Central Circle 2(4), Pan:Alqpd4873P Hyderabad. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri M.V. Prasad, C.A. रधजस् व द्वधरध/Revenue By: Shri Gurpreet Singh, Sr-Dr सुिवधई की तधरीख/ 05/08/2025 Date Of Hearing: घोर्णध की तधरीख/ 20/08/2025 Pronouncement: आदेश/Order Per Madhusudan Sawdia, A.M.: This Appeal Is Filed By Vijetha Donthiri (“The Assessee”), Feeling Aggrieved By The Order Passed By The Learned Commissioner Of Income Tax (Appeals)-12, Hyderabad (“Ld. Cit(A)”), Dated 29.11.2024 For The A.Y. 2019-20. 2. The Assessee Has Raised The Following Grounds Of Appeal :

For Appellant: Shri M.V. Prasad, C.AFor Respondent: Shri Gurpreet Singh, SR-DR
Section 132Section 143(3)Section 153Section 153C

assessment order regarding the activities of the trust not being genuine and not carried out in accordance with the trust deed or cancellation of registration, denial of benefits of Sections 11 and 12 etc. are concerned, the same would not be affected by this judgment. It is, thus, clarified that

Sabudh Foundation, Chandigarh vs. Commissioner of Income Tax (CIT) Exemptions, Chandigarh

The appeals stand allowed for statistical purposes

ITA 45/CHANDI/2025[2025-26]Status: DisposedITAT Chandigarh18 Aug 2025AY 2025-26

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No. 45/Chandi/2025 & 2. आयकरअपीलसं./ Ita No. 117/Chandi/2025 Sabudh Foundation Cit (Exemption) H No 329 Sector 33A बनाम/ Room No 1 5Th Floor Chandigarh-160020 Cr Building, Himalaya Marg Vs. Sector 17-E, Chandigarh "थायीलेखासं./जीआइआरसं./Pan/Gir No.Abacs-5751-N (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri Anmol Attry(Ca) -Ld. Ar ""थ"कीओरसे/Respondent By : Smt.Tarundeep Kaur (Cit) – Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 07-08-2025 घोषणाकीतारीख /Date Of Pronouncement : 18-08-2025

For Appellant: Shri Anmol Attry(CA) -Ld. ARFor Respondent: Smt.Tarundeep Kaur (CIT) – Ld. DR
Section 12(1)(ac)Section 12ASection 12A(1)(ac)Section 80GSection 80G(5)Section 80G(5)(iii)

regular registration granted u/s 12A(1)(ac)(i) on 24-11-2021 for 5 years was held to be irregular and consequently, cancelled by registration authority. 4. The prime argument of Ld. AR is that suo-moto cancellation is bad-in-law. The Ld. AR urged that due to unintentional ... acted in good faith and relied on valid successive approvals as granted by the appropriate authority from time to time. The suo-moto cancellation of registration, therefore, could not be held to be justified. On these facts, we set aside the impugned orders and restore the applications back

Sabudh Foundation, Chandigarh vs. Commissioner of Income Tax(CIT) Exemption, Chandigarh

The appeals stand allowed for statistical purposes

ITA 117/CHANDI/2025[2025-26]Status: DisposedITAT Chandigarh18 Aug 2025AY 2025-26

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No. 45/Chandi/2025 & 2. आयकरअपीलसं./ Ita No. 117/Chandi/2025 Sabudh Foundation Cit (Exemption) H No 329 Sector 33A बनाम/ Room No 1 5Th Floor Chandigarh-160020 Cr Building, Himalaya Marg Vs. Sector 17-E, Chandigarh "थायीलेखासं./जीआइआरसं./Pan/Gir No.Abacs-5751-N (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri Anmol Attry(Ca) -Ld. Ar ""थ"कीओरसे/Respondent By : Smt.Tarundeep Kaur (Cit) – Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 07-08-2025 घोषणाकीतारीख /Date Of Pronouncement : 18-08-2025

For Appellant: Shri Anmol Attry(CA) -Ld. ARFor Respondent: Smt.Tarundeep Kaur (CIT) – Ld. DR
Section 12(1)(ac)Section 12ASection 12A(1)(ac)Section 80GSection 80G(5)Section 80G(5)(iii)

regular registration granted u/s 12A(1)(ac)(i) on 24-11-2021 for 5 years was held to be irregular and consequently, cancelled by registration authority. 4. The prime argument of Ld. AR is that suo-moto cancellation is bad-in-law. The Ld. AR urged that due to unintentional ... acted in good faith and relied on valid successive approvals as granted by the appropriate authority from time to time. The suo-moto cancellation of registration, therefore, could not be held to be justified. On these facts, we set aside the impugned orders and restore the applications back

DCIT, Mumbai vs. Jamsetji Tata Trust, Mumbai

In the result, both the appeals of the revenue are dismissed

ITA 2058/MUM/2025[2016-17]Status: DisposedITAT Mumbai08 Aug 2025AY 2016-17

Bench: Shri Saktijit Dey, Hon’Ble & Shri Narendra Kumar Billaiya, Hon’Ble

For Appellant: Suraiya/Sukhsagar Sayal, A/RsFor Respondent: Shri Vivek Perampurna, CIT D/R
Section 10(34)Section 11Section 11(7)Section 12ASection 13(1)

lies with the Principle Commissioner only who is the competent authority. The AO observed that the assessee did apply for the cancellation of registration and the competent authority has granted a hearing opportunity but has not passed any order cancelling the registration which means that the registration is still ... brought to the notice of the ld. CIT(A) that the Tribunal in ITA No. 7329/Mum/2019, held that the order cancelling the registration granted to the assessee trust will have effect from the date on which the hearing on the first show-cause notice requiring the assessee to show- cause

DCIT, Kautilya Bhawan vs. Jamsetji Tata Trust, Mumbai

In the result, both the appeals of the revenue are dismissed

ITA 2057/MUM/2025[2015-16]Status: DisposedITAT Mumbai08 Aug 2025AY 2015-16

Bench: Shri Saktijit Dey, Hon’Ble & Shri Narendra Kumar Billaiya, Hon’Ble

For Appellant: Suraiya/Sukhsagar Sayal, A/RsFor Respondent: Shri Vivek Perampurna, CIT D/R
Section 10(34)Section 11Section 11(7)Section 12ASection 13(1)

lies with the Principle Commissioner only who is the competent authority. The AO observed that the assessee did apply for the cancellation of registration and the competent authority has granted a hearing opportunity but has not passed any order cancelling the registration which means that the registration is still ... brought to the notice of the ld. CIT(A) that the Tribunal in ITA No. 7329/Mum/2019, held that the order cancelling the registration granted to the assessee trust will have effect from the date on which the hearing on the first show-cause notice requiring the assessee to show- cause

Assistant Commissioner of Income Tax (Central Circle), Bareilly vs. Varunarjun Trust, Lucknow

In the result, both the appeals are dismissed

ITA 620/LKW/2024[2016-17]Status: DisposedITAT Lucknow07 Aug 2025AY 2016-17

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

Section 12ASection 133(6)Section 142(1)Section 148Section 153C

genuineness of corpus donation could not be explained by the assessee. Once there can be no addition, there remains no case for cancellation of registration, as this is the case of receipt of donation and not that of misutilisation of Trust Funds. 3.2.2 The additions have been made ... earlier during FY 2014-15 relevant to AY 2015-16, a show cause notice was issued F.No.CIT(Exemptions)/Showcase/2015- 16/8596 dt 29.01.2016 for cancellation of registration U/S 12AA(3) was received from the CIT ( Exemptions), Lucknow in respect of a donation of Rs.23,20,000/- received through RTGS from

Assistant Commissioner of Income Tax, Central Circle, Bareilly vs. Varunarjun Trust, Lucknow

In the result, both the appeals are dismissed

ITA 619/LKW/2024[2015-16]Status: DisposedITAT Lucknow07 Aug 2025AY 2015-16

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

Section 12ASection 133(6)Section 142(1)Section 148Section 153C

genuineness of corpus donation could not be explained by the assessee. Once there can be no addition, there remains no case for cancellation of registration, as this is the case of receipt of donation and not that of misutilisation of Trust Funds. 3.2.2 The additions have been made ... earlier during FY 2014-15 relevant to AY 2015-16, a show cause notice was issued F.No.CIT(Exemptions)/Showcase/2015- 16/8596 dt 29.01.2016 for cancellation of registration U/S 12AA(3) was received from the CIT ( Exemptions), Lucknow in respect of a donation of Rs.23,20,000/- received through RTGS from

M/S.Believers Eastern Church, Thiruvalla vs. The CIT (Exemption), Kochi

In the result, all the appeals filed by the assessees stand allowed

ITA 15/COCH/2021[2020-21]Status: DisposedITAT Cochin04 Aug 2025AY 2020-21

Bench: Shri Inturi Rama Rao, Am & Shri Sonjoy Sarma, Jm

For Appellant: Shri B. Ramakrishnan, &For Respondent: Smt. Veni Raj, CIT-DR
Section 11Section 12ASection 13Section 132

seized material could only be furnished after the search and seizure proceedings were completed. However, learned CIT(E) had proceeded with cancellation of registration granted earlier vide order dated 01/01/2021 passed u/s. 12AA(3) of the Act. The gist of reasons given by the learned CIT(E) for cancellation ... Tribunal vide common order dated 17/03/2022 in ITA Nos.12 to 15/Coch/2021 quashed the order passed by the learned CIT(E) by holding that cancellation of registration is permissible in respect of trust/institution, which had been granted registration, if the activities of the trust or the institution were being carried

Ayana Charitable Trust, Thiruvalla vs. DCIT(Exemption), Trivandrum

In the result, all the appeals filed by the assessees stand allowed

ITA 14/COCH/2021[2020-21]Status: DisposedITAT Cochin04 Aug 2025AY 2020-21

Bench: Shri Inturi Rama Rao, Am & Shri Sonjoy Sarma, Jm

For Appellant: Shri B. Ramakrishnan, &For Respondent: Smt. Veni Raj, CIT-DR
Section 11Section 12ASection 13Section 132

seized material could only be furnished after the search and seizure proceedings were completed. However, learned CIT(E) had proceeded with cancellation of registration granted earlier vide order dated 01/01/2021 passed u/s. 12AA(3) of the Act. The gist of reasons given by the learned CIT(E) for cancellation ... Tribunal vide common order dated 17/03/2022 in ITA Nos.12 to 15/Coch/2021 quashed the order passed by the learned CIT(E) by holding that cancellation of registration is permissible in respect of trust/institution, which had been granted registration, if the activities of the trust or the institution were being carried

Love India Ministries, Thiruvalla vs. The DCIT(Exemption), Kochi

In the result, all the appeals filed by the assessees stand allowed

ITA 13/COCH/2021[2020-21]Status: DisposedITAT Cochin04 Aug 2025AY 2020-21

Bench: Shri Inturi Rama Rao, Am & Shri Sonjoy Sarma, Jm

For Appellant: Shri B. Ramakrishnan, &For Respondent: Smt. Veni Raj, CIT-DR
Section 11Section 12ASection 13Section 132

seized material could only be furnished after the search and seizure proceedings were completed. However, learned CIT(E) had proceeded with cancellation of registration granted earlier vide order dated 01/01/2021 passed u/s. 12AA(3) of the Act. The gist of reasons given by the learned CIT(E) for cancellation ... Tribunal vide common order dated 17/03/2022 in ITA Nos.12 to 15/Coch/2021 quashed the order passed by the learned CIT(E) by holding that cancellation of registration is permissible in respect of trust/institution, which had been granted registration, if the activities of the trust or the institution were being carried