Asian Centre for Organisation Research & Development, New Delhi V. DIT, New Delhi

ITA 3690/DEL/2008

• Counselvise Citation: 369020114 RSA 2008
• Duration Of Justice: 3 year(s) 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-01-2013
• Assessment Year: misc
• Appeal Filed On: 16-12-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Cancellation of registration
• Section: 143(3); 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: A NEW DELHI BEFORE SHRI AD JAIN, JM AND SHRI J.SUDHAKAR REDDY, A.M. ITA NO: 3690/DEL/2008 ASSESSMENT YEAR 2009-10 ASIAN CENTRE FOR ORGANISATION VS. DIT(E), NEW DELH I RESEARCH & DEVELOPMENT 146, MUNIRKA VIHAR NEW DELHI 67 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANOOP SHARMA & SH. MK GIR I, ADV. RESPONDENT BY : SHRI PIRTHI LAL, SR.D.R. O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE DIT(EXEMPTIONS), DELHI DT. 10 TH OCTOBER,2008, WHEREIN REGISTRATION GRANTED TO THE ASSESSEE UNDER SECTION 12A BY THE DI T(E), DELHI VIDE ORDER DT. 16.7.1983 WAS CANCELLED WEF THE ASSESSMENT YEAR 2009-2010. 2. THE SHORT POINT THAT WE HAVE CONSIDERED, IS WHETHER THE DIT(E), NEW DELHI HAS THE POWER TO DO SO. THE JURISDICTIONA L HIGH COURT IN THE CASE OF DIT(E) VS. MOOL CHAND KHAIRAT I RAM TRUST (2011) 339 ITR 622 (DELHI) HAS HELD AS FOLLOWS IN SUB SECTION (1) CLAUSE (B)AND SUB SECTION (3) O F SECTION 12AA OF THE I.T.ACT, 1961, CANCELLATION OF REGISTRATION WAS PRO VIDED WHERE THE 2 REGISTRATION WAS GRANTED UNDER CLAUSE (B) OF SUB SE CTION (1). FURTHER, CANCELLATION UNDER SUB SECTION(3) WAS ALSO PROVIDED WHERE THE REGISTRATION WAS OBTAINED AT ANY TIME UNDER SECTION 12A (WHETHER UNDER CLAUSE (A) OR CLAUSE (AA) OF SUB SECTION (1) OF SECTION 12A). BU T THIS POWER OF CANCELLATION OF REGISTRATION UNDER SECTION 12A CAME TO BE INCORP ORATED BY WAY OF AMENDMENT INTRODUCED BY THE FINANCE ACT, 2010, WEF JUNE 1,2010. NOW, WEF JUNE 1, 2010, THE POWER VESTS WITH THE COMMISSI ONER TO CANCEL THE REGISTRATION GRANTED UNDER ANY OF THE CLAUSES OF SU B SECTION (1) OF SECTION 12A. THE ASSESSEE TRUST OBTAINED REGISTRATION IN DECEMBE R, 1974. BASED ON THIS, THE ASSESSEE GOT EXEMPTION OF INCOME TAX IN T HE ASSESSMENTS UNDER SECTION 143(3) FOR THE ASSESSMENT YEAR 1996-97 TO 2 005-06. THE DIT CANCELLED THE REGISTRATION UNDER SECTION 12AA(3) WE F ASSESSMENT YEAR 2002-03 BY HIS ORDER DT. JUNE 30,2009. THE TRIBUN AL SET ASIDE THE ORDER OF CANCELLATION. ON APPEAL TO THE HIGH COURT : HELD, DISMISSING THE APPEAL, THAT THE CANCELLATION OF REGISTRATION WAS NOT VALID. 3. RESPECTFULLY FOLLOWING THE SAME WE HOLD THAT THE DIT(E) DOES NOT HAVE THE POWER TO CANCEL THE REGISTRATION GRANTED U NDER SECTION 12A OF THE INCOME TAX ACT, 1961 PRIOR TO THE AMENDMENT BY THE FINANCE ACT, 2010 W.E.F. 1.6.2010 TO SUB SECTION 3 OF S.12AA OF THE INCOME TAX ACT, 1961. 4. IN THE RESULT WE ALLOW THE APPEAL OF THE ASSESSE E. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH SEPTEMBER,2012. SD/- SD/- (A.D. JAIN) (J.SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: THE 17 TH SEPTEMBER, 2012 *MANGA 3 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT (A); 5.DR; 6.GUARD FILE BY ORDER DY. REGISTRAR 1. DATE OF DICTATION: 06/09 2. DRAFT PLACED BEFORE THE AUTHOR ON: 11/09 3. DRAFT PROPOSED AND PLACED BEFORE SECOND MEMBER ON: 4. DRAFT DISCUSSED/APPROVED BY THE SECOND MEMBER ON: 5. APPROVED DRAFT CAME TO SR.P.S. ON: 6. DATE OF PRONOUNCEMENT : 7. FILE SENT TO BENCH CLERK ON : 8. DATE ON WHICH FILE GIVEN TO HEAD CLERK ON: 9. DATE OF DISPATCHING THE ORDER ON :