2011 (2) TMI 1426 - AT - Income Tax

Summary

Issues involved: Appeal against cancellation of registration u/s 12A of the Income Tax Act, 1961.

Summary:
1. The appeal challenged the cancellation of registration u/s 12A by the Director of Income Tax (Exemption) on the grounds of jurisdiction.
2. The key issue was whether the Director had the power u/s 12AA(3) to cancel the registration granted u/s 12A. The Tribunal held that the Director lacked the authority to cancel the registration under s. 12A, as s. 12AA(3) only applied to registrations granted under s. 12AA(1)(b).
3. The Tribunal emphasized that the provisions of s. 12AA(3) were substantive and prospective, not retrospective, and could not be applied to registrations granted u/s 12A.
4. The subsequent amendment to s. 12AA(3) to include registrations granted u/s 12A was deemed clarificatory and not retrospective, thus the cancellation order was set aside as devoid of jurisdiction.
5. Since the cancellation order was held to be without jurisdiction, the Tribunal did not address other grievances raised by the assessee, rendering them academic.
6. Consequently, the appeal was allowed, and the cancellation order was quashed.

Judges: R. S. Padvekar (Judicial Member) and Pramod Kumar (Accountant Member)

Citation: 2011 (2) TMI 1426 - ITAT MUMBAI