2013 (2) TMI 826 - HC - Income Tax

Summary

Issues Involved:
The judgment involves the cancellation of registration under section 12A of the Income-tax Act, 1961 prior to an amendment brought about in section 12AA(3) on 01.06.2010.

Cancellation of Registration under Section 12A:
The appeal was against the cancellation of registration granted to the respondent under section 12A, which was cancelled by the Director of Income-tax (Exemptions) before the amendment in section 12AA(3) on 01.06.2010. The Tribunal held that the Director did not have the jurisdiction to cancel the registration before the said amendment, as clarified in the case of DIT v. Mool Chand Khairati Ram Trust-339 ITR 622 (Del). The power to cancel registration under section 12AA(3) was limited to registrations granted under clause (b) of sub-section 1 of section 12AA until 01.06.2010. Therefore, the Tribunal's decision to invalidate the cancellation order was upheld, and no other legal questions were raised in the appeal.

Conclusion:
The High Court dismissed the appeal, affirming the Tribunal's decision that the cancellation of registration under section 12A was invalid due to the lack of jurisdiction of the Director of Income-tax (Exemptions) before the relevant amendment in section 12AA(3) on 01.06.2010.