2017 (9) TMI 1414 - HC - Income Tax

Withdraw the registration granted under Section 12A - Exercise of jurisdiction under Section 12AA(3) by the Director of Income Tax (Exemption) - Tribunal held that in the year under consideration AY 2009-10 DIT(Exemption), Mumbai could not have cancelled the registration u/s 12A - Held that - This precise conclusion of the Tribunal in other matters were assailed before this Court. Mr. Kotangle, appearing on behalf of the Revenue and in support of this appeal, brings to our notice order in Director of Income Tax (Exemption) vs. The North Indian Association 2017 (3) TMI 37 - BOMBAY HIGH COURT of this Court. It is conceded that the very question which is proposed as substantial question of law in this appeal stands answered in terms of this order against the Revenue and in favour of the assessee. Following it, we have no hesitation in concluding that the present appeal does not raise any substantial question of law. - Decided against revenue

Summary

Issues:
Challenge to order by Income Tax Appellate Tribunal regarding withdrawal of registration under Section 12A of the Income Tax Act, 1961 for Assessment Year 2009-10.

Analysis:
The High Court heard an appeal by the Revenue challenging the Income Tax Appellate Tribunal's order from 30.6.2014 in Income Tax Appeal No.1100/Mum/2012 for the Assessment Year 2009-10. The Tribunal had allowed the respondent's appeal against the Director of Income Tax (Exemption), Mumbai's order from 26.12.2011, stating that the power to withdraw registration under Section 12A vested in the authority as per the amendment by Finance Act, 2010 effective from 1.6.2010. The Central Board of Direct Taxes Circular No.1/2011 clarified that this amendment applied for the Assessment Year 2011-12 and onwards. However, for the year under consideration, i.e., Assessment Year 2009-10, the Director of Income Tax (Exemption), Mumbai could not have canceled the registration under Section 12A.

The Tribunal's conclusion was challenged in other cases before the Court, and it was noted that a similar issue was decided against the Revenue in a previous order dated 14.2.2017. Consequently, the Court found that the present appeal did not raise any substantial question of law and dismissed it without any order as to costs. Additionally, the Revenue was requested to provide a list of similar appeals, and if details were submitted to the Registry within ten days, all such appeals would be listed for disposal following the orders of two Division Benches of the Court.