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2017 (10) TMI 1163 - HC - Income TaxCancelled the registration under Section 12AA(3) - Held that - The jurisdiction of the Writ Court in such cases to intervene in proceedings in determination of the decision of the Settlement Commission, which are statutorily final are necessarily sacrosanct in terms of the various judgments of this Court, as noticed in that judgment, therefore, that decision does not confer any power to the Court in this case. So far as the decision in Mohan Meakin 2017 (9) TMI 955 - ITAT DELHI with respect to the documents being characterized as dumbed case is concerned, the Court notices that some of them may overlap with the documents of the Assessee, but that itself is not determinative of their character or their credibility. The Court, based upon the materials on that case, so far as the Mohan Meakin is concerned, rendered its findings in the context of the facts of that case. Further, in paragraph 56 of that order, the Tribunal had expressly recorded that search proceedings took place in the context of Section 153A, in the very premises of Mr. Miglani, i.e. with respect to the Assessee. The Court is of the opinion that there is no merit in the Appeal. However, it is clarified that the cancellation of registration in this case could have related back only from the date of introduction of Section 12AA(3) i.e. with effect from 01.10.2014 and not earlier.
Issues:
1. Disentitlement to registration under Section 12AA as a Charitable Trust. 2. Validity of cancellation of registration under Section 12AA. 3. Interpretation of statements made during search and seizure. 4. Comparison with judgments in similar cases. 5. Applicability of the date of cancellation of registration. Issue 1: Disentitlement to registration under Section 12AA as a Charitable Trust The Assessee challenged the order of the Income-Tax Appellate Tribunal (ITAT) upholding the C.I.T's determination that it was disentitled to registration under Section 12AA as a Charitable Trust under the Income-Tax Act, 1961. The CIT had cancelled the registration after considering seized material and statements, a decision upheld by the ITAT. Issue 2: Validity of cancellation of registration under Section 12AA The Assessee argued that the statement made during the search was not attributable to the Assessee/Association as it was made in relation to the premises of an individual. However, the court found that the information provided in the statement pointed to the activities of the Association, justifying the cancellation of registration. Issue 3: Interpretation of statements made during search and seizure The Assessee relied on judgments in similar cases to argue against the cancellation of registration. The court noted that the statements and documents seized were not determinative of their character or credibility, emphasizing that the findings of the lower authorities were valid in this context. Issue 4: Comparison with judgments in similar cases Comparisons were drawn with judgments involving other assessees like Radico Khaitan and Mohan Meakin. The court clarified that the decisions in those cases did not confer any power to intervene in the present case, emphasizing the specific context and findings of each case. Issue 5: Applicability of the date of cancellation of registration The court dismissed the appeal, stating that the cancellation of registration could only relate back to the date of the introduction of Section 12AA(3), i.e., from 01.10.2014, and not earlier. The appeal was dismissed based on these observations, affirming the decision of the lower authorities regarding the cancellation of registration.
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