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2022 (11) TMI 818 - AT - Income TaxExemption u/s 11 - cancellation of registration of the assessee u/s 12AA(3) - As per CIT-E activities carried on by the Appellant are not genuine and are not in accordance with the objects of the assessee - HELD THAT - A perusal of the objects show that the assessee society is created to promote national integration, communal amity and social harmony and uphold the democratic set up, secular order and rule of law in the country. There are in total 17 objects mentioned in the Memorandum of Association. The Ministry of Home Affairs, vide Notification dated 27.09.2022 published in the Gazette of India dated 28.09.2022 as notified by the Ministry of Home Affairs clearly demonstrates the malafides of the assessee society. Considering the aforementioned Notification, the appeal of the assessee is dismissed.
Issues:
Cancellation of registration under section 12AA(3) of the Income-tax Act, 1961 based on alleged non-genuine activities and violation of provisions. Analysis: The appeal was filed against the cancellation of registration under section 12AA(3) of the Income-tax Act, 1961 by the CIT(E) - Delhi. The assessee raised multiple grievances challenging the cancellation, alleging that the order was perverse, bad in law, and void ab-initio. The CIT(E) was accused of not providing adequate opportunities for the assessee to present their case and not confronting them with adverse material. The assessee also questioned the justification for invoking various sections of the Income-tax Act for the cancellation. The appeal proceedings were adjourned twice due to the absence of the assessee, leading to a decision to proceed ex parte. The objects of the assessee society were outlined, focusing on promoting national integration, communal harmony, and social welfare. However, a Gazette notification by the Ministry of Home Affairs highlighted the involvement of the Popular Front of India (PFI) in criminal and terror activities, leading to the cancellation of their registration under section 12A or 12AA of the Income Tax Act, 1961. The notification detailed various criminal acts, international linkages with terrorist groups, and unlawful financial activities attributed to the PFI and its affiliates. The Government declared the PFI and its associates as an "unlawful association" due to their anti-national activities and threat to public order. Based on the Ministry of Home Affairs' Gazette notification, which demonstrated the malafides of the assessee society, the Tribunal dismissed the appeal. The decision was made considering the serious allegations and findings against the PFI and its affiliates, leading to the rejection of the appeal in ITA No. 465/DEL/2021. The judgment was pronounced on 14.11.2022, upholding the cancellation of registration under section 12AA(3) of the Income-tax Act, 1961.
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