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2024 (6) TMI 1053 - AT - Income TaxIssues Involved: 1. Withdrawal of Stay Petition 2. Delay in Filing Appeal 3. Non-Est Order Due to Missing Document Identification Number (DIN) 4. Merits of Cancellation of Registration u/s 12AA Summary: 1. Withdrawal of Stay Petition: The assessee's stay petition No.12/CTK/2023 was dismissed as withdrawn upon the request of the assessee's representative. 2. Delay in Filing Appeal: The appeal filed by the assessee was delayed by 97 days. The delay was due to the assessee initially filing a writ petition before the Hon'ble Jurisdictional High Court of Orissa, which was later withdrawn with permission to file an appeal to the Tribunal. The Tribunal condoned the delay considering these circumstances and proceeded to dispose of the appeal on merits. 3. Non-Est Order Due to Missing Document Identification Number (DIN): The assessee argued that the order passed u/s 12AB(4) on 20.6.2023 was non-est as it lacked a Document Identification Number (DIN), violating CBDT Circular No.19/2019. The Tribunal acknowledged the binding nature of the CBDT circular on lower authorities and quashed the order for not having a DIN. However, this finding was suspended due to a stay by the Hon'ble Supreme Court in a related case (CIT vs Brandix Mauritius Holdings Ltd.). 4. Merits of Cancellation of Registration u/s 12AA: The Tribunal examined the merits of the cancellation of the assessee's registration u/s 12AA. The key points considered were: - Previous Show Cause Notices and Proceedings: The Tribunal noted that a show cause notice issued on 18.10.2016 had not resulted in any further action, implying the proceedings were dropped. - Assessment Orders and Appellate Decisions: The Tribunal reviewed previous assessment orders and appellate decisions which had consistently ruled in favor of the assessee, affirming the charitable nature of its activities and the legitimacy of its donations. - New Show Cause Notice (6.10.2022): The Tribunal found that the issues raised in the new show cause notice were either previously settled or not substantial enough to warrant cancellation. Specifically, the issues of business activity and donations to Aids Awareness Trust of Orissa had been resolved in favor of the assessee in earlier proceedings. - Retrospective Cancellation: The Tribunal opined that retrospective cancellation of registration from 1.4.2014 was erroneous and not permissible, as the issues had already been settled by appellate authorities. The Tribunal concluded that the cancellation of the registration u/s 12AA by the order dated 20.6.2023 was unjustified and annulled it on merits. Conclusion: The appeal filed by the assessee was allowed, and the stay petition was dismissed as withdrawn. The order cancelling the registration u/s 12AA was quashed on both procedural and substantive grounds.
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