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TMI Blog2010 (10) TMI 820X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances for exercise of such power. Although, the Tribunal's order quashed an earlier order of the Commissioner dated December 15, 2006, under section 12AA(3) the same order also clarified that such power "should be utilized quite cautiously and consciously". Therefore, no hesitation to direct of the impugned notice dated September 24, 2009 issued under section 12AA(3) vide annexure 1 to the writ petition and we order accordingly - writ application is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... sment proceeding. It does not mean that the assessment proceeding being a quasi-judicial proceeding should be interfered like the present one. Rather in all fairness the Commissioner of Income-tax should have taken precaution to complete the assessment expeditiously and then should have arrived at the conclusion of proposed cancellation of registration. The present act of the Commissioner of Income-tax amounts to interruption in the assessment proceeding. The power under section 12AA(3) has been enunciated under the Act is an unbridled power in the hands of the Commissioner of Income-tax to safeguard the interests of the Revenue as and when he is satisfied to do so. It does not mean that this unbridled power given by the Act after much deli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 12A of the Income-tax Act, 1961, was allowed by the Commissioner of Income-tax, Orissa, vide his order dated February 7/9, 1996, granting registration to the petitioner-institution with effect from April 1, 1995, and the same remains valid and subsisting as on date. From annexure 5, it appears that an earlier attempt made by the Commissioner of Income-tax, Bhubaneswar, vide its order dated December 15, 2006, passed under section 12AA(3) of the Income-tax Act, 1961, which was challenged by the petitioner before the Income-tax Appellate Tribunal in I. T. A. No. 86 CTK 2007. The said appeal came to be allowed by the Full Bench of the Tribunal, vide order dated October 5, 2007, and the conclusion of which has been quoted herein-above. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner-institution. This order had came to be quashed by the Income-tax Appellate Tribunal vide judgment dated October 5, 2007, in I. T. A. No. 86/CTK/2007 on the ground that such notice was premature. Accordingly, he submits that the power under section 12AA(3) of the Income-tax Act continues to be vested in the Commissioner of Income-tax and merely because an earlier order under section 12AA of the Income-tax Act had been quashed by the Income-tax Appellate Tribunal, it did not mean that the Income-tax Commissioner was denuded of his authority, to initiate another proceeding under section 12AA(3) of the Income-tax Act. 4. In response to the contention made by the learned counsel for the Department, learned counsel for the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the counter-affidavit, since the power and authority under section 12AA of the Act is only vested with the Com-missioner of Income-tax Act and not with any Income-tax Officer (Tech.), who had issued such notice. 5. On a consideration of the submissions of the learned counsel for the parties as noted hereinabove and on a perusal of the impugned notice under annexure 1 as well as the order of the Income-tax Appellate Tribunal under annexure 6, it is clear therefrom that the Tribunal has held that though power has been vested under section 12AA(3) of the Income-tax Act in the Commissioner of Income-tax to safeguard the interests of the Revenue, but such power vested in him can only to be exercised by him on a clear-cut satisfaction of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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