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TMI Blog2016 (5) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act vide order dated 24-08-1999. Approval u/s. 80G was also granted to the assessee which was subsequently extended from time to time. The Commissioner of Income Tax vide order dated 21-11-2011 cancelled the registration of the assessee trust on the ground that some of the objects stated in the trust deed were against the spirit of public charitable trust. The Commissioner of Income Tax observed that clause 13(a)(2) and 14(b) of the Trust Deed gives unlimited powers to the President who is also the Settlor of the trust. Against the order of Commissioner of Income Tax cancelling the registration, the assessee preferred an appeal before the Tribunal in ITA Nos. 92 & 93/PN/2012. The Co-ordinate Bench of the Tribunal vide order dated 27-06-2013 set aside the order of Commissioner of Income Tax and restored the matter back to the Commissioner of Income Tax for de novo consideration of the issue after granting opportunity of hearing to the assessee, in accordance with the principles of natural justice. Before the Commissioner of Income Tax, the assessee contended that the objectionable clauses in the trust deed are being amended/repealed. The Commissioner of Income Tax vide impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust in appointing the Chairman, Vice-Chairman and other trustees, he had absolute control over the corpus of the trust, which is against the norms of public charitable trust. The ld. DR submitted that the case laws on which the ld. Counsel for the assessee has placed reliance are not applicable in the facts and circumstances of the present case. The ld. DR prayed for dismissing the appeals of the assessee. 6. We have heard the submissions made by the representatives of rival sides and have perused the orders of the authorities below. The assessee is in appeal assailing the order of Commissioner of Income Tax in cancelling the registration granted to the assessee in the year 1999 and the consequent withdrawal of the approval u/s. 80G(5) of the Act. The first contention of the ld. Counsel for the assessee is that the Commissioner of Income Tax has wrongly exercised his jurisdiction in invoking the provisions of sub-section (3) of section 12AA for cancelling the registration granted u/s. 12AA way back in the year 1999. The provisions of sub-section (3) to section 12AA were inserted by the Finance (No. 2) Act, 2004 w.e.f. 01-10-2004. The newly inserted provision will not operate retro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not review its own order, unless the power of review is expressly conferred on it by the statute under which it derives its jurisdiction as held in the case of Dr. Smt. Kuntesh Gupta v. Management of Hindu Kanya Mahavidyalaya AIR 1987 SC 2186) and the Full Bench decision of this court in the case of Smt. Anarkali v. Deputy Director of Consolidation reported in 1997 (15). So the order passed by the Commissioner of Income-tax-II, Lucknow dated March 13, 2009 is without jurisdiction and void ab initio and the appeal in LT.A. No. 304/LKO/2009 filed by the assessee before the ITAT Lucknow Bench, Lucknow was correctly and rightly allowed by the said authority by order dated July 10, 2009. The Hon'ble High Court of Allahabad in Oxford Academy for Career Development v. Cf. CIT (2009) 315 ITR 382 (All) held that since S. 12AA(3) was incorporated in the Act, w.e.f. 1st Oct. 2004, and not applicable retrospectively, Registration granted to assessee on 1st April, 1999 could not ,therefore, be cancelled by the CIT by invoking powers u/s 12AA(3) of the Act. Even assuming that CIT has power to rescind the order of registration on the ground that registration has been obtained by practicing fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vested or accrued in the past. The effect of the provision is to empower the commissioner to cancel the registration of the trust where he is satisfied that the activities of the trust are not genuine or are not being carried out in accordance with the objects of the trust or Institution. This could not by any stretch of imagination be regarded as retrospective alternation of the law. In the case before us, as per the amendment by the Finance Act, 2010, the Commissioner has claimed to be empowered to initiate steps for the cancellation of the registration of a trust or Institution where the activities of the trust or institution are not genuine or are not being carried out in accordance with the objects thereof even in relation to a trust which was registered under S. 12A as it then stood." So basic requirement for invoking S. 12AA(3) is that the activities of the trust are not genuine and are not being carried out in accordance with the objects of the trust. The CIT has recorded her findings in the order u/s 12AA(3) that the trust is imparting knowledge at cost and therefore, not a charitable Trust within the purview of S. 2(15) of the Act, secondly, the appellant trust has contra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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