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TMI Blog2012 (2) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... he registration granted to the assessee u/s 12A(a) in the year 2000. This power came to be incorporated by way of amendment introduced by the Finance Act, 2010, with effect from June 1, 2010. Thus, the impugned order of ld. C.I.T. vacated and as a corollary thereto, the registration granted to the assessee-trust u/s. 12A of the Act stands restored. Decision in the case of DIT (EXEMPTIONS) VERSUS MOOL CHAND KHAIRATI RAM TRUST [ 2011 (4) TMI 563 - DELHI HIGH COURT] , relied upon. Decision in favour of Assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... mption), Kolkata and certificate for exemption u/s. 80G(5)(vi) of the Act was also issued upto assessment year 2009-10. The ld. C.I.T. passed order dated 31/12/2008 u/s. 12AA(3) of the Act canceling the registration granted u/s. 12A of the Act. It is pertinent to mention here that the present appeal is the second innings of appeal before the Tribunal, because the Tribunal vide order dated 19/08/2009 restored the matter to ld. C.I.T. for fresh adjudication as the assessee was deprived of sufficient opportunity to file proper reply. In the second round, the ld. C.I.T. after narrating the facts and circumstances of the case observed that the amendment in sec. 12AA of the Act by the Finance Act, 2010 w.e.f. 01/6/2010 was clarificatory in its na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on 30/12/2008 to cancel registration obtained u/s. 12A was totally wrong and uncalled for and as such the order canceling registration granted to the assessee-trust u/s. 12A of the Act was liable to be vacated. In support of his contentions, the learned counsel relied on the following decisions, copies of which are placed in the paper book :- DIT (Exemp) vs. Mool Chand Khairati Ram Trust [(2011) 339 ITR 622 (Del)] Bharati Vidyapeeth vs. ITO [(2008) 119 TTJ 261 (Pune)] Ajit Education Trust vs. CIT [(2010) 46 DTR 482 (Ahd-Trib)] 4. The ld. Departmental Representative, on the other hand, relied on the order of ld. C.I.T. and submitted that the power of cancellation of registration is inherent and flows from the authority of granting r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sequently the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing canceling the registration of such trust or institution." A plain reading of the above provision shows that sec. 12AA of the Act empowers the ld. C.I.T. to grant the registration in those cases where the assessee applies for such registration u/s. 12AA(1) of the Act. On the other hand, sec. 12AA(1) of the Act reads as under :- "12AA.(1) The Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) [or clause (aa) of sub-section (1)] of section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder clause (b) of sub0section (1). Further, cancellation under sub-section (3) was also provided where the registration was obtained at any time under section 12A (may be under clause (a) or clause (aa) of sub-section (1) of section 12A). But this power of cancellation of registration obtained under section 12A came to be incorporated by way of amendment introduced by the Finance Act, 2010, with effect from June 1, 2010. That being the interpretation of sub-section (3), it is amply clear that the power to cancel the registration once granted was only confined to the registration granted under clause (b) of sub-section (1) of section 12AA till before June 1, 2010. Of course, now with effect from June 1, 2010, the power vests with the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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