The assessee trust's registration u/s 12AA was cancelled ...

Trust registration cancellation saga: CIT overreach? Retrospective application of new rules flawed.

September 6, 2024

Case Laws Income Tax AT

The assessee trust's registration u/s 12AA was cancelled retrospectively by the CIT(E) u/s 12AB(4)(b)(i) on grounds of commercial activities, diversion of funds to related parties, and violation of Section 13(3). The key points are: The ITAT held the retrospective cancellation was incorrect as the specified violations u/s 12AB(4) were introduced prospectively from 01.04.2022 and cannot apply to earlier years. The revenue cannot re-agitate issues like commercial activities which were already decided in the assessee's favor. Cancellation cannot operate retrospectively in absence of specific provision. The CIT(E) initiated proceedings based on a reference from the AO, but no fresh reference was made after registration was granted on 23.09.2021 as mandated by amended Section 12AB(4). The show cause notice did not cover the specified violations invoked in the final order, violating principles of natural justice. Cancellation of registration solely on grounds of specified violations for prior years is incorrect.

View Source

← Previous Next →

The assessee trust's registration u/s 12AA was cancelled ...

Trust registration cancellation saga: CIT overreach? Retrospective application of new rules flawed.

September 6, 2024

Case Laws Income Tax AT

You may also like:

Cancellation of GST Registration - Legal Validity of Retrospective Cancellation - The court acknowledged the lack of clarity in the show cause notice and the absence of...

Cancellation of GST registration of the petitioner with retrospective effect - vague SCN and impugned order - The court noted that the petitioner's response to the show...

Cancellation of GST registration of the petitioner with retrospective effect - The High court observed that cancellation with retrospective effect should be based on...

Cancellation of GST registration of the petitioner with retrospective effect - Highlighting deficiencies in the show cause notice and the lack of reasons for the...

Retrospective cancellation of GST registration due to failure to file returns timely - impugned order does not set out any reason except referring to impugned show cause...

Cancellation of GST registration of petitioner - there is no reason why the petitioner’s cancellation was effected with retrospective effect. It is also clear that the...

Cancellation of GST registration of the Petitioner with retrospective effect - The High court noted that the Show Cause Notice and the order of cancellation did not...

The Delhi High Court addressed the issue of the cancellation of GST registration of the petitioner with retrospective effect. The court found that the show cause notice...

Cancellation of GST registration of the petitioner with retrospective effect - The High Court held that, Records clearly demonstrate that the Petitioner had submitted an...

Cancellation of registration u/s. 12AA(3) - amendment in trust deed - Proof of change of object charitable - CIT(E) can cancel the registration only in situations,...

Cancellation of GST registration of petitioner with retrospective effect from 01.07.2017 - Assessee filed the application for cancellation of registration but failed to...

Rejection of the petitioner's application for revocation of the cancellation order of GST registration. The key points are: the show cause notice (SCN) did not propose...

The respondent failed to process the petitioner's application for cancellation of GST registration, citing reasons such as the requirement to pay due tax and penalties,...

Trust's application for registration u/s 12AA cannot be denied solely on ground that it is yet to commence charitable activities. At initial stage, authorities must...

Retrospective cancellation of GST registration without assigning reasons violates principles of natural justice. The impugned order lacked reasoning for cancelling...

Quick Updates: