No retrospective cancellation could be made as neither in the Sec. 12AA(3) nor in Sec. 12AA(4),it has been provided to have a retrospective character or intend.

Last updated: 22 January 2021

Save Share

Quick Summary

The Income Tax Appellate Tribunal has ruled that the cancellation of a trust's registration under Section 12AA of the Income Tax Act cannot be made retrospective. This decision stems from the fact that neither Section 12AA(3) nor Section 12AA(4) of the Act provides for a retrospective application or intention. Therefore, any cancellation would only be effective from the date it is issued.

Court :
ITAT Jaipur

Brief :
The present appeal has been filed by the assessee against the order of the ld. Pr.CIT(Central), Rajasthan, Jaipur dated 22/03/2019 passed U/s 12AA(3) and 12AA(4) of the Income Tax Act, 1961 (in short, the Act). Following grounds have been taken by the assessee:

Citation :
ITA No. 688/JP/2019

IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES “A”, JAIPUR
BEFORE SHRI SANDEEP GOSAIN, JM & SHRI VIKRAM SINGH YADAV, AM

Assessment Year: …………………………
M/s Wholesale Cloth Merchant Association,
New Cloth Market, Kota.
cuke

Vs.

Pr.C.I.T. (Central),
Jaipur (Rajasthan)
PAN No.: AAATW 0127 C
Appellant
Respondent

Assessee by : Shri Siddarth Ranka &
Shri Shravan Kr. Gupta (Advs)
Revenue by : Shri Ambrish Bedi (CIT-DR)

Date of Hearing : 14/10/2020
Date of Pronouncement : 06/01/2021

ORDER

PER: SANDEEP GOSAIN, J.M.

The present appeal has been filed by the assessee against the order of the ld. Pr.CIT(Central), Rajasthan, Jaipur dated 22/03/2019 passed U/s 12AA(3) and 12AA(4) of the Income Tax Act, 1961 (in short, the Act). Following grounds have been taken by the assessee:

“1. That in the facts and in the circumstances of the case and in law, the ld Pr. CIT(Central), Rajasthan, Jaipur has grossly erred in cancelling the registration of the assessee appellant trust under Section 12A of the Act by invoking Section 12AA(4) of the Act w.e.f. 01/04/2013.

2. The appellant craves leave to add, alter, modify or amend any ground on or before the date of hearing.”

3. In the facts and in the circumstances of the case and in law the penalty proceedings initiated u/s 271F, 271(1)(b), 271(1)(c) may kindly be deleted.

4. The petitioner craves the right to add, alter or in any way amend the grounds of appeal at or before the hearing.”

To know more in details find the attachment file

FAQ :

No, the Income Tax Appellate Tribunal has determined that a trust's registration cannot be cancelled retrospectively under Section 12AA of the Income Tax Act, as the relevant sections do not have retrospective character.

The relevant sections are Section 12AA(3) and Section 12AA(4) of the Income Tax Act, 1961.

The case involved an appeal by M/s Wholesale Cloth Merchant Association against the cancellation of its trust registration by the Principal Commissioner of Income Tax (Central), Jaipur.

A cancellation of registration would be effective from the date it is issued, not from a past date, due to the absence of retrospective provisions.