Aggarwal Vidya Pracharni Sabha Vs PCIT (ITAT Delhi)
Material Facts: The assessee, a society registered under the Societies Registration Act and granted registration under Section 12AA on 27.09.2002, was subjected to a search under Section 132 on 19.02.2020 along with entities of the Dev Wine Group. The Revenue alleged that funds of the society had been diverted to entities controlled by its Chairman and misappropriated for personal benefit. Following centralisation of the case under Section 127 on 26.10.2020, assessments for AYs 2014-15 to 2020-21 were completed under Section 153A. Based on a proposal received from the Assessing Officer, the PCIT (Central), Gurgaon passed an order dated 29.03.2023 under Section 12AB(4) cancelling the registration granted under Section 12AA retrospectively from 01.04.2014. The assessee challenged the order before the Tribunal and also raised an additional ground questioning the jurisdiction of the PCIT (Central), Gurgaon.
Procedural History: The appeal was filed against the order dated 29.03.2023 passed under Section 12AB(4). The assessee challenged the retrospective cancellation of registration and also raised an additional jurisdictional ground contending that only the CIT (Exemptions), Chandigarh was competent to exercise powers relating to cancellation of registration.
Legal Issues
The Tribunal considered:
- Whether the PCIT (Central), Gurgaon had jurisdiction to cancel registration under Section 12AB(4).
- Whether the transfer order under Section 127 conferred jurisdiction for cancellation of registration.
- Whether cancellation of registration granted under Section 12AA with retrospective effect from 01.04.2014 was sustainable.
- Whether proceedings under Section 12AB(4) had been initiated in accordance with the statutory procedure.
Relevant Statutory Provisions
