Registration U/s. 12AA(3) cannot be made before date of introduction of Sec. 12AA(3)

By Editor Income Tax Judiciary November 26, 2017

TaxGuru Citation: 2017 taxguru.in 1063
Case Name: U.P. Distillers Association Vs. Commissioner Of Income Tax (Delhi High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Delhi High Court

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U.P. Distillers Association Vs. CIT (Delhi High Court)

In this case Assessee urged that, in any event, the cancellation could not have been from inception but only from the date Parliament amended Section 12AA, i.e. from 01.10.2004.

HC held that that the cancellation of registration in this case could have related back only from the date of introduction of Section 12AA(3) i.e. with effect from 10.2014 and not earlier.

Full Text of the High Court Judgment / Order is as follows:-

1. The Assessee is aggrieved by an order of the Income-Tax Appellate Tribunal (ITAT) upholding the C.I.T’s determination that it was dis entitled to registration under Section 12AA as a Charitable Trust under the Income-Tax Act, 1961 (hereinafter referred to as the Act).2. The facts are that a search took place on 14.02.2006 in the premises of one Mr R.K.Miglani – who was the Secretary General of the UPDA/Assessee.

3. During the course of search, the statement of Shri Miglani was recorded under Section 132(4) of the Act. The statement was retracted but the retraction letter was filed after a considerable period of time, i.e., after two years on 03.03.2008.

4. In the meanwhile, the CIT cancelled the registration under Section 12AA (3), initially granted to the assessee, after considering the seized material and statements. That order was upheld by the ITAT.