Lala Sher Singh Memorial Jeevan Vigyan Trust Society Vs PCIT (Central)-3 (ITAT Delhi)
ITAT Delhi held that registration granted under section 12A of the Income Tax Act cannot be cancelled with retrospective effect as the concept of ‘specified violations’ u/s. 12AB(4) is effective only from 1st April 2022. Accordingly, order retrospectively cancelling registration quashed.
Facts- The assessee is an educational society duly registered under section 12AA of the Act and enjoying exemption under section 80G of the Act. The present appeal is filed against the order passed by PCIT (Central) on 30-12-2024 under section 12A r.w.s. 12AA and 12AB(4) of the Act by retrospectively cancelling the assessee’s registration earlier granted under section 12AA of the Act.
Conclusion- Held the expression ‘specified violation’ and consequential withdrawal of registration was introduced in the Finance Act, 2022 only with effect from 1.4.2022 and could be made applicable only from Assessment Year 2023-24 and onwards and not retrospectively. This view is also clarified by the CBDT Circular No. 23/2022 dated 15.11.2022 vide para 9.3.3. of the Circular. Thus, we hold that the Learned PCIT(Central) was not having jurisdiction to pass the impugned order under section 12AB(4) of the Act cancelling the registration of assessee society and also with retrospective effect. Accordingly, the impugned order of Learned PCIT(Central) is hereby quashed. The grounds raised by the assessee are allowed.
