Sushila Devi Centre for Professional Studies and Research Vs PCIT (Central) (ITAT Dehradun)
PCIT (Central) Had No Jurisdiction to Cancel 12A/12AB Registration without sec 120 order– ITAT Quashes Retrospective Cancellation
Assessee, an educational charitable society registered u/s 12A since 2004 (renewed u/s 12AB up to AY 2026-27), was subjected to search. Thereafter, PCIT (Central), Kanpur cancelled the registration retrospectively from AY 2014-15 to 2024-25, alleging violation of section 11/12/13.
Key Legal Issue:
Whether PCIT (Central) had jurisdiction to cancel registration u/s 12AB(4), or whether only CIT(Exemption)—the authority notified by CBDT under section 120—could exercise such power.
Assessee’s Argument:
- CBDT Notification No. 53/2014 vests jurisdiction for exemption/registration matters ONLY with CIT(Exemption), Lucknow, covering UP & Uttarakhand.
- Section 127 order only transfers assessment jurisdiction, not registration jurisdiction.
- PCIT(Central) cannot assume CIT(E)’s powers.
- Section 12AB(4) & “specified violation” provisions were introduced only from 01.04.2022, thus cannot be applied retrospectively to AYs 2014-15 to 2021-22.
- Multiple ITAT decisions (Aggarwal Vidya Pracharni Sabha, Pacific Academy, Wholesale Cloth Merchant Association, Lakhmi Chand Charitable Society, etc.) already held that PCIT(Central) has no power to cancel 12A registration.
ITAT’s Findings:
- CBDT has specially assigned registration & cancellation powers to CIT(Exemption) via section 120
- Section 127 transfer only shifts AO jurisdiction, NOT the jurisdiction of CIT(Exemption).
- PCIT(Central) is not competent authority u/s 12AB to cancel registration.
- Identical issue already decided in favour of trusts in several ITAT decisions (Delhi, Jodhpur, Jaipur benches).
- Therefore, the entire order of cancellation is without jurisdiction and void ab initio.
- Since relief granted on jurisdictional ground, all other grounds on merits became academic.
Result:
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