Industrial Infrastructure Development Corporation (Gwalior) M.P. Ltd. Vs CIT (Supreme Court)
The appeal challenged the judgment dated 14.03.2007 of the Madhya Pradesh High Court, which had allowed the Revenue’s appeal, set aside the Income Tax Appellate Tribunal’s order and restored the Commissioner of Income Tax’s (CIT) order cancelling the appellant’s registration under Section 12A of the Income-tax Act, 1961. The appellant, a State Government undertaking engaged in developing industrial growth centres and promoting industrial development in Madhya Pradesh, had sought registration under Section 12A on the ground that it was engaged in activities of public utility falling within Section 2(15) of the Act.
The appellant applied for registration under Section 12A on 10.02.1999 along with an application for condonation of delay. By order dated 13.04.1999, the CIT condoned the delay and granted registration, while stating that the certificate was without prejudice to examination of the exemption claim after filing of returns. Subsequently, on 27.11.2000, the CIT issued a show cause notice proposing cancellation of the registration certificate. After considering the appellant’s reply, the CIT, by order dated 29.04.2002, cancelled the registration. The appellant’s rectification application under Section 154 was rejected on 20.12.2002, the CIT holding that he possessed the power to cancel the registration.
