Case Law Details
Aggarwal Vidya Pracharni Sabha Vs PCIT, Central (ITAT Delhi)
Introduction: The recent ruling by the Delhi ITAT in the case of Aggarwal Vidya Pracharni Sabha vs. PCIT, Central has brought to light significant issues regarding the jurisdictional authority in registration cancellation under Section 12AB(4). The order, dated 08.01.2024, has declared the cancellation by PCIT Central as without jurisdiction.
Detailed Analysis: The ITAT’s extensive analysis underscores the absence of specific references to Section 12AB in the 2014 Notification and the lack of subsequent authorization by Circular or Notification. The conclusion is drawn that when the order was passed under Section 127 of the Act on 26.10.2020, CIT(E), Chandigarh, did not possess the authority to transfer jurisdiction under Section 12AB, which became effective from 01.04.2021.
The ruling further dissects the powers of PCIT, Gurgaon, emphasizing that the ‘case’ in Section 127 cannot extend to the special powers of CIT(E), Chandigarh. The assumption of jurisdiction based on the order dated 26.10.2020 is deemed illegal, rendering the impugned order liable to be quashed.
The assessment completed in September 2021 is highlighted, emphasizing that the concerned AO had no grounds to invoke ‘reference’ powers under the second proviso to sub-section (3) of Section 143. The attempt by PCIT, Gurgaon, to invoke powers under clause (a) of sub-section (4) of Section 12AB is scrutinized and deemed inappropriate.
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