Shishukunj Education Society Vs PCIT (Central) (ITAT Indore)
ITAT Indore held that retrospective cancellation of registration granted under section 10(23C)(vi) of the Income Tax Act invalid. Amendment brought in statute via Finance Act, 2022 is prospectively effective from 01.04.2022.
Facts- The assessee is a society engaged in charitable purpose of imparting education. It is registered under Madhya Pradesh Societies Registration Act, 1973 w.e.f. 10.12.2004. It was also granted approval u/s 10(23C)(vi) of the Act by the Chief Commissioner of Income-tax from AY 2008-09 onwards and such approval was continuing year after year. However, the approval so granted was cancelled vide order dated 14.12.2018 by CIT(Exemption) w.e.f. AY 2014-15 but on appeal by assessee, the ITAT, Indore Bench reinstated approval vide order dated 07.08.2019 in pursuance of which the approval was re-stored by CIT(E) through order dated 19.03.2020. This approval/restoration of approval enabled the assessee to claim exemption u/s 10(23C)(vi) of the Act from AY 2008-09 onwards.
During pendency of such assessment/re-assessment proceedings, a reference was forwarded by Range Head/AO vide letters dated 19.02.2024/16.02.2024 under 2nd proviso to section 143(3) to PCIT(Central) informing that the assessee-society is involved in certain irregularities and has violated the terms and conditions of section 10(23C)(vi) and therefore its approval u/s 10(23C)(vi) is liable to be cancelled.
