Islamic Academy of Education Vs PCIT (Central) (ITAT Bangalore)
Material Facts
The assessee, a charitable trust engaged in imparting education, was granted registration under Section 12A on 04.06.1992 and subsequently obtained registration under Section 12AB on 23.09.2021 for Assessment Years 2022-23 to 2026-27. A search was conducted on 17.02.2021, during which documents relating to alleged cash collections from students of Yenepoya Dental College and Yenepoya Ayurveda Medical College were seized. The assessee maintained that no cash was collected by it and that concessions granted to students had been misused by two employees, who allegedly collected and misappropriated cash without the management’s knowledge. The Assessing Officer completed assessment for AY 2021-22 under Section 143(3), making an addition of ₹1,31,85,000 alleging violation of Section 13(1)(c), while allowing exemption under Section 11. The assessment order was challenged before the appellate authority and remained pending. Thereafter, the PCIT initiated proceedings under Section 12AB(4) and, by order dated 21.06.2023, cancelled the registrations granted under Sections 12A and 12AB from the Previous Year 2020-21 onwards on the ground of specified violations.
Procedural History
The assessee appealed against the cancellation order passed under Section 12AB(4)(ii). Additional legal grounds challenging the jurisdiction and validity of the cancellation proceedings were admitted by the Tribunal, relying on judicial precedents permitting consideration of pure questions of law.
