Withdrawal of registration of trust cannot be retrospective: ITAT Mumbai
Heart Foundation of India v. CIT (Mum.)(Trib.) (ITA No. 1524/Mum/2023 dt. 27-7-2023)
- The asseessee is a Charitable Trust which was set up vide trust deed dated April 21 , 1988 . The Trust was granted registration under section 12A of the Act vide certificate dated July 21, 1989.
- One of the objects of the Trust is to hold seminars in the field of medical education. Due to search on Pharmaceutical companies which had given donation to the assessee the survey was conducted on the assessee .
- In the course of the assessment proceedings the Assessing Officer made reference to the PCIT (Central ) to cancel the registration . On the basis of the reference the PCIT (Central ) cancelled the registration retrospectively from the Assessment year 2016-17.
- In the appeal before the Tribunal the assesee contended that, the PCIT (Central) is not prescribed authority hence has no jurisdiction to cancel the Registration of Trust.
- The assessee also contended that application was not made for a fresh registration under section 12AB of the Act and hence the registration could only be cancelled under section 12AA(3) of the Act, the Registration of the Trust cannot be cancelled retrospectively.
ITAT Mumbai held as below:
- The PCIT (Central) has no jurisdiction to cancel the registration and withdrawal of registration cannot be done retrospectively.
- Accordingly, the retrospective cancellation of registration was quashed. Alternative contentions have become academic and hence not dealt with.
The copy of the order is as under: