IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील स.ं / ITA No.1130/PUN/2024 M.M. Patel Charitable Trust, Vs. PCIT (Central), Gat No.261, 262/107, Pune Ashwini Medical College, At Post Kumbhari, Tal. South Solapur – 413 006 Maharashtra PAN : AAATM7736M Appellant Respondent Assessee by : Shri Kishor B. Phadke Revenue by : Shri Ajay Kumar Keshari Date of hearing : 09.01.2025 Date of pronouncement : 21.02.2025 आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER :

This appeal at the instance of assessee is directed against the order dated 27.03.2024 passed by PCIT (Central), Pune u/s.12 r.w.s.12AA & 12AB(4) of the Income-tax Act, 1961 (in short ‘the Act’).

2. Assessee has raised following grounds of appeal :

“1. The Learned PCIT (Central) erred in assuming jurisdiction u/s 12A/12AA/12AB of the ITAct, 1961 and proceeding to cancel the registrations u/s 12A/12AA/12AB. Learned PCIT (Central) Pune ought to have appreciated that, 12A/12AA/12AB related jurisdiction, existing with CIT(Exemption) prior to the search, could not be transferred through order u/s 127 of ITA, 1961 by one CIT to another PCIT.

2. The Learned PCIT (Central), Pune erred in law and on facts in not dealing with many precedents of Honourable ITAT holding that, jurisdiction u/s 12A cannot be shifted /transferred through any order u/s 127 of the ITA, 1961.

3. The Learned PCIT-Central Circle, Pune erred in law and on facts in cancelling registration u/s 12A/12AA for the period from 1/4/2019 to

31/3/2021 without any cogent reasons.

4. The registration u/s 12A r.w.s. 12AB for the period from 1/4/2021 onwards is cancelled without issuing show cause notice for the same and without any cogent reasons.

5. The Learned PCIT (Central), Pune erred in law and on facts in holding that, activities of the Appellant are not genuine and funds are deployed for personal benefit of its members. Learned PCIT (Central), Pune erred in keeping heavy reliance on the statements recorded during search, without appreciating fact that the statements were recorded under peculiar circumstances and despite the fact of their retraction thereafter. 6. The Learned PCIT (Central), Pune also erred in law and on facts in holding that retraction affidavits of various persons have no credence and that, these retractions are "planned".

7. The Learned PCIT (Central), Pune also erred in law and on facts in not considering the statement of Mehul Patel recorded during the course of search wherein he has refuted all the allegation against the trust and flatly denied any involve of the trust.

8. The Learned PCIT (Central) also erred ignoring the facts that the assessment proceeding of search and seizer action have not yet reached finality and hence the action of cancellation of registration is a premature action in the absence of any assessment proceeding being concluded.

9. The appellant is engaged in pre and post search period is imparting education by running medical college, running charitable hospital for providing medical relief to patient's and activity are being carried out in accordance with all the conditions subject to which registration has been granted. Learned CIT (Central) action of cancellation of registration is therefore, premature action in the absence of any conclusive decision of fact finding authority.

10. The Learned CIT (Central) has erred in drawing conclusion that the appellant had made specified violation under clause f of explanation below section 12AB(4) of the act in the absence of any order, direction or decree under the relevant act.

11. Appellant craves leave to add/modify /amend/delete all / any of the grounds of appeal.”

3. Facts of the case in brief are that assessee is a Public Charitable Trust running a Medical College and Hospital under the name & style of 'Ashwini Rural Medical College Hospital and Research Centre at Kumbhari, Dist-Solapur. It is registered under Bombay Trust Act, 1950 o