Cancellation of charitable registration under section 12AB(4) cannot be retrospective prior to 1.4.2022 as provision prospective; impugned order quashed, registration restored.

ORDER

PER Ms. MADHUMITA ROY, JM:

The instant appeal, filed by the assessee, is directed against the order dated 30.12.2024 passed by the Principal Commissioner of Income-tax (Central)-3, Delhi, under Section 12A r.w.s. 12AA & 12AB(4) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), for the Assessment Year 2013-14.

2. Grounds of appeal raised by the assessee read as under:

“1. That the learned Pr. Commissioner of Income Tax(Central)-3, Delhi has erred in law and on facts in withdrawn registration U/s 12A r.w.s. 12AA and 12AB of Income Tax Act, 1961 retrospectively from the F.Y. 2012-13 i.e. relevant to A.Y. 2013-14 and further year is bad in eye of the law. As stated in judgment of hon'ble Supreme Court of India in case of Principal Commissioner of Income-tax (Central) V. Centre For Policy Research, SLP (CIVIL) DIARY NO(S). 44698 OF 2023, JANUARY 5, 2024.

2. Since the assessment for the A.Y. 2013-14 is time barred as held by the jurisdictional High Court of Delhi in the case of Sheetal International (P.) Ltd. V. Chief commissioner of Income 2 Tax W.P.(C) 12632 of 2024 CM APPLS. 52458 and 52459 of 2024, dated November 4, 2024 and accordingly cancellation of exemption u/s 12A r.w.s. 12AA & 12AB (4) of the Income Tax Act, 1961 from F.Y. 2012-13 is also time barred.

3. That the order of the learned PCIT (Central)-3, Delhi is erroneous in law and is against the principles of natural justice by not giving proper show cause notice and without giving proper opportunity to being heard.

4. That the learned Pr. Commissioner of Income Tax (Central)-3, Delhi has erred in law and on facts by not allowing Cross Examination to appellant of all documents/records etc on which PCIT(Central)-3, Delhi heavily relied upon. As per law settled 4 Judgment of Hon'ble Supreme Court of India in case of Commissioner of Income-Tax - Central V. Sunita Dhadda, Special Leave Petition (Civil) Diary No(S), 9432 of 2018, March 28, 2018. it was held that not allow assessee to cross examine there being violation of principle of natural justice.

5. That the learned Pr. Commissioner of Income Tax(Central)-3, Delhi has erred in law and on facts by heavily relied on documents/records seized from 3rd party data as per settled law without any Corroborative evidence.

6. That the learned Pr. Commissioner of Income Tax (Central) -3. Delhi has erred in law and on facts by conclude that the activities of the appellant are not genuine or are not being carried out in accordance with its stated objects.

7. That the order of the learned PCIT(Central)-3, Delhi is bad in eye of the law as the PCIT(Central)-3, Delhi has no jurisdiction over continuing the exemption/revocation of exemption/cancellation of exemption U/s 12A r.w.s. 12AA & 12AB(4) of 7 the Income Tax Act, 1961 still lies with the Principal Chief Commissioner of Income Tax (Exemption) as per section 127 r.w.s section 120 of Income Tax Act, 1961 and without sharing any satisfaction note to the assessee in term of sub section 3 of the section 143 of the Act.

8. That your appellant trust craves leave to add, to amend, alter, 8 or withdraw any or more grounds of appeal on or before the hearing of appeal."

3. The facts of the case, in brief, are that the assessee Little Pearl Charitable Society is a Society, running the following schools under it:

a) Mother's Pride School Kalyan Vihar, New Delhi

b) Presidium School, Kalyan Vihar, New Delhi

4. The Little Pearl Charitable Society is an educational Society which was registered on 29.01.1996. Order of registration of Society under Section 12A read with section 12AA of the Act was passed by