CHARITABLE TRUST REGISTRATION CANNOT BE REVOKED RETROSPECTIVELY.

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CHARITABLE TRUST REGISTRATION CANNOT BE REVOKED RETROSPECTIVELY.

30/06/2023

CHARITABLE TRUST REGISTRATION CANNOT BE REVOKED RETROSPECTIVELY

It is a charitable trust which was established under the trust deed of April 21, 1988. The trust was granted registration under Section 12A of the Act through a certificate dated July 21, 1989.

One of the objectives of the Trust is to organize seminars in the field of medical education. The survey was conducted on the taxpayer due to searches on pharmaceutical companies that had donated to the taxpayer.
During the evaluation proceedings, the assessing officer referred to the PCIT (Central) for cancellation of registration. Based on the context, PCIT (Central) retrospectively cancelled the registration from the assessment year 2016-17.

In the appeal before the tribunal, the petitioner argued that, since PCIT (Central) is not the prescribed authority, there is no jurisdiction to cancel the registration of the trust.

The taxpayer also argued that while an application for new registration was not made under Section 12AB of the Act and hence the registration can only be cancelled under Section 12AA (3) of the Act, the registration of the trust cannot be cancelled retrospectively.

PCIT (Central) has no jurisdiction to cancel the registration and withdrawal of registration cannot be done retrospectively.

INCOME TAX APPELLATE TRIBUNAL MUMBAI

HEART FOUNDATION OF INDIA V/S COMMISSIONER OF INCOME TAX

VIKAS AWASTHY J M AND MS. PADMAVATHY S. A M

I.T.A. NO.1524/MUM/2023

27.07.2023

READ JUDGEMENT HERE