Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (11) TMI 840 - AT - Income TaxFresh registration of trust u/s 12A(1) w.e.f. 1.4.2021 - Power of CIT(E) to impose conditions - registration u/s 12AB(1)(a) and under clause (iii) of the second proviso to Section 80G(5) denied - conditions stipulated in Form 10AC not satisfied - action of Ld. CIT(E) to have prescribed conditions for grant of registration u/s 12AB - power of CIT to impose additional conditions while passing the order - objection of the Revenue that this Tribunal is not empowered to look into the vires of the conditions stipulated in Form 10AC notified in terms of Rule 17A of the Rules - HELD THAT:- As held by the Hon’ble Supreme Court (Constitutional Bench) in the case of L Chandra Kumar Rao vs. UOI [1997 (3) TMI 90 - SUPREME COURT] that even though this Tribunal is indeed a creature of the Statute, it is empowered to test the vires of subordinate legislation and rules. We note that there is no mention of conferring of power upon the Ld. CIT to stipulate conditions for granting registration in Rule 17A (already reproduced above) of the Rules. Hence, the contention of the Ld. CITDR, that the conditions stipulated at Sl No. 10 of Form 10AC had been placed and impliedly approved by the Parliament cannot be accepted. Even otherwise, if the said Form was indeed placed before the parliament, in view of case of Hukum Chand Vs UOI [1972 (8) TMI 130 - SUPREME COURT] it cannot stipulate anything more than what is contained in the extant section/ provision of law as enacted by the Legislature [ie. in this case, Section 12AB of the Act]. We thus agree with the submissions of the Ld. Sr. counsel that the Ld. CIT(E) could not have been empowered to stipulate conditions while granting registration in Form 10AC, which is otherwise not expressly provided in provisions contained in Section 12AB of the Act. As relying on SAIFEE BURHANI UPLIFTMENT TRUST MUFADDAL SHOPPING ARCADE [2022 (5) TMI 768 - ITAT MUMBAI] CIT(E) could not have stipulated conditions on his own (other than what is stipulated in law) while granting registration under section 12AB of the Act as the scheme of the law does not visualize these conditions being part of granting of registration to charitable trusts. Accordingly, the grounds raised in the appeal by the assessee stands allowed. CIT(E) did not enjoy the power to prescribe/impose any conditions on his own (other than what is stipulated in law) while granting the registration u/s 12AB we similarly hold that the Ld. CIT(E) lacked jurisdiction to impose any conditions on his (other than what is stipulated in law) while granting the approval u/s 80G of the Act as well. Accordingly, this appeal also stands allowed.
|