TMI Blog2003 (10) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... it is illegally credited to the Corpus account. (iii) Raising of over-drafts from the bank against the security of FDRs tantamounts to misuse of the Corpus fund. (iv) There have been changes in the constitution of the Trust from time to time which were not communication to the Department. (v) The Trust property is being used for business purposes violating the purpose of sections 11 and 12. Also receipts from the business are not being disclosed in the accounts submitted to the Department. (vi) The trust is maintaining temples activities of which are limited to a particular religious community viz. Hindus only and only religious activities are undertaken in these temples. No charitable activities are going on these temples. 3. The assessee trust filed its reply dated30th December, 2002on all the points raised by the CIT. In addition, it challenged the power of the CIT to withdraw the registration granted under section 12A. It was contended that there is no provision for review of the order granting registration under section 12A. This contention was rejected by holding that the authority which can grant the registration can also withdraw it after giving proper opportunity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Co. [1991] 187 ITR 257 (All.) 7. Patel Narshi Thakershi v. Pradyumansinghji Arjunsinghji AIR 1970 SC 1273. Regarding the application of section 21 of GCA, it was contended by him that it is applicable to subordinate legislation. The word "orders" is associated by the words "notifications, rules and bye laws". Therefore, the word "orders" would not include judicial orders. He also drew our attention to the commentaries of Shri G.B. Singh and B.D. Majahan on this subject and the case law mentioned therein. Hence, it was pleaded that provisions of section 21 cannot be invoked for cancelling or withdrawing the orders passed under section 12A of the Act. It was also contended by him that from the tenor of the impugned order, it appears that CIT rescinded/withdrew the earlier order with retrospective effect while no authority has such powers. 5. On the other hand, the learned Sr. DR has submitted that section 12A is only a procedural section and the CIT is required to satisfy himself about the genuineness of the trust and its objects. According to him, the activity of a trust is an ongoing process and, therefore, can always be looked into even after the grant of registration. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of a judicial officer but such a right must be conferred by statute. This is based upon the common sense principle that prima facie a party who has obtained a decision is entitled to keep it unassailed unless the Legislature has indicated the mode by which it can be set aside. A review is practically the hearing of an appeal by the same officer who decided the case. Therefore, the course of decisions in this country has been to the effect that a right to review is not an inherent power: See David Nadar v. Manicka Vachaka Desika Gnuna Sambanda Pandara Sannathi (1910) ILR 33 Mad. 65, Lala Prayag Lal v. Jai Narayan Singh (1895) ILR 22 Cal. 419, Baijnath Ram Goenka v. Nand Kumar Singh (1895) LR 34 Cal. 677 and Anantharaju Shelly v. Appu Hegade (1919) 37 MLJ 162." Further, there is a direct judgment of Hon'ble Supreme Court on this issue. In the of Patel Narshi Thakershi, the Court had to consider whether the Commissioner had inherent power to review the earlier order passed under the provisions of Saurashtra Land Reforms Act, 1951. TheApex Courtruled as under: "The first question that we have to consider is whether Mr. Mankodi had competence to quash the order made by the Saurash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e resorted to the rules of interpretation. In such cases, rule of Noscitur a sociis is applied. As per Black's Dictionary (Sixth Edition page 1060) this rule is stated thus: "It is known from its associates. The meaning of the word is or may be known from the accompanying words. Under the doctrine of Noscitur a sociis, the meaning of questionable or doubtful words or phrases in a statute may be ascertained by reference to the meaning of other words or phrases associated with it." According to Maxwell on interpretation of statutes, this rule is stated as under: "When two or more words which are susceptible of analogous meaning are coupled together, they are understood to be used in their cognate sense and they take their colour from each other, i.e. the more general is restricted to a sense analogous to less general." This rule has been applied by the Hon'ble Supreme Court in various cases. Reference can be made to the judgment of Hon'ble Supreme Court in the case of Pradeep Agarbati v. State of Punjab 109 STC 561 (sic). In this judgment theApex Courtat page 565 observed as under: "Entries in the schedules of sales-tax and excise statute list some articles separately and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of the above discussion, it is held that section 21 of GCA would include only those orders which are in the nature of subordinate legislation and would not include other orders particularly judicial or quasijudicial orders. Consequently, the order of CIT passed under section 12A in 1974 could not be rescinded/withdrawn by the impugned order by virtue of section 21 of GCA. Hence, the impugned order was without jurisdiction. 11. At this stage, it may be mentioned that the Legislature was well aware of the concept of cancellation of an order. This is apparent from the fact that it specifically conferred power of Assessing Officer to cancel the registration under section 186 of the Income-tax Act. So, if the Legislature had intended so, it could have easily conferred similar powers to the CIT under section 12A. In the absence of such enactment, by implication, the CIT has no power to cancel registration granted earlier. The reason is obvious as the Legislature has specifically granted power to deny exemption under section 11 on year to year basis if there is any contravention of the provisions of section 11 or 13. If under given facts of the case, the funds of the trust are b ..... 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