Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Sri Vidyaranya Seva Sangha Versus Commissioner of Income-tax

Registration granted u/s 12A cancelled - whether the CIT is empowered even w.e.f. 01/06/2010 to withdraw registration of trust earlier registered under the provisions of sec.12A of the Act with retrospective effect? - Held that:- It is not the case of the assessee-trust that the conditions specified in sub-sec.(3) of sec.12AA were not present in the present case even from 01/04/2004 till date of the impugned order. As held by us in the foregoing paragraph, the appellant trust has not been carryi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Accountant Member For the Appellant : Shri G.Venkatesh, Advocate For the Respondent : Shri Sanjay Kumar, CIT(DR) ORDER Per Inturi Rama Rao, AM This is an appeal filed by the assessee-trust directed against the order of the Commissioner of Income-tax, Hubli, passed u/s 12AA(3) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] dated 25/03/2014. 2. The assessee-trust raised the following grounds of appeal: 1. The Order of the learned Commissioner of Income-tax, B .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f registration granted 12A has to always be prospectively and consequently the order passed is bad in law and requires to be cancelled. b. The learned CIT was not justified in cancelling the registration with effect from 01/04/2004 on account of the Show Cause Notice dated 06/03/20 14 and consequently the order is bad in law. c. Without further prejudice, the Show Cause Notice does not indicate that it is proposed to be retrospectively withdrawn and consequently passing a order on an issue when .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ds on applicability of 12 AA(3) of the Act: a. Without prejudice the learned CIT failed to appreciate that the section 12 AA(3) itself was inserted w.e.f. 01/10/2004 and cancelling the registration with retrospective effect from 01/04/2004 amounts to providing unintended retrospective effect of the provision which is not in accordance with the legislative intention on the facts and circumstances of the case. b. The learned CIT erred in law as unintended retrospective effect cannot be given unles .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ase. b. The learned CIT has not given any finding on the issue of activities are not genuine nor has the trust not being carried in accordance with the objects of the trust. In the absence of these two conditions precedent the CIT was precluded from exercising his powers under 12AA(3) of the Act on the facts and circumstances of the case. c. The learned CIT erred in holding that the Appellant is not carrying on the activity of running educational institution is being run on the facts and circums .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the appeal may be allowed in the interest of Justice and equity 3. Briefly, facts of the case are that the assessee is a society registered under the Karnataka Societies Registration Act, 1960 on 17/04/1984. The society was registered under the provisions of sec.12A of the Act on 08/06/1991 vide Registration No.718/121/90/CIT-II. The assessee-society was also granted recognition under the provisions of section 80G of the Act. It was stated that the society was formed for the purpose of carrying .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

bli initiated proceedings u/s 12A(3) to cancel registration granted u/s 12A and show cause notice was served upon the assessee-society vide letter dated 6/3/2014 for the following reasons: i. The society was formed only for the benefit of Brahmin community which violates the provisions of sub-sec.(3) of sec.13 of the Act. ii. The society is not carrying on any activities towards objects of the trust. iii. There was no element of charity running old-age home as the society was collecting deposits .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he CIT, after considering the submissions held that the activity of the assessee-society was not genuine since no activities have been carried on for long time and therefore, cancelled the registration granted u/s 12A w.e.f. 01/04/2004 vide impugned order. 4. Being aggrieved, assessee-society is before us in the present appeal. 4.1 Learned counsel for the assessee submitted that the assessee-society has been carrying on the object for which the society was set up. The assessee-society also carri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ntal Representative relied on the orders of the CIT. 5. We heard rival submissions and perused material on record. The issue involved in the present appeal is about legality of the order passed by the CIT under the provisions of subsec.( 3) of 12AA of the Act. The provisions of sub-sec.(3) of sec.12AA of the Act empower the CIT to cancel registration granted under clause (b) of sub-sec.(1) of sec.12A of the Act, where the CIT is satisfied that the activities of the trust or institution are not g .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ties for which the trust was set up, it can be said that the condition of genuineness of the activities is not satisfied. In the present case, assessee-society not carried out any activity since 2001. The fact that school building was given on lease to another society for the purpose of running school does not amount to carrying on the activities of trust. It is neither the case of the assessee-society that leasing of building is one of the activities for which the society was set up. It is also .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

/s 12A of the Act. However, we note that power of cancellation of registration obtained u/s 12A came t be incorporated by way of amendment introduced by the Finance Act, 2010 w.e.f. 01/06/2010. Therefore, w.e.f. 01/06/2010, power vests with the CIT even to cancel registration granted under any clauses of sub-sec.(1) of sec.12A. Now, the issue is whether the CIT is empowered even w.e.f. 01/06/2010 to withdraw registration of trust earlier registered under the provisions of sec.12A of the Act with .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er, subsequently by the amendment introduced by the Finance Act, 2010 w.e.f. 01/06/2010, power to cancel registration registered under sec.12A was conferred. This demonstrates the intention of the Parliament that the CIT is empowered to cancel registration with retrospect effect subject to condition specified in sub-sec.(3) of sec.12AA of the Act. If this is not the intention of the Parliament there was no need to specifically provide that the CIT is empowered to cancel registration once granted .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

registration had ceased to operate after insertion of provisions of section 12AA w.e.f. 1.4.1997. Had the intention of the Parliament been not to confer the power of withdrawal of registration with retrospective effect, there was no need of amendment by Finance Act, 2010. Therefore, the purpose of the amendment is to confer on the Commissioner under sub-section (3) of section 12AA the power of withdrawing the registration once granted u/s. 12A or 12AA with retrospective effect. When interpreting .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e or sterile. In that view of the matter, the court should not adopt a construction which would upset or even impair the purpose in introducing a particular provision in the statute [Calcutta Jute Manufacturing Co. v. CTO, (1997) 106 STC 433, 439 (SC)]. Therefore, we hold that the CIT is very much empowered to cancel registration of the trust once registered u/s 12A of the Act with retrospective effect. The Hon ble Bombay High Court in the case of Sinhagad Technical Education Society vs. CIT (20 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Article: MISTAKES IN DRAFTING

Forum: Duty Drawback- Urgent

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Forum: GST Invoice

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Circular: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg.

News: GST implementation smoother than expected: Jaitley

News: Blockage of Working Capital of Exporters

News: Clarification about Transition Credit

Forum: GST - TRAN1 - filed - Data uploaded with Remarks Processed with Error - Not coming in Electronic credit ledger - need suggession guidance

Forum: 3B mistake

Forum: Input tax credit

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Due date of Filing TRAN-1

Highlight: Diversion of income at source - Joint venture agreement - 97% of the receipt transfer to M/s TRG Industries (P) Ltd. - scope of the agreement - it is diversion by overriding title - not taxable in the hands of assessee - HC

Highlight: Expenditure on eligible projects or schemes u/s 35AC - After 01.04.2017 the legislature desired to withdraw such deduction. - The Union legislature was competent to introduce such amendment - HC

Highlight: Transfer of trading assets at cost price, the profit component also stood transferred to the outgoing Directors, which otherwise belonged to the Company - the fact that AO has made the addition in the hands of the Directors would not make any difference - additions confirmed - HC

Highlight: The interest u/s 234B of the Act cannot go beyond the stage of S.245D(I) before the Settlement Commission - HC

Highlight: Galvanized iron pipe is a different commercial commodity than a iron pipe, therefore the activity of galvanization in our considered opinion amounts to manufacture - Deduction u/s 80-IB allowed - HC

Highlight: Penalty u/s 271C - non deduction of TDS on interest paid to sister concerns in terms of Section 194A - Levy of penalty confirmed - HC

Highlight: Disallowance of interest - reference to section 179 - The legislature has also recognised, that the doctrine of lifting of veil in the matter of tax dues is to be applied to prevent fraud etc. and not where the company has suffered despite its normal bona fide function. - HC

News: RBI Reference Rate for US $

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-UTT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017- UTT(R) to reduce CGST rate on specified supplies of Works Contract Services

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer

Notification: Exempts inter-state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 09/2017-IT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version