TMI Blog2016 (1) TMI 1302X X X X Extracts X X X X X X X X Extracts X X X X ..... cific powers have been granted to the Principal Commissioner or the Commissioner in this regard under section 12AA(3) of the Act. The Income Tax Act is a self contained code, whereby specific provisions have been provided for specific conditions under different Chapters and under different sections, sub-sections and clauses, etc. An authority can exercise its power to do any act under the specific provision provided under the Act and not from elsewhere. To cancel the registration, the Commissioner of Income Tax has to assume the power from the provisions of section 12AA(3) of the Act and not from section 263 of the Act, which is basically a power given to the Commissioner of Income Tax to review an erroneous order made by an Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chandigarh, stating that since the assessee has not complied with the provisions of section 11(2) of the Act, the order of the Assessing Officer, in his opinion, was erroneous as well as prejudicial to the interest of revenue. Further, the assessee was also show caused as to why his registration under section 12A of the Act should not be withdrawn. 3. After considering the reply of the assessee, the learned Commissioner of Income Tax (Exemptions) vide his order under section 263 of the Act dated 19.3.2015 cancelled the order of the Assessing Officer made under section 143(3) of the Act dated 26.12.2012, holding the same to be erroneous and prejudicial to the interest of revenue. Further, in the same order passed under section 263 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 263 of the Act on the cancellation of registration granted to the assessee under section 12A of the Act. The submission of the learned counsel for the assessee was that section 263 of the Act empowers revision of an order passed by the Assessing Officer who is subordinate to the Commissioner of Income Tax, whereas the registration under section 12AA is granted by the Commissioner of Income Tax himself, therefore, is not covered by revisional provision of section 263 of the Act, but would tantamount to review of his own order. The grant of exemption under section 11 of the Act is different from the grant of registration under section 12A of the Act as the former falls within the purview of the Assessing Officer. Reliance was placed on the ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cancelling the assessment and directing a fresh assessment. 9. From the perusal of the above, it is clear that the calling of record of any proceedings under this Act is a duty case on the Commissioner of Income Tax, whereby he has to form an opinion whether the order passed out of that record is erroneous and prejudicial to the interest of revenue. The order which is to be considered by the Commissioner of Income Tax as erroneous and prejudicial to the interest of the revenue is referred to be as an order passed therein by the Assessing Officer. Our emphasis is on the words order passed therein by the Assessing Officer , whereby it becomes clear that the Commissioner of Income Tax can invoke jurisdiction under section 263 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Income Tax has no jurisdiction under section 263 of the Act to cancel the registration earlier granted to the assessee under section 12AA of the Act. 12. There is another aspect to the present case, under Chapter-III, section 12AA, the procedure for registration is provided. In sub-sections (1) and (2) of the Act, the procedure for registration is given, while in sub sections (3) and (4) subject to certain conditions, the power is conferred upon the Principal Commissioner or the Commissioner to cancel the registration under section 12A or under section 12AA of the Act to an assessee granted earlier. From this, it emerges that specific powers have been granted to these officers in this regard under section 12AA(3) of the Act. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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