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TMI Blog2018 (2) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench of the High Court allowed the appeal filed by the respondent and set aside the order passed by the ITAT and restored the order of the Commissioner of Income Tax. 2. The question involved in the appeal lies in a narrow compass. Few facts, however, need mention to appreciate the same. 3. The appellant is a limited company registered under the Companies Act. It is a State Government Undertaking which is established with a view to develop and assist the State in the development of industrial growth centers/areas, to promote, encourage and assist the establishment growth and development of industries in the State of M.P. The appellant is an "assesse" under the Income Tax Act, 1961 (hereinafter referred to as "the Act"). 4. On 10.02.199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 02, the CIT did not find any substance in the stand taken by the appellant in their reply and accordingly cancelled/withdrawn the certificate issued to the appellant. 8. The appellant felt aggrieved and filed rectification application under Section 154 of the Act before the CIT on 04.07.2002 contending therein that the order of the CIT dated 29.04.2002 cancelling/withdrawing the registration certificate contains an error apparent and, therefore, it is required to be rectified or/and recalled. It was contended that once the CIT grants the registration certificate under Section 12A, he has no power to cancel/recall the certificate granted to the Assessee. 9. On 20.12.2002, the CIT rejected the application filed by the appellant for rectific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee felt aggrieved and filed this appeal by way of special leave before this Court. 14. None appeared for the appellant (assessee). Mr. Radhakrishan, learned Counsel appeared for the respondent (Revenue). 15. Having heard the learned counsel for the Revenue and on perusal of the record of the case, we are inclined to allow the appeal and while setting aside the impugned order, restore the order of the ITAT. 16. The main questions, that arise for consideration in this appeal, are four: 17. First, whether the CIT has express power to cancel/withdraw/recall the registration certificate once granted by him under Section 12A of the Act and, if so, under which provision of the Act? 18. Second, when the CIT grants registration certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions exercisable by the CIT under Section 12A are neither legislative and nor executive but as mentioned above they are essentially quasi judicial in nature. 23. Third, an order of the CIT passed under Section 12A does not fall in the category of "orders" mentioned in Section 21 of the General Clauses Act. The expression "order" employed in Section 21 would show that such "order" must be in the nature of a "notification", "rules" and "bye laws" etc. ( see - Indian National Congress(I) vs. Institute of Social Welfare & Ors., 2002 (5) SCC 685). 24. In other words, the order, which can be modified or rescinded by applying Section 21, has to be either executive or legislative in nature whereas the order, which the CIT is required to pass und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose for extending the time for completing the enquiry. (See- State of Madhya Pradesh vs. Ajay Singh, AIR 1993 SC 825). It is also held while construing the provisions of Citizenship Act that the certificate of registration of citizenship issued under Section 5(1)C of the Citizenship Act cannot be cancelled by the authority granting the registration by recourse to Section 21 of the General Clauses Act. (See- Ghaurul Hasan vs. State of Rajasthan, AIR 1967 SC 107 and Hari Shanker Jain vs. Sonia Gandhi, AIR 2001 SC 3689). And lastly, while construing the provisions of the Representation of People Act, it is held that the Election Commission cannot, by recourse to Section 21 of the General Clauses Act, deregister or cancel the registration o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll 01.10.2004; and lastly, Section 21of the General Clauses Act has no application to the order passed by the CIT under Section 12A because the order is quasi judicial in nature and it is for all these reasons the CIT had no jurisdiction to cancel the registration certificate once granted by him under Section 12A till the power was expressly conferred on the CIT by Section 12AA(3) of the Act w.e.f. 01.10.2004. 30. We are of the considered view that the view taken by the abovementioned three High Courts in the respective cases is in conformity with law and we accordingly approve the said view taken by these High Courts in three aforementioned decisions. 31. In the light of the foregoing discussion, the appeal succeeds and is allowed. Impug ..... X X X X Extracts X X X X X X X X Extracts X X X X
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