In I.T.A Nos.1801 to 1805/Del/2021-ITAT- ITAT (Delhi) holds the order of the Principal Commissioner of Income Tax, cancelling the registration of Gian Sagar Educational & Charitable Trust under section 12AA (3) of Income Tax Act to be legally not valid; All the assessments restored to the file of the AO for denovo assessments
Members Narendra Kumar Billaiya (Accountant) & Challa Nagendra Prasad (Judicial) [21-04-2023]

Read Order: Gian Sagar Educational & Charitable Trust v. ACIT CC-27, New Delhi

Chahat Varma

New Delhi, April 26, 2023: The Delhi bench of the Income Tax Appellate Tribunal has restored all the assessments to the file of the AO for denovo assessments in the light of the decision of the Tribunal in restoring the registration granted to Gian Sagar Educational & Charitable Trust (assessee) under section 12AA of the Income Tax Act.

The assessee is a charitable trust and was granted registration under section 12AA of the Income Tax Act. The Principal Commissioner of Income Tax (PCIT) vide order dated 01.03.2016 withdrew the registration granted to the assessee u/s 12AA of the Act. Assessee challenged the order of the PCIT and the Tribunal by order dated 03.01.2017 had set aside the order and restored the proceedings to the PCIT to decide afresh. The PCIT thereafter passed order on 27.10.2017 cancelling the registration granted under section 12AA of the Act to the assessee since inception on the ground that the assessee trust is allegedly involving in nefarious activities for inducting fresh batch of students for academic session without requisite infrastructure. This order of the PCIT was also challenged by the assessee and the Tribunal held that the order of the PCIT dated 27.10.2017 cancelling the registration under section 12AA (3) since inception was legally not valid.

The Tribunal opined that order of the PCIT passed on 01.03.2016 and 27.10.2017 withdrawing the registration under section 12AA of the Act, the reassessments made by the AO under section 147/143 on the ground that the PCIT had withdrawn the registration under section 12AA of the Act will not stand and there has to be a fresh assessment in the light of the order of the Tribunal restoring the registration under section 12AA of the Act.