Indian Tax Update - ITAT quashes PCIT order cancelling society's section 12A registration due to lack of jurisdiction

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ITAT quashes PCIT order cancelling society's section 12A registration due to lack of jurisdiction

ITAT allowed the appeal and quashed PCIT's order cancelling the assessee society's registration under section 12A. The tribunal held that PCIT lacked jurisdiction to withdraw or cancel exemption, as such powers vest exclusively with the "prescribed authority" - the CIT(Exemption) under Notifications 52/2014 and 53/2014. Despite incriminating documents found during third-party searches indicating non-genuine activities and fund diversion, the procedural error was fatal. Additionally, show cause notices dated 05.07.2023 and 16.08.2023 were found erroneous under section 12AA(5) provisions applicable post-01.04.2021. The tribunal relied on coordinate bench precedent in Lakhmi Chand Charitable Society case. Since the show cause notices were legally non-existent, the entire proceedings were deemed founded on wrong legal basis and set aside.


Categories: Income Tax, Highlights, TaxLaws, TaxTMI
Source: https://www.taxtmi.com/highlights?id=89983 Jul 01, 2025, 10:00 AM