Cit-Ii, Chandigarh vs M/S Punjab Cricket Association
2024 Latest Caselaw 14371 P&H

Citation : 2024 Latest Caselaw 14371 P&H
Judgement Date : 12 August, 2024

Punjab-Haryana High Court

Cit-Ii, Chandigarh vs M/S Punjab Cricket Association on 12 August, 2024

Author: Sanjeev Prakash Sharma

Bench: Sanjeev Prakash Sharma

                                 Neutral Citation No:=2024:PHHC:104069-DB




214
          IN THE HIGH COURT OF PUNJAB AND HARYANA AT
                         CHANDIGARH

                                                ITA
                                                ITA-416-2010(O&M)
                                                Date of Decision:
                                                        Decision:12.08.2024

COMMISSIONER OF INCOME TAX-II,
                       TAX I, CHANDIGARH
                                                                .........Appellant
                                                                       Appellant
                                                V/s.

M/S PUNJAB CRICKET ASSOCIATION, MOHALI, PUNJAB.
                                            ........Respondent

CORAM:        HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA
              HON'BLE MR. JUSTICE SANJAY VASHISTH

Present       Mr. Amanpreet (A.P.) Singh, Senior Standing counsel
              for the appellant/Income Tax Department.

              Mr. Abhinav Narang, Advocate, and
              Ms. Parnika Singla and Mr. Sidhant Suri, Advocates
              for the respondent.

         ***
SANJEEV PRAKASH SHARMA,
                SHARMA J. (Oral)

1. Learned counsel for the appellant appellant/revenue vehemently argued and

submits that the Income Tax Appellate Tribunal, Chandigarh Bench 'B',

Chandigarh (hereinafter referred to as the ""ITAT"), vide its order dated

27.08.2009 passed in an appeal by the appellant/revenue appellant/revenue, has erred in holding

that the authority ority has no jurisdiction to cancel the registration granted under

Section 12 of the Income Tax Act, 1961 (hereinafter referred to as "the Act")

by invoking powers under Section 12-AA(3) 12 AA(3) of the Act.

2. We have carefully considered the submissions and also examined

the applicability of the judgment dated 08.05.2024 passed by this Court in

ITA-21-2011 titled as The Commissioner of Income Tax, Patiala Vs. Young

Scholar's Educational Society, Barnala and find that the issue raised by the

1 of 3

Neutral Citation No:=2024:PHHC:104069-DB

ITA-416-2010 2010 (O&M)

appellant/revenue /revenue stands finally adjudicated by this Court in the case (Supra)

after relying on the judgments ments passed in the case of New Noble Educational

Society vs Chief Commissioner of Income-Tax Income Tax and another another;(2022) 448 ITR

594 and Pinegrove International Chairtable Trust vs Union of India and

others(2010) (2010) 327 ITR (P&H) whereby this Court has held that the powers power

available to the authorities to cancel the registration granted under Section

12AA(3) of the Act was only prospective and could not be applied

retrospectively. The relevant extract the order is reproduced as under

retrospectively. under:-

"15. XXXX XXXX

16. While answering questions of law nos. 1, 3 and 4 (supra),

we find that essentially the ITAT has held the order passed by the

CIT cancelling the registration on 02.03.2010 to be without

jurisdiction and without authority in law. It has stated so as the

amendment was made in Section 12AA(3) of the Act by the

Finance Act of 2010 empowering the Commissioner to cancel tthe

registration granted under Section 12A of the Act where it reaches

to a conclusion that the activities of the such trust are not genuine

and not being carried out in accordance with the objects of the

trust or institution. The power was, therefore, not available as on

the day when the CIT cancelled the registration i.e. on

02.03.2010.

17. XXXX XXXX

18. Thus, we find that the facts were almost similar to the facts

of the present case as in the aforesaid case Industrial

Infrastructure Development Corporati Corporation (Gwalior) M.P.

Limited's case (supra), the Commission had cancelled the

registration under Section 12A of the Act dated 13.04.1991 by its

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Neutral Citation No:=2024:PHHC:104069-DB

ITA-416-2010 2010 (O&M)

order dated 29.04.2002 and on 29.04.2002 the Commissioner was

not empowered to cancel such registration. In view th thereof, the

questions of law no. 1, 3 and 4 are answered in favour of the

assessee on the basis of judgment in Commissioner of Income Income-