Dismissing the appeal of the Revenue the Court held Tribunal was right in holding that the action under section 263 of the Act could not be taken subsequent to cancellation of registration for the year when the cancellation order was not available to the Assessing Officer while passing the order under section 147 or section 143(3) and that the cancellation of registration could not be made with effect from April 1, 2009 though the assessee was granted registration under section 12AA and not under section 12A. The Tribunal had followed its own decision referring to Circular No. 1 of 2011, dated April 6, 2011 ([2011] 333 ITR (St.) 7) issued by the Central Board of Direct Taxes and holding that section 12AA(3) was applicable only from the AY. 2011-12 and the appeal against such order was dismissed by the High Court (Mukesh Bhanusali Trust v. CIT(Cal)(HC) (ITA No. 333 of 2017 dt 11-3-2019 (AY 2010-11)
CIT (E) v. Sarlaben Bhansali Charities Trust (2023)454 ITR 44 (Cal)(HC) Editorial : SLP of Revenue is dismissed, CIT (E) v. Sarlaben Bhansali Charities Trust (2023)454 ITR 46 / 293 Taxman 599 (SC)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Charitable purpose-Cancellation of registration-Section 12AA(3) is applicable only from the AY. 2011-12-Tribunal following its own decision against which appeal of the Revenue was dismissed. [S. 12A, 12AA, 143(3) 147, 260A]