|Question And Answer
|Cancellation of Registration u/Sec. 12A retrospectively
|Advocate Shashi Ashok Bekal
|charitable trust, registration, Registration cancelled
|January 3, 2023
Assessee is Charitable trust registered under SEc. 12A since 1998 running educational institution . Search action U/Sec.132 was carried out at the premises of the trust , where in certain documents regarding acceptance of capitation fees were found. on the basis of those documents in the year Registration U/sec.12A was cancelled as per order passed in the month of may 2018 retrospectively w.e.f.A.Y. 2007-08.
whehther the action of PCIT of cancellation of registration U/SEc.12A retrospectively is valid?
The PCIT can cancel the registration retrospectively if they come to a conclusion that the trust was not running for charitable purposes.
PCIT is empowered to cancel the registration of the trust retrospectively subject to the provisions of section 12AA(3) of the Income-tax Act, 1961