CIT has no power to cancel registration granted before 01.10.2004

In Kapoor Educational Society v. CIT (2010)44 DTR (Lucknow)(Trib)97 the commissioner vide his order dated 06.05.2010 cancelled the registration granted to the appellant trust on 01.03.1999 (w.e.f.01.01.1998).

The tribunal held that at the time of granting registration there were only two powers vested with CIT viz. either to grant registration or refuse to grant registration.The power to cancel registration was inserted in to the statute only w.e.f. 01.10.2004 by incorporating sec.12AA(3). Since the object of insertion of the provision was not clarificatory or explanatory,the authorities who had powers to grant registration or refuse registration did not have the power to cancel registration granted previously.

The amendment brought in by the Finance Act 2010 empowering cancellation of registration granted even under sec.12A is effective from 01.06.2010. Thus the order passed by the CIT on 06.05.2010 still has no sanction of law. Thus the decision was in favour of the assessee.