*In favour of Taxpayer*
*Issue*
Whether proper officer can suo-motto cancel the registration of taxpayer from the date of registration in case where the application for cancellation had been voluntarily filed by the taxpayer. Further whether in case the proper officer tends to correct the mistake and cancel the registration from date of application for cancellation, can he do so suo-motto or the taxpayer shall be allowed to do so.
*Held*
The H’ble Delhi High Court in case of Rakesh Kumar Garg upheld the order of the appellate authority wherein the order for cancellation of registration was struck down by the first appellate authority on the grounds that the number cannot be cancelled from the date of registration. Instead the appellate authority held that the registration may be cancelled as per the application of the taxpayer. Taking the cognizance of the judgment, Proper Officer suo-motto amended the date of cancellation whereas the same should have been allowed to the taxpayer.
*Our View*
The judgment is absolutely apt in terms of applicability of Section 29. The judgment shall work as a deterrent towards the abuse of powers by the proper officer while cancelling the registration.
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