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2012 (7) TMI 734 - AT - Income TaxWithdrawal of registration u/s 12AA - amendment in section 2 (15) of the Act by Finance Act, 2008 - Held that:- CIT had not considered the first proviso to section 2(15) as well as the second proviso to section 2(15) while making the order for grant of registration on 30.09.2009 - in view of the fact that section 10(20A) was omitted and an Explanation was added to section 10(20) of the Act, enumerating the "Local Authorities" contemplated by section 10(20), the assessee could not claim any benefit under those provisions after April 1, 2003. That the first proviso and second proviso of section 2(15) were added by the Finance Act, 2008 w.e.f. 01.04.2009, therefore, after insertion of the said proviso, any institution carrying on of any activity in the nature of trade, commerce or business etc. shall not be a charitable purpose - As per objects of the assessee, it is observed that the main object of the assessee is to promote and secure the development of local area and there is no charitable purpose or any activity for general public utility. The activities of the assessee are aimed at earning profit as it is carrying on activity in the nature of trade, commerce or business, and there is no obligation on the part of the assessee to spend income on 'charitable purpose' only - even on dissolution or winding up by not having any restriction on application of asset for charitable purpose, the objects pursued by the assessee cannot be said to be a charitable in nature - CIT, Jammu, has rightly being satisfied held that the Jammu Development Authority is not entitled to registration and accordingly cancelled the registration so granted - against assessee.
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