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2013 (11) TMI 516 - AT - Income TaxCancellation of registration u/s 12A/12AA - In view of the learned DIT(E), the assessee's activities, which fell in the last category of the specified activities, i.e., 'advancement of any other object of general public utility' were hit by first proviso to section 2(15) of the Act, so that they could no longer be regarded as charitable or as constituting a 'charitable purpose/s' - Held that:- The first proviso to the provision (s.2(15)), it would be noted, does not impinge directly on the objects per se, but the manner in which those are to be attained or achieved, and herein lies the controversy or the dichotomy attending the respective view points of the assessee and the Revenue. The review of registration subsequent thereto, as spoken of by the tribunal in Mumbai Cricket Association (2012 (8) TMI 369 - ITAT MUMBAI), is only in terms of and subject to the mandate of section 12AA(3), and which thus would be of no assistance to the Revenue - Assessing Officer is, while framing an assessment, empowered to examine the allowability of exemption u/s.11 where the proviso to section 2(15) is attracted. This follows trite law that exemption u/s. 11 r/w s. 12 is to be, notwithstanding grant of registration, only by the Assessing Officer, whose powers in the matter of assessment are plenary, on the satisfaction of the condition/s of those sections. Exemption u/s. 11(1) is only upon the application of income for charitable purpose/s, so that it is only where so applied, reading the term 'charitable purpose' as per the extant law, that it could be allowed. The insertion of section 13(8) by the Finance Act, 2012 (w.e.f. 1.4.2009, i.e., A.Y. 2009-10 onwards), from which period the changed section 2(15) becomes operative, removes the matter beyond the pale of any doubt. The matter/issue of exemption u/s. 11 would thus have to be reviewed by the Assessing Officer in assessment on a year to year basis. The primary onus to return its income each year in accordance with the law, it may be appreciated, is on the assessee. The argument advanced as to the inapplicability of even the substituted s. 2(15) in view of 'low' profitability, even as we find no reference to any criteria qua the same therein, is rendered out of place or superfluous in view of our aforesaid findings, and is accordingly not dealt with - Following decision of Rajasthan Housing Board v. CIT (2012 (5) TMI 100 - ITAT JAIPUR) - Decided in favour of assessee.
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