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2014 (4) TMI 928 - ITAT MUMBAIWithdrawal of registration u/s 12A of the Act – Acceptance of capitation fee - Whether the acceptance of capitation fee can be a ground for cancellation of registration granted u/s 12A by invoking Section 12AA(3) of the Act – Held that:- When the assessee is carrying on a number of educational institutions approved by the Central and State Government Board and University then it cannot be said that the activity of promotion and imparting education is not genuine – Relying upon Vidyavardhini Vs CIT [2012 (4) TMI 306 - ITAT MUMBAI] - the cancellation on the ground of receipt of capitation fee itself is not sustainable - mere accepting the capitation fee cannot be brought into the scope of Section 12AA(3) if the prominent activity of the assessee are not doubted being imparting of education and promotion of education. The Commissioner has also accepted the fact of the activity of the assessee that the assessee is engaged in the educational activity but he has opined that the educational activity has been converted into commercial venture - When nothing has been brought on record to say that the assessee has carried out the activities other than imparting and promoting the education then the cancellation of registration on the ground of accepting the capitation fee which has been used for the purpose of achieving the objects of the assessee is not sustainable – thus, the order of the Commissioner is set aside and the registration u/s 12A is restored – Decided in favour of Assessee.
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