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2016 (8) TMI 260 - AT - Income TaxRegistration under S.12AA - dissolution clause - incidental objects - Held that:- A bare reading of the order of the CIT(Exemption) would show that the objections of the CIT(Exemption) to the applications of the assessee for registration under S.12AA and approval under S.80G are two fold. Firstly, as per the dissolution clause specified in the Memorandum of Association, extracted above, there is no intention on the part of the assessee to transfer the assets to any other similar institution having registration under S.12AA of the Act. We find no rationale in this objection of the Commissioner. Relevant dissolution clause clearly specifies that surplus arising on dissolution, after satisfaction of its debts and liabilities shall be transferred to other institutions pursuing objects similar to the those of the assessee company. The second objection of the CIT(Exemption) is based on the reading and interpretation of the ‘incidental objects’ as provided for attainment of main objects in the Memorandum of Association. As per CIT(Exemption), the incidental objects indicate the intention of the assessee to pursue its activities outside India. This objection of the Commissioner for denial of registration is also without any force. We notice from the relevant incidental clause relied upon by the Revenue that such clause primarily enables the assessee to raise funds to attain the main objects of the company. It does not give any impression that the assessee shall carry out its activities outside India. We set aside the impugned order of the Commissioner of Income-tax (Exemption) and restore the matter back to his file with a direction to reconsider the applications of the assessee for registration under S.12AA and approval under S.80G afresh in accordance with law and after giving reasonable opportunity of hearing to the assessee.
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