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2019 (8) TMI 233 - AT - Income TaxExemption u/s 11 - withdrawal of registration u/s 12AA from AY 2009-10 - allegation of no charitable activities and is carrying out commercial activities - payment to specified person - whether the assessee is holding the benefit of registration u/s 12A of the income tax act or not? - HELD THAT:- Merely submissions of the agreement by the assessee did not prove that the services are at fair market value and no benefit of accrued to the specified persons. For the CIT exemption, merely reproducing the clauses of the agreement also does not justify that there is any benefit accrued to the specified persons. There is no reason to hold that in absence of any benefit to the specified persons, the registration granted to the assessee trust can be withdrawn. Further if the benefit is granted to the specified persons, then after 01/10/2014, the CIT exemption is empowered to withdraw the registration u/s 12 AA. We set aside the whole issue back to the file of the learned CIT exemption with a direction to the assessee to substantiate before him that by making such a huge payment to the specified persons from assessment year 2009 – 10, no benefit has accrued to the specified persons as envisaged u/s 13 (1) - set aside to the file of the learned CIT exemption for fresh determination about withdrawal of registration u/s 12 AA (3) r.w.s. 12 AA (4) with effect from assessment year 2009 – 10. Appeal of the assessee partly allowed for statistical purposes.
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