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2014 (3) TMI 320 - AT - Income TaxCancellation of registration u/s 12AA(3) of the Act - Whether there was any change in the status of the Trust or not – assessee contented that the DIT (Exemption) should have fulfilled the requirements of section 12AA(3) before cancelling the registration granted to the appellant earlier under section 12A of the I.T. Act and he has not considered the provisions of section 11(1)(b) of the I.T. Act properly - Held that:- On a conjoint reading of the first proviso with second proviso to section 2(15) of the Act, a Trust can be denied exemption in the year where the gross receipts exceed the limit prescribed in the second proviso to section 2(15) and in all other years income from such activities should be considered for the benefits under section 2(15) if it is within the limit provided - thus, the denial/ cancellation of registration is not in accordance with law - the gross receipts having exceeded the stipulated monitory limit provided in the second proviso to section 2(15) of the Act, the assessee is not entitled to claim exemption in this year but that fact alone cannot make the Trust non-genuine for the purpose of invoking section 12AA(3) of the Act – thus, the order passed by the DIT (Exemption) set aside – Decided in favour of Assessee.
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