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2014 (6) TMI 334 - AT - Income TaxCancellation of registration u/s 12A of the Act – Activity charitable or not – Holding of seminars - Held that:- Following Agra Development Authority Versus Commissioner of Income-tax-1 [2013 (8) TMI 549 - ITAT AGRA] because of amendment to section 2(15)w. e. f. 01. 04. 2009 certain changes have been brought about the trusts and in the definition of the phrase charitable activities - certain changes had occurred in the statute when power was given to the departmental authorities to cancel the registration as per the provisions of section 12AA(3)of the Act - DIT(E) can cancel the registration granted to a trust if the activities of the trust or institution are found to be non-genuine or its activities are not in accordance with the objects for which such trust or institution was established. DIT(E) has not given specific finding - Holding of seminars cannot be termed a commercial or business activity, as the trust was established for the specific purpose - DIT(E)has ignored the fact the trust had suffered loss by arranging seminars - Circular issued by the CBDT on 06. 04. 2011 clearly mentions that amendment would be applicable from the AY. 2011-12 and subsequent assessment years - before 01. 06. 2010 registration can be cancelled only on those cases where the registration has been granted under section 12AA(1)(b) of the Act - Before 01. 06. 2010 this section 12AA(3) nowhere empowers the CIT to cancel or withdraw registration u/s 12A of the Act - In absence of such power, the registration granted u/s 12A cannot be withdrawn or cancelled before 1. 6. 2010 - The power of cancellation of registration u/s 12A of the Act came to be incorporated by way of amendment introduced by Finance Act 2010 w. e. f. 01. 06. 2010 - registration was granted in 2004 and was withdrawn for the AY. 2009-10 i. e. before the AY. 2011-12 - as the cancellation is against the provisions of law, it cannot be endorsed – Decided in favour of Assessee.
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