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2014 (6) TMI 367 - AT - Income TaxWithdrawal/cancellation of registration u/s 12A/12AA of the Act – Charitable purpose or not - assessee trust is constituted on 27.7.2000 by the President of India acting through the Ministry of SSI and ARI - DIT(E) come to the conclusion that activities of the assessee trust were in the nature of trade, commerce or business etc and since its receipts are in excess of monetary limit laid down in the aforementioned proviso there is contravention of provisions of section 2(15) r.w. proviso which has come into effect from 2009-10. - Held that:- The first proviso to the provision (s.2(15)), it would be noted, does not impinge directly on the objects per se, but the manner in which those are to be attained or achieved, and herein lies the controversy or the dichotomy attending the respective view points of the assessee and the Revenue. The review of registration subsequent thereto, as spoken of by the tribunal in Mumbai Cricket Association [2012 (8) TMI 369 - ITAT MUMBAI], is only in terms of and subject to the mandate of section 12AA(3), and which thus would be of no assistance to the Revenue. - Decision in the case of Maharashtra Housing and Area Development Authority V/s ADIT(E) [2013 (11) TMI 516 - ITAT MUMBAI] and Rajasthan Housing Board Versus Commissioner of Income-tax, Jaipur-II [2012 (5) TMI 100 - ITAT JAIPUR] followed. Exemption u/s. 11 r/w s. 12 is to be, notwithstanding grant of registration, only by the Assessing Officer, whose powers in the matter of assessment are plenary, on the satisfaction of the condition/s of those sections. Exemption u/s. 11(1) is only upon the application of income for charitable purpose/s, so that it is only where so applied, reading the term 'charitable purpose' as per the extant law, that it could be allowed. The insertion of section 13(8) by the Finance Act, 2012 (w.e.f. 1.4.2009, i.e., A.Y. 2009-10 onwards), from which period the changed section 2(15) becomes operative, removes the matter beyond the pale of any doubt. The matter/issue of exemption u/s. 11 would thus have to be reviewed by the Assessing Officer in assessment on a year to year basis. 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. – Relying upon - the registration has wrongly been withdrawn and the order passed by DIT(E) - decision of the Mumbai Bench of the Tribunal in the case of M/s Vanita Samaj [2014 (3) TMI 320 - ITAT MUMBAI] followed – Decided in favour of Assessee.
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