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2014 (3) TMI 1012 - AT - Income TaxRegistration u/s.12A - Held that:- We hold that the finding given by the Ld.CIT that the assessee was collecting huge donation for admission of students to various institutes run by it in violation of provisions of Maharashtra Educational institutions (Prohibition of Capitation Fee) Act, 1987 for which the activities of the assessee trust are illegal and therefore the activities are not genuine is not correct. Further, the conclusion of the Ld. CIT that the institutes are being run on commercial lines with profit motive due to the substantial surplus created year after year is also not correct since the assessee has accumulated its surplus which is within the permissible limit of 15% u/s.11 and 12. In any case since 2 views are possible on this issue, the view in favour of the assessee has to be adopted in view of the settled proposition of law. In this view of the matter, we hold that the Ld. CIT is not justified in cancelling the registration u/s.12A of the I.T. Act, 1961. We accordingly set-aside the order of the Ld.CIT and direct him to grant registration u/s.12A of the Income Tax Act. - Decided in favour of assessee. Denial of renewal of approval u/s.80G - Held that:- While deciding the appeal filed by the assessee for restoring the registration u/s.12A we have already held that the assessee has not violated any of the provisions of section 11 r.w.s. 13(1)(d) and that the assessee is entitled for registration u/s.12A. Since the assessee fulfils the conditions for approval u/s.80G(5)(vi) of the Income Tax Act, therefore, we hold that the assessee is entitled to renewal of approval u/s.80G of the Income Tax Act. We accordingly direct the Ld.CIT to grant renewal of approval u/s.80G. - Decided in favour of assessee.
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