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2014 (2) TMI 1231 - AT - Income TaxRegistration granted to Assessee u/s. 12A cancelled - Held that:- It is not the case of the revenue before us that the dominant activities of the assessee are not fitting with the objects of the Council and that the dominant activities in the nature of trade, commerce and business or that the councils dominant activities have ceased to be for the purpose of advancement of any other objects of general public utility. Merely because the income of the assessee has crossed prescribed limit of ₹ 10 lakhs, that itself cannot be ground for cancellation of its registration invoking section 12AA(3) of the Act. If any of the income arising on the activities is not in accordance with the objects of the trust, the assessees income, at best, may not get the exemption under Section 11 of the Act. Further for the previous year, during which the gross receipt income crosses limit of ₹ 10.00 lacs, the trust will not get exemption or benefit of its being charitable in nature despite its carrying out charitable activities. However, it will get such benefit if it is registered as charitable institution and income from business activities, as mentioned in first proviso to section 2(15), does not cross limit of ₹ 10.00 lacs. Subject to our above observations, the impugned order of the DI.T(exemptions) is hereby set aside and the registration to the assessee council granted under section 12A of the Act is hereby ordered to be restored - Decided in favour of assessee
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