Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 1133 - AT - Income TaxRegistration granted to the assessee under Section 12AA - Held that:- The assessee is a public undertaking of the State Government of Karnataka. As held by the Hon'ble High Court (supra), registration granted under Section 12A of the Act can be cancelled only under the following two circumstances; (i) if the objects of such trust or institution are not genuine; and (ii) the activities of the trust or institution are not being carried out in accordance with the objects of the trust or institution. In the impugned order in the case on hand, there is no finding rendered by the ld. DIT (Exemptions) that there was any violation of the aforesaid two conditions by the assessee, and therefore the grounds which empower the ld. DIT (Exemptions) to cancel the registration under Section 12AA(3) of the Act, are absent. The registration cannot be cancelled in view of the amendment of the first proviso to section 2(15) of the Act, since it is not a ground specified in the statute for cancellation of registration under Section 12AA(3) of the Act. As observed that if the case of an assessee falls within the ambit of the first proviso to section 2(15) of the Act, the benefits which arise from registration under Section 12AA of the Act will not be available to it, and this aspect is to be considered by the Assessing Officer, but this would not be a ground for cancellation of registration. From an appreciation of the facts and circumstances of the case on hand, we find that the facts herein are similar both factually and legally to that of the cited case of DIT(Exemptions) V Karnataka Industrial Area Development Board (2015 (7) TMI 169 - KARNATAKA HIGH COURT ) and therefore respectfully following this decision, we hold that the impugned order of DIT (Exemptions) cancelling the assessee's registration by order under Section 12AA(3) of the Act dt.8.11.2011 is not sustainable and therefore cancel the same. - Decided in favour of assessee
|