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2012 (11) TMI 1140 - AT - Income TaxRegistration and Cancellation of institution u/s 12AA- Charitable Purpose u/s 2(15) - Administrative Commissioner withdrew the registration u/s 12AA on the ground that the institution's aggregate value of the receipt from the charitable activities exceeds ₹4 crore which is beyond the limit as mentioned in s. 2(15), therefore, the taxpayer is not charitable institution. HELD THAT:- If the aggregate contract receipts exceed ₹ 10 lakhs in any of the years, at the best, the assessing officer may deny exemption at the time of assessment proceedings. In view of the above, this Tribunal is of the considered opinion that the subsequent amendment to section 2(15) of the Act by introducing Proviso fixing the monetary limit in respect of public utility services cannot be a reason to cancel the registration. The Commissioner cannot go beyond the conditions provided in section 12AA(3) for cancelling the registration that are - (1) when the activity of the trust or institution is not genuine; (2) when the activity is not being carried out in accordance with the object of the trust / institution. In other words, the registration can be cancelled only if the Commissioner is satisfied that the object of the trust is not genuine or the activity of the taxpayer society was not carried out in accordance with the object. Decision in favour of assessee.
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