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2016 (4) TMI 1179 - HC - Income TaxExemption u/s 12AA - non charitable activity - Held that:- Not found any material which would indicate that the assessee or its affairs are not being carried out in accordance with the object of the Trust or institution. If these are two aspects referred to in subsection (3) of Section 12AA and the materials in that behalf were completely lacking, then, we do not find any reason for the Director to exercise the power which he purported to exercise in the present case. On this short ground alone the assessee's appeal should have been allowed by the Tribunal. Though the Tribunal has discussed the ambit and scope of the proviso to Clause 15 of Section 2 and subsection (3) of Section 12AA, we do not find that in the facts and circumstances of the present case, any such discussion was necessary and warranted, once the appeal could have been allowed on the above short ground. With this conclusion, we uphold the order of the Tribunal. We need not assign any other reason nor examine the contentions raised before us in further details. The questions, as are posed by Mr. Malhotra and in the backdrop of these proceedings can be decided in a proper case. With these observations, the appeal fails and it is dismissed.
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