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2014 (9) TMI 1102 - AT - Income TaxCancelling/withdrawing the registration granted to the assessee Trust invoking the provisions of Section 12AA(3) - proof of non charitable activities - Held that:- We are of the opinion that the DIT(E) could cancel the registration granted u/s.12A of the Act by invoking the provisions of section 12AA(3) of the Act only if he was satisfied that the activities of the trust were not genuine or the activities of the trust were not being carried out in accordance with the objects of the trust, that section 12AA(3) of the Act did not authorise the DIT-E to cancel registration u/s.12A, if he was of the opinion that the activities of the assessee trust involved the carrying on of any activity in the nature of trade, commerce or business, that DIT-E had failed to bring out any fact that the activities of the assessee trust were not genuine or were not carried out as per the objects of the trust. Receipt of ₹ 50.12 lakhs from four caterers can be subject matter of the assessment order to be passed by the AO. But, same cannot be, in any condition, the basis for invoking provisions of section 12AA(3). Circular issued by the CBDT on 06.04.2011 clearly mentions that amendment would be applicable from the AY.2011-12 and subsequent assessment years. In this case registration was granted in 1981 and was withdrawn for the AY.2009-10 i.e. before the AY. 2011-12. As the cancellation is against the provisions of law, so same cannot be endorsed. Here, we would also like to mention the case of Maharashtra Housing and Area Development Authority (2013 (11) TMI 516 - ITAT MUMBAI), DIT-E, Mumbai had withdrawn the registration granted to the assessee on the similar grounds. While deciding the appeal in favour of the assessee, Tribunal held that even though the objects of the institutions were no longer towards a charitable purpose in view of the amended law, registration u/s.12A could not be reviewed or withdrawn in absence of stipulation in section 12AA(3)regarding continuing satisfaction. - Decided in favour of the assessee-trust.
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