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2012 (8) TMI 369 - AT - Income TaxCharitable Trust - cancellation of registration u/s 12A on ground of pursuing commercial activity - association engaged in the activity of promoting and regulating the game of Cricket in Mumbai entered into a concession agreement with Shrike Infrastructure (Concessionaire) for development of Indoor Cricket Academy (ICA) - activity undertaken at ICA includes running four restaurants with bar, banquets hall - concession provided to Concessionaire to recoup its cost by admitting 7000 Associates to the ICA facility who will be permitted to make use of such facilities on payment of charges to the Concessionaire - Revenue contended that assessee(MCA) had conceived and executed the plan and is owner whereas SI is mere a contractor for few years - activity cannot be said to be incidental to the cricket activity - collecting associate fee of around 10 to 15 lacs per member could not be said to be non-business activity - assessee contesting withdrawl and retrospective withdrawal of registration Held that:- Where an approval had been given, its withdrawal with retrospective effect is bad and illegal. However, department can any time review the function, in fact the CIT can review the grant of registration at any time because the words used in the provision are, "and subsequently the Commissioner is satisfied", which means that registration can be reviewed at any given point of time. Nevertheless, registration cannot be cancelled retrospectively. Cancellation of registration granted to MCA, shall not date back to the date of signing of the Concessionaire Agreement, i.e. 12.12.2005, but shall be effective from 01.06.2010. i.e. the date when the amendment was inserted in the provision - Decided partly in favor of assessee.
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