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2014 (4) TMI 201 - AT - Income TaxCancelling registration u/s. 12A - Whether, Registration once granted to Assessee being a charitable institution cannot be cancelled because of newly inserted proviso to section 2(15) of Act – Held that:- Not mentioned that first proviso will not apply if total receipts from charitable activities exceeds limit of Rs.10.00 lacs during "any year" - Does not mean that such benefits will not be available to institution for all other assessment years during which its receipts does not cross limit of Rs.10.00 lacs. - Insertion of second proviso has not made definition restrictive or rigorous rather with insertion of second proviso to section 2(15) of Act - For previous year, during which gross receipt income crosses limit of Rs.10.00 lacs, trust will not get exemption or benefit of its being charitable in nature despite its carrying out charitable activities - However, it will get such benefit if it is registered as charitable institution and income from business activities, as mentioned in first proviso to section 2(15), does not cross limit of Rs.10.00 lacs - Action of CIT(A) relying upon newly inserted proviso from 01.04.2009 in cancelling registration of trust, is not correct or justified - Cancellation of registration granted to Assessee u/s. 12A is hereby set aside – Decided in favor of Assessee.
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