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2015 (1) TMI 155 - AT - Income TaxCancellation of registration u/s 12AA(3) – Effect of introduction of section 2(15) w.e.f. 26.12.2011 - Introduction of proviso to section 2(15) of the Act stating that organization remained charitable or not – Held that:- In case commercial receipts exceeding the specified threshold, the intention of the legislature is not to cancel the registration u/s 12AA of the Act wherever receipts of an institution exceeds threshold limit as specified in proviso to section 2(15) of the Act – in Tamil Nadu Cricket Association Vs. Director of Income Tax (Exemptions) [2013 (12) TMI 833 - MADRAS HIGH COURT] it has been held that cancellation of registration should be with reference to the objects satisfying definition of charitable purpose at the time of registration and not by subsequent amendment to section 2(15) - since the assessee’s objects and activities are genuine registration cannot be cancelled merely because receipts are exceeding threshold limit as provided under second proviso to section 2(15) of the Act - It is open to the AO to deny exemption u/s 11 on the receipts of the assessee, if the AO feels that activities of the assessee are for general public utility and it is indulging in trade or commerce etc. – thus, the order of the DIT(E) is set aside – Decided in favour of assessee.
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