Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 871 - KARNATAKA HIGH COURTRegistration under Section 12A cancelled - examination of records shows that the Mandali has earned a huge net profit of ₹ 30,72,028/- for the assessment year 2008-09 and ₹ 42,23,142/- for the assessment year 2009-10 and activity carried on by the assesse is in the nature of trade, commerce or business or any activity of rendering any service in relation to any trade, commerce or business - Held that:- Registration granted under Section 12A can be cancelled under two circumstances i.e., (i) If the activities of such trust or institution are not genuine and (ii) The activities of trust or institution not being carried out in accordance with the object of the trust or institution. It is not in dispute that the Director of Income Tax (Exemption) has not recorded any such finding about the violation of the two conditions stated above. The Tribunal while deciding the matter has rightly recorded a finding that a perusal of impugned order shows that Director of Income Tax (Exemption) has not arrived at any such finding. The fact that the receipts from commercial activities are more compared to the overall receipts of the charitable organization can neither lead to the conclusion that the activities of the trust or institution are not genuine nor it can be said that the activities of the trust or institution are not being carried out in accordance with the objects of the trust or institution and therefore, the two conditions stipulated under the provisions of Sub-section (3) of Section 12AA of the Act, which empowers the authority to cancel the registration, do not exist in the present case. Decided in favour of assessee.
|