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2015 (5) TMI 671 - AT - Income TaxWithdrawal of registration u/s 12AA - whether proviso to Section 2(15) is not applicable to the assessee's case? - Held that:- The conclusion of order of ld. CIT in withdrawing the registration does not appear to conform to the specific conditions laid down in sec 12AA(3). An order withdrawing the registration of trust is a drastic action and the law provided a statutory mechanism of assessment, verification of trust activities, and apportionment of income and expenditure of various activities of the trust. Benefits of sec 11 and 12 can be extended on the basis of scrutiny and verification by the AO. Ld. CIT has not pointed out any specific instance of any activity, income or expenditure being non-genuine. Sec. 293C is not applicable to approvals which specifically provide manner of withdrawal of approval as held in the case of Jaipur Development Authority vs. CIT [2014 (10) TMI 219 - ITAT JAIPUR] Thus the impugned order of ld. CIT (Admn.) withdrawing the registration u/s 12AA(3) is not in conformity with the language of this section. We are of the view that ld. CIT(Admn) should revisit the issue of withdrawal of registration afresh after taking into consideration the legislative scheme of powers, incorporation of proviso, inclusive definition of the Charitable Objet as interpreted by plethora of judicial decisions and decide the issue of registration after giving the assessee an opportunity of being heard. Since we have set aside the issue, the additional ground as admitted by us with other pleadings for proper disposal of the same shall be considered by ld. CIT. - Decided in favour of assessee for statistical purposes.
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