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2015 (10) TMI 473 - AT - Income TaxRegistration granted u/s. 12AA withdrawn - derecognizing approval granted u/s. 80G(5) - Held that:- There was no requirement of making an application for renewal of recognition granted u/s. 80G of the Act, as the recognition granted to the assessee will hold good in perpetuity. In such circumstances, the proper course to have been adopted by the CIT was to have filed the application of the assessee seeking extension of recognition u/s. 80G(5) of the Act. The action of the CIT in further withdrawing registration already granted to the assessee u/s. 12AA of the Act is also not proper. CIT has proceeded on the basis of an incorrect appreciation of facts inasmuch as, he has presumed that the assessee existed for religious purpose and not for charitable purpose. It appears that the assessee has also not explained the position properly in the proceedings before the CIT, as to the true nature of the use of land. We are therefore of the view that it would be just and proper to set aside the orders of the CIT and remand the issue of withdrawing recognition u/s. 12AA of the Act for fresh consideration by the CIT. As far as recognition u/s. 80G(5) of the Act is concerned, we hold that the recognition already granted will continue to operate and the order passed by the CIT provided the registration u/s.12AA of the Act continues. Insofar as order passed u/s. 12AA(3) is concerned, the issue will be considered afresh by the CIT after affording the assessee opportunity of being heard. We may also clarify that in the event of registration u/s. 12AA of the Act being withdrawn, the CIT is at liberty to take appropriate action for withdrawing recognition granted u/s. 80G of the Act to the assessee. - Decided in favour of assessee for statistical purposes
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