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2016 (2) TMI 603 - AT - Income TaxRegistration granted under section 12AA(1) denied - receipts / earning of the assessee during the relevant previous year has exceeded prescribed limit - Held that:- Only because the receipts / earning of the assessee during the relevant previous year has exceeded prescribed limit, for that reason alone the assessee institution cannot be considered as non-charitable. For cancellation / withdrawal of registration under section 12AA(3), the provisions of section 2(15) cannot be brought into play. More so, when there is no material brought on record by the learned DIT(E) to demonstrate / establish that either there is change in the objects of the appellant institutions on the basis of which registration was granted earlier or the activities of the institution are not in accordance with its stated objects. As held in the judicial pronouncements cited by the learned counsel, the first proviso to section 2(15), is not at all relevant for the purpose of cancellation / withdrawal of registration under section 12AA(3) though, it may be relevant for examining assessee's claim of exemption section under section 11 which can only be looked into during the assessment proceedings. In view of the aforesaid, we are inclined to set aside the order of the learned DIT(E) and direct him to restore registration granted under section 12AA(1) of the Act to the appellant institution from the date of cancellation. - Decided in favour of assessee
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