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2014 (1) TMI 1902 - AT - Income TaxExemption u/s 11 - cancelling the registration granted to the assessee u/s 12AA invoking the provisions of the sec.12AA(3) - HELD THAT:- The matter has to be remitted back to the file of Ld. DIT(E) who shall examine the conduct of the assessee with respect to its activities performed during the relevant previous year and if they fall beyond the scope of Sec.2(15) and its objects, in this case, objects being ”relief to the poor”, Ld. DIT(E) may pass appropriate order as per law by canceling the registration invoking the section 12AA(3). DIT(E) shall also take note of ‘Report of the Subcommittee of the Central Board of Directors of Reserve Bank of India’ issued during the year January, 2011and the decisions in the case of Sinhagad Technical Education Society [2012 (3) TMI 262 - BOMBAY HIGH COURT] and in the case of CIT V. National Institute of Aeronautical Engineering Educational Society [2009 (7) TMI 94 - UTTARAKHAND HIGH COURT] in order to assess whether the activity conducted by the trust falls under the first limb of sec.2(15) of the Act or activities such as advancement of any other object of general public utility or any other activity which falls outside the scope of the sec.2(15) of the Act. The assessee company is engaged in any activity predominantly beyond the scope of Sec.2(15) of the Act and intents to grab the benefits of the relevant provisions of the Act under the garb of charity as a colorable device, Ld. DIT(E) shall be at liberty to invoke the provisions of Sec.12AA(3) of the Act. Appeals of assessee are allowed for statistical purposes.
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