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2016 (4) TMI 1006 - AT - Income TaxCancellation of registration u/s. 12AA(3) - cancellation of grant of certificate u/s. 80G(5)(vi) of the Act by DIT(E), Kolkata - Held that:- The amendment brought in section 12AA(3) by adding a proviso by Finance No. 2 Act, 2004 and by Finance Act, 2008 adding proviso to section 2(15) of the Act have been discussed in great detail and laid down the principles that registration granted u/s. 12A of the Act cannot be withdrawn or cancelled by DIT by invoking the provisions of section 12AA(3) of the Act. Section 12AA(3) of the Act empowers the DIT to cancel the registration granted u/s. 12AA(1)(b) of the Act if he is satisfied that the activities of the trust or institution are not genuine or are not being carried out in accordance with the object of the trust or institution, as the case may be. The combined reading of both the sections of section 12AA(3) and 12AA(1)(b) of the Act makes it clear that registration can be cancelled only in those cases where registration has been granted u/s. 12AA(1)(b) of the Act but it no where empowers DIT to cancel or withdraw the registration granted u/s. 12AA of the Act. Similar is the position in respect to exemption/rejection u/s. 80G(5)(vi) of the Act in the present case in the given facts and circumstances. Accordingly, we quash the orders passed by DIT(E) cancelling the registration u/s. 12AA(3) and rejection/exemption granted u/s. 80G(5)(vi) of the Act dated 08.03.2011. - Decided in favour of assessee.
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