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2016 (6) TMI 499 - AT - Income TaxRegistration U/s 12A cancelled - profit motive / commercial activity - The assessee claimed that even if there are certain substantial amendments in object, the assessee deserved registration continue on the ground that the activities are yet charitable in nature - Held that:- The amended objects were not voluntary change. The assessee has to follow the said laws related to sports activities. The comparison given by the ld CIT in his order dated 28/03/2013 does not show any fundamental deviation from the original charitable activities to non-charitable activities. The assessee’s object to promote the cricket in the State by providing/involving various activities at the district level to state level through coaching provided by coaches, ground and facilities etc. Therefore, the assessee’s activities are charitable. At the time of registration, the ld CIT has to consider Section 12AA(3) and he has to consider two conditions for rejection of registration granted (i) the activities of the trust are not genuine, (ii) are not being carried out in accordance with the object of the trust as the case may be. The ld CIT has not found any infirmity in the activities carried out by the RCA as non- genuine or not being carried out as per object of the trust. It is also a fact that the game of cricket become very potential with reference to revenue compared to other games, therefore, the revenue generated by the RCA are substantial but this ground cannot be used to cancel the registration granted by the ld CIT as predominant object of the trust is charitable and substantial revenue generated is incidental to the main object. If, the ld Assessing Officer found any violation in application of fund, he can make disallowance U/s 11 of the Act. Thus, we are of the considered view that the ld CIT was not right in withdrawing the registration granted U/s 12A of the Act. - Decided in favour of assessee.
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