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2017 (1) TMI 670 - AT - Income TaxWithdrawal of registration granted earlier u/s 12AA - as per DIT the assessee is not running for charitable purposes, but has been running for the purpose of profit as no major expenditure was for direct benefit of farmers - change in the society’s objectives or the activities carried on by the assessee are in contravention of its objectives - Held that:- The assessee is certifying the seeds on the application of a society or an agent with whom the seed growers have entered into an agreement and who, after securing such certification, sells such seeds to farmers at market price determined by them. The Hon'ble High Court in the assessee’s own case, on similar set of facts (2013 (1) TMI 63 - ANDHRA PRADESH HIGH COURT ) has come to the conclusion that this involves commercial activity as it facilitates trade, commerce or business in the certified seeds being sold by the clients of the society and therefore, the provisions of the proviso to section 2(15) of the Act comes into operation. As examined the nature of the activities carried on by the assessee and held that the activities of the assessee are not for the “advancement of any other object of general public utility” and hence is not for charitable purposes in view of the second limb of the first proviso to section 2(15) of the Act. Respectfully following the decision of the jurisdictional High Court we see no reason to interfere with the order of the DIT (E). - Decided against assessee
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