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2018 (4) TMI 1359 - AT - Income TaxDenying grant of registration u/s 12AA - denial of claim of exemption in earlier year u/s 10(23C)(iiiab) - absence of dissolution clause - seeking registration after a lapse of 39 years - altruistic intent - Held that:- The fact that the activities carried out by the applicant /assessee are charitable in nature been confirmed by us in the earlier part of the order. Merely because the functioning of the applicant/assessee is guided by the directions given by the Government of Punjab, does not take away the charitable character of the objects of the assessee, nor do they effect the genuineness of the activities carried out by the applicant/assessee. Even if the applicant/assessee is working under the directions of the Government as long as the activities carried out by it are in sync with its stated objects, which have been held to be charitable by us in the earlier part of our order and as long as there is no other finding vis-à-vis the genuineness of the activities carried by the assessee, the independence of the assessee in decision making cannot in any way effect the genuineness of the activities carried out by the applicant/assessee. The aforesaid contention of the Ld.CIT(E) is, therefore, dismissed by us. No merit in the contention of the Ld.CIT(E) that in the absence of dissolution clause in the Memorandum of Association of the assessee, the provisions of section 13(1)(c) of the Act were attracted since the said dissolution clause had been amended way back in 2008 itself providing for the transfer of the assets and funds of the society to another society with similar aims and objects in the event of the dissolution of the applicant assessee. - Decided in favour of assessee.
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