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2019 (8) TMI 854 - HC - Income TaxCancellation of Registration u/s 12AA - charitable activity us 2(15) - cancellation on the ground that in the Board’s meeting the association reiterated its emphasis on the undisputed fact that being a catholic school run by the assessee association, the members of which are Christians, it has concern towards the Christians of Patna - HELD THAT:- Commissioner has got mixed up in between the stipulations warranting exercise under Section 12AA(3) and Section 13(1) (b) in so far as it dis-entitles a trust or a charitable institution to the exclusion from the total income of the previous year, any income, if the same is used for benefit of any particular religious community or caste. It is correctly canvassed by Mr. Pathy that any such issue can be a subject matter of assessment proceeding but certainly cannot lay a foundation for cancellation of registration of the institution altogether unless the two prerequisites as present in sub-Section 3 of Section 12AA are satisfied. Having considered the matter in its entirety we are in no doubt to hold that the order dated 22.07.2015 of the Tribunal in confirming the order dated 28.06.2012 of the CIT to cancel the registration of the petitioner granted u/s 12AA is an order passed de-hors, the statutory provisions of Section 12AA(3) and since there is no satisfaction recorded by the CIT either that the activities of the petitioner was not genuine or that it was not being carried in accordance with the objects for which it was set up, the conclusion drawn by the authorities in the order impugned in reference to the provision of Section 13(1) (b), is a confirmation of perversity. - Order to cancel the registration of the petitioner u/s 12 AA is quashed and set aside. - Decided in favour of assessee.
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