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2019 (12) TMI 496 - AT - Income TaxExemption u/s 11 - Contiued registration u/s 12AA denied - CIT(E) granted registration for the assessment years 1998-99 to 2008-09 and in the same order from assessment year 2009-2010 denied to continue the registration u/s.12AA - HELD THAT:- In the present case, in the same order, the ld CIT(E) granted registration to the assessee from assessment year 1998-99 to 2008-09 and also denied continuance of registration w.e.f 2009-10 onwards without affording an opportunity to the assessee regarding the doubts arisen in the minds of the CIT(E). Therefore, keeping in view the fact that the assessee has already move upto the Tribunal in three rounds of proceedings seeking grant of registration u/s.12AA of the Act, we are of the considered view that it would be a great injustice to the appellant if the case is restored to the file of the CIT(E) for third time. Thus, we decline to accept the prayer of ld CIT DR for restoring the matter to the file of the CIT(E) for fresh consideration. Income earned by the assessee from commercial lease rent, which is the only point of denying the continuance of registration from assessment year 2009-2010 is not a sustainable ground for dis-continuing the registration already granted to the assesse. When the registration u/s.12A of the Act has been granted to the appellant and ld CIT (E) is satisfied that the activities of the assessee trust falls within the ambit of charitable and OF general public utility and on the same basis, he has granted registration u/s.12A of the Act to the appellant from the assessment years 1998-99 to 2008-09. The barriers created by the CIT(E) from 2009-2010 onwards, where he denied to continue the same registration is also not sustainable on this count that the assessee was not provided proper opportunity of hearing before passing such order denying continuance of registration as per mandate of sub-section(3) of Section 12AA of the Act. We dismiss the observation of ld CIT(E) recorded for the purpose of restricting the registration u/s.12AA of the Act from 2009-2010 onwards. CIT (E) has granted registration u/s.12A of the Act, then, same is required to be continued till it is cancelled by way of following the procedure provided in sub-section (3) & (4) of Section 12AA of the Act and without following such procedure, the registration cannot be restricted or upto the specified time and cannot be discontinued by way of cancelling the same for subsequent period in the same order. Therefore, we set aside the order of ld CIT (E) and hold that the registration granted for the assessee w.e.f. A.Y. 1998-99 to 2008-09 is also continued direct him to grant registration from 2009-10 onwards. Hence, the grounds of appeal of the assessee are allowed in the terms as indicated above,.
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