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2022 (4) TMI 607 - AT - Income TaxExemption u/s 11 - cancellation of registration granted u/s 12AA - assessee society had invested in equity shares with IGL and in Zoom Enterprises Ltd.which investment was not as per the provision of section 11(5) - HELD THAT:- Appellant-society has been granted registration with the stipulation that the provisions of section 11 and 12 of the Act shall apply in the case from the assessment year 2020-21, which means the relevant financial year will be 2019-20 for which the provisions of section 11 and 12 would apply in the case of the appellant-society - A perusal of the impugned order of the Ld. CIT(E) reveals that the Ld. CIT(E) has taken cognizance of the balance sheet of the appellant-society as on 31.03.2018 which shows that the alleged investments made in equity shares were made as on 31.03.2018, which was prior to the grant of registration to the appellant-society. There is no allegation that the appellant-society has committed any violation of the provisions of section 11 and 12 of the Act after grant of registration. The order of cancellation of registration of the appellant-society, on the basis of the investments made prior to grant of registration when there was no such condition imposed on the appellant-society to comply the provisions of section 11 and 12 of the Act, cannot be held to be justified. The impugned order of the ld. CIT(E) is set aside and the registration of the appellant-society is ordered to be restored and the appeal of the appellant-society stands allowed.
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