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2014 (5) TMI 733 - ITAT MUMBAICancellation of registration u/s 12A of the Act – Scope of the term charitable purpose u/s 2(15) of the Act - Advancement of any other objects of general public utility – Held that:- Following Ghatkopar Jolly Gymkhana v. DIT (E) [ 2014 (4) TMI 201 - ITAT MUMBAI] - the action of the CIT(A) relying upon the newly inserted proviso from 01.04.2009 in cancelling the registration of the trust is not correct or justified - The only effect will be that the Assessee will not be entitled for exemption or tax benefits which otherwise would have been available to it being registered as charitable institution, for the relevant year during which its income has crossed the limit of Rs.10.00 lacs - merely because the income of the assessee has crossed prescribed limit of Rs. 10 lakhs, that itself cannot be ground for cancellation of its registration invoking section 12AA(3) of the Act - for the previous year, during which the gross receipt income crosses limit of Rs.10.00 lacs, the trust will not get exemption or benefit of its being charitable in nature despite its carrying out charitable activities but, it will get benefit if it is registered as charitable institution and income from business activities, as mentioned in first proviso to section 2(15), does not cross limit of Rs.10.00 lacs – thus, the order of the DIT(E) is set aside and the registration to the assessee council granted u/s 12A of the Act is restored – Decided in favour of Assessee.
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