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2014 (8) TMI 834 - AT - Income TaxValidity of cancellation of registration granted u/s 12A – Held that:- The assessee trust was granted registration u/s.12A of the I.T. Act - CIT cancelled the registration granted earlier on the ground that the assessee trust is running the hospital on commercial basis with profit motive and is taking undue advantage of tax concession given by the statute to the institutions engaged in genuine charitable activities - once registration is granted to the trust/institution and if subsequently the AO finds during the assessment proceedings that the income of the charitable trust is applied directly or indirectly for the benefit of the persons referred to in section 13(3), then he has ample power to deny exemption to that extent u/s.13(1)(c) of the I.T. Act – relying upon Modern Defence Shikshan Sansthan Vs. CIT [2007 (2) TMI 255 - ITAT JODHPUR] - CIT is not justified in cancelling the registration granted earlier to the assessee trust u/s.12A of the I.T. Act, 1961 – Decided in favour of Assessee. Award of cost u/s 254(2B) – Held that:- CIT has passed an order u/s.12AA(3) of the Act during the course of discharge of her duty as CIT - While discharging her duty, her action might have caused some hardship to the assessee due to error of judgement but it does not warrant levy of cost on the department – relying upon Pooran Mal Vs. Director of Inspection (Investigation), Income Tax, New Delhi and others [1973 (12) TMI 2 - SUPREME Court] - even though the innocent is likely to be harassed by a raid for the purpose of search and seizure that cannot be helped - there is no such action of search and seizure which causes serious invasion in the privacy of the person - Commissioner was discharging her quasi-judicial duty - there is nothing on record to suggest that the action of the CIT was malafide. Approval u/s 80G(5)(vi) – Held that:- The trust was granted approval u/s.80G(5)(vi) of the I.T. Act. on 30-12-2009 for the period from 23-02-2009 to 31-03-2011 and valid in perpetuity unless specifically withdrawn in view of Board’s Circular No.07/2010 order dated 27-10-2010 - CIT subsequently withdrew the approval granted u/s. 80G(5)(vi) of the I.T. Act on the ground that the registration granted earlier u/s.12AA has been cancelled by her – as the matter relating to the registration u/s.12A of the I.T. Act is already remitted back to the CIT, the approval granted earlier u/s. 80G(5)(vi) of the I.T. Act to the assessee trust is also remitted back – Decided in favour of Assessee.
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