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2016 (12) TMI 247 - HC - Income TaxRefusal to renew the registration under Section 80G - Held that:- It is evident that after the omission of the proviso to Section 80G (5) (vi) of the Act there is no requirement of any renewal of registration under Section 80G at all in case the registration was valid as on 01.10.2009, which evidently is the position in the case of both the petitioners since their registration under Section 80G was valid till 31.03.2010. The said position is even accepted by the CBDT in its Circular issued from time to time. The plea of learned counsel for the Income-tax Department that the petitioners having themselves approached the CIT for renewal of their registration and not compelled by the Department to do so, it was open to the Commissioner to have passed an order refusing renewal under Section 80G of the Act does not have any force. The statutory authorities have to exercise their power in terms of what has been given to them by the statute under which they have been created. If the power of renewal of registration has been taken away by the amendment from 01.10.2009, there was no occasion for the CIT to exercise his power merely on the ground that the petitioner had filed an application for renewal of registration, rather he ought to have acted in the same manner as the Director of Income-tax (Exemption), Delhi by his letter dated 09.09.2010, communicating that in view of the amendment to Section 80G (5) (vi) through Finance Act (No.2), 2009 there was no need to seek renewal of the certificate. It is evident from the legal position as obtained from 01.10.2009 that the registration granted under Section 80G would operate in perpetuity, unless specifically withdrawn. For the aforesaid reasons, we hold that the impugned orders dated 29.09.2010 and 27.10.2010 of the CIT-1, Patna are illegal and invalid and they are, accordingly, quashed. Cancellation under Section 12AA (3) - Held that:- This Court is, of the view that the order dated 28.11.2012 of the CIT-1, Patna cancelling the registration of Imarat Shariah Trust under Section 12AA is contrary to law. With regard to the Nyas Samity as to be held to be a trust in existence at least since the year 1958 and in that view of the matter even if it had been created or established for the benefit of a particular community or caste, which is not factually so as held above, it would not be covered by the exclusion provided under Section 13 (1) (b) of the Act from the benefit of the provisions of Section 11 or 12 of the Act. Thus, for the aforesaid reasons, the show cause notice dated 13.12.2010 in the case of the petitioner, Nyas Samiti as also the show cause notice. Revision u/s 263 - Held that:- On a consideration of the order of the CIT, while reference to the fact that the assessing officer has not considered the refusal of renewal of the exemption under Section 80G of the Act and the show cause notice for cancellation of registration under Section 12AA of the Act can be considered as an attempt to overreach and ignore the stay order granted by this Court but the same would not apply to the remaining part of the order where he has set aside the order of the assessing officer by pointing out the lacuna during the assessment process. This Court does not agree with the submission of learned counsel for the petitioner that merely because it has been granted exemption under Section 12AA of the Act, therefore, nothing is required to be done during the assessment proceeding except to accept the return. For the aforesaid reasons, while the CIT-1, Patna is warned not to try to overreach the orders of this Court in the future, but at the same time it is not a fit case for setting aside the order dated 27/29.3.2014. The assessing officer, however, while making assessment should keep in mind the fact that both the impugned order dated 28.09.2010 and the show cause notice dated 13.03.2010 have been quashed by this Court and accordingly decide the matter in accordance with law keeping the same in view. It shall also be open to the petitioner to take such plea with regard to sale of medicines, commissions, Naivedya and Prasad as per the principles of law laid down by the Courts.
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