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2016 (12) TMI 1423 - ITAT DELHIWithdrawal of registration u/s 12A - whether the object would fall within the ambit of the fourth limb of definition of Charitable purpose u/s 2(15) viz advancement of any other object of general public utility? - Held that:- The appellant is a society registered under the societies registration act in the year 1997 and has been granted the registration under section 12 A of the income tax act, w.e.f. 26/9 /2005. Main object of the assessee is to promote and develop holiday ownership and time-share concept in India. The appellant has at present 29 members as stated by the Ld. Commissioner of income tax appeal who are all hoteliers and the assessee is carrying on the activity of conducting consultancy services and taking membership fees from all these members for the purpose of its objects. This is not the 1st year of the assessee but it has been granted registration since 26th of September 2005 Without adjudicating on the issue whether the assessee is carrying on any trade, commerce or business or not, the issue is squarely covered in favour of the assessee because there is no change in the activities of the trust for the impugned assessment year and further the fact is not disputed by the revenue that registration under section 12 A of the appellant trust still remains in the force, we are not inclined to uphold the order of the lower authorities. Furthermore the case of the assessee is also squarely covered by the decision in case of director of income tax (exemptions) versus Khar Gymkhana [2016 (6) TMI 489 - BOMBAY HIGH COURT] wherein considered the issue of registration of trust vis-a-vis is the above circular issued by the CBDT and held that in view of the above circular the assessee was entitled to continue registration under section 12 A of the income tax act. Therefore, we allow ground No. 2 and 3 of the appeal of the assessee, in view of the circular issued by the CBDT holding that assessee is entitled to registration under section 12 A of the income tax act and its income shall be governed by the provisions of section 11 and 12 of the income tax act, 1961. - Decided in favour of assessee
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