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2017 (8) TMI 175 - AT - Income TaxGrant of registration u/s. 12AA(1)(b)(ii) - quantum of surplus generated by the assessee during the course of charitable activities - Held that:- Deemed registration has already been granted to the assessee in view of the fact that the original application made by the assessee was not disposed of by the Commissioner of Income Tax. The Commissioner of Income Tax while considering second application of the assessee for grant of registration, should have examined the objects of the trust and the activities being carried out by the assessee to achieve those objects. The Commissioner of Income Tax misdirected the course of enquiry and concentrated on the surplus generated, leaving aside the objects and activities carried out by the assessee. Generation of surplus while carrying out charitable activities would not disentitle the assessee for registration u/s. 12A of the Act. We set aside the impugned order and direct the Commissioner of Income Tax to grant registration u/s. 12AA of the Act to the assessee. Appeal of the assessee is allowed.
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