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2022 (10) TMI 1108 - AT - Income TaxExemption u/s 11 - CIT cancelled the registration issued to the assessee u/s 12A - AO disallowed exemption as assessee has received substantial amount as donation which in turn are transferred to the three parties and the redonation was compulsion to the assessee as per the terms and conditions of getting donations from the donors - HELD THAT:- We find the CIT(A) upheld the action of the Assessing Officer. It is the submission of assessee that since the Tribunal has restored the registration u/s 12A which was cancelled by the PCIT and since the PCIT has passed consequential order by granting registration u/s 12A, therefore, the denial of exemption u/s 11 is not justified. AO in the instant case denied exemption u/s 11 for the impugned A.Y and following this order he also rejected the claim of benefit u/s 11 for the A.Y 2016-17. After the orders passed by the AO for the A.Ys 2015-16 and 2016-17, the Pr.CIT cancelled the registration issued to the assessee u/s 12A. We find on appeal by the assessee, the Tribunal [2021 (9) TMI 1435 - ITAT HYDERABAD] restored the registration u/s 12AA of the I.T. Act and the CIT has given the appeal effect and has granted registration u/s 12AA of the I.T. Act. Under these circumstances, we deem it proper to restore the issue to the file of the Assessing Officer with a direction to grant one more opportunity to the assessee to substantiate his case and decide the issue as per fact and law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.
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