TMI Blog2012 (11) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... No.36/Ahd/2011 - - - Dated:- 20-1-2012 - SHRI MUKUL Kr.SHRAWAT AND SHRI B.P.JAIN, JJ. Appellant by : Shri S.N.Soparkar, A.R. Respondent by : Shri Awiji Rakshit Sr. D.R. ORDER PER SHRI MUKUL Kr. SHRAWAT, JUDICIAL MEMBER : This is an appeal at the behest of the assessee-appellant emanates from the order of Commissioner Gandhinagar dated 7/12/2010 passed u/s.12AA(3) of the IT Act. Several grounds have been raised, however revolve around a single issue a cancellation of registration granted u/s.12AA of the IT Act. 2. The ld.Commissioner has observed that the activity of the appellant relates to charge of fees from the users of the see-port for the facilities such as port infrastructure facility, marine servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registration as follows:- 11. However, if may be clarified that aforesaid decisions and decisions cited by the assessee found mentioned earlier in this order are based on the provision of definition of Charitable Purpose as per section 2(15) of the IT Act. Whereas the show cause notice presently issued is based on the definition of Charitable Purpose as Amended by the Finance Act 2010 with applicability with retrospective effect from 1-4-2008, particularly the insertion of proviso which provides that in the case where the gross receipts from all activities in the nature of trade, commerce or any activity rendering services in relation to any trade, commerce for a cess or any consideration, irrespective of the nature of use of appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities which are falling in the definition of Charitable Purpose or not and it is not so, the CIT can cancel such registration w.e.f. 1-4-08 even if registration is already granted earlier to such entity/Trust. 13. Accordingly, I am satisfied that the activity of the Gujarat Maritime Board were not carried out in accordance with the object of institution as per definition of charitable purpose for which registration was granted on 15-6-2005 w.e.f. 1-4-2002 in view of the amendment made in the definition of charitable purpose w.e.f 1-4-2008 by the Amendment by the Finance Act 2010 as the said institution is not eligible for registration thereafter as the total receipts for the year under consideration is more than Rs.10 lakhs as pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up to the year ended 31.03.2008 in which the assessee has used 85% of the funds collected. There is nothing on record that the assessee has violated any conditions laid down u/s 12AA(3) of the Act. Reliance was placed on the decision of ITAT Ahmedabad A Bench in I.T.A.No. 754/Ahd/2010 dated 21.05.2010 and the decision of ITAT A Bench Chennai in I.T.A.No. 987/Md/2010 dated 19.09.2011 which are directly on the issue in hand. Thus, following these Tribunal orders of Ahmedabad Bench and Chennai Bench mentioned hereinabove and in the facts and circumstances of the present case and in the absence of any violation of Section 12AA(3) of the Act, the registration granted u/s 12AA cannot be cancelled. Therefore, we cancel the order of DIT(Exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e DIT (Exemption) was justified in canceling such registration by invoking the power under Section 12AA(3). 4. Having heard the submissions of both the sides, the provisions of section 12AA(3) prescribes that once a trust or an institution has been granted registration u/s.12AA(3) and subsequently if the Commissioner finds that one of the condition, viz. the activity of the trust is not genuine or that the activity of trust not been carried out, then the Commissioner has power to cancel the registration granted u/s.12AA(1) of IT Act. In the above cited decision of Ahmedabad Urban Development (supra), it was held that when under the Act a specific provision for cancellation of registration is prescribed and the cancellation is possible un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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