TMI Blog2013 (2) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... as to whether the activities of the assessee society/association are genuine or that the same are not being carried out in accordance with the stated objects. In the light of the discussion emerging form the order of the Commissioner action taken by the Commissioner does not fall within the parameters of section 12AA(3) and, therefore, the impugned order is bad in law - in favour of assessee. - I.T.A. No.93 / Ahd/2011 - - - Dated:- 31-1-2012 - SHRI MUKUL KUAMR SHRAWAT, AND SHRI A. K. GARODIA, JJ. Appellant by: S/Shri K.C. Patel, M. K. Patel, Adv., J C Sharedalal CA Respondent by: Shri C.K. Mishra, Sr. DR ORDER PER SHRI A. K. GARODIA, AM:- This is assessee s appeal directed against the order of DIT(E), Ahmedabad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded the issue on this basis that as per the amended provisions of Section 2(15) of the Income tax Act, 1961, assessee is not entitled for registration u/s 12A of the Income tax Act, 1961. In the case of Vidarbha Cricket Association (supra) also, registration was cancelled u/s 12AA(3) of the Act on the basis of amended provisions of Section 2(15) of the Act and under these facts, the issue has been decided by the tribunal in favour of the assessee. The relevant para is para 7, 8 9 of the Tribunal decision which are reproduced below: 7. In this view of the matter, we may now examine the reasons put-forth by the Commissioner in this case to cancel registration already granted to the assessee under section 12A of the Act. In this direction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so to section 2(15) inserted with effect from 1.4.2009. Quite clearly, as we have observed earlier, such an objection cannot be the basis of invoke section 12AA(3) so as to cancel the registration already granted to the assessee under section 12A of the Act. In our considered opinion registration already granted to the assessee could not have been re-visited by the Commissioner on the basis of the reasoning aforesaid, since his power to cancel registration under section 12AA(3) was confined to the examination as to whether the activities of the assessee society/association are genuine or that the same are not being carried out in accordance with the stated objects. In the light of the discussion emerging form the order of the Commissioner i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income tax Act, 1961, we are of the considered opinion that the action taken by DIT(E) does not fall within the permissible limits of Section 12AA(3) of the Income tax Act, 1961 and therefore, the impugned order is bad in law. We also add that we are not commenting on the merits of the issue as to whether the activities of the assessee falls within the meaning of charitable purpose as per Section 2(15) of the Income tax Act, 1961 as amended and we are only deciding this aspect of matter that the order passed by the DIT(E) u/s 12AA(3) is bad in law. This issue raised by the DIT(E) can be examined in appropriate proceedings such as assessment proceedings in the present case and our decision is resting only on the finding that the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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