TMI Blog2015 (12) TMI 698X X X X Extracts X X X X X X X X Extracts X X X X ..... viz , the findings of the learned Commissioner of Income Tax to the effect that the activities of the assessee are not genuine or the activities are not being carried out in accordance with the objects on the basis of which registration under sect ion 12A of the Act was granted to it , have also not been fulfilled in this case. The learned Commissioner of Income Tax has nowhere given a finding in this regard. It is not the case of the Commissioner of Income Tax that the activities of the assessee are not genuine or not being carried out in consonance with the objects of the assessee. In this view also, the act ion of the learned Commissioner of Income Tax in cancelling the registration is not as per law. - Decided in favour of assessee. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in nature in view of the proviso appended to the sect ion. In view of these findings, the learned Commissioner of Income Tax cancel led the registration granted to the assessee under sect ion 12A of the Act . 5. Aggrieved by this order of the learned Commissioner of Income Tax, the assessee has come up in appeal before us. The only grievance of the assessee is that the cancelling of registration under sect ion 12AA(3) of the Act is not as per law. 6. The first content ion raised by the learned counsel for the assessee was that the only reason given by the learned Commissioner of Income Tax while withdrawing the registration granted under sect ion 12A of the Act is the amendment brought on the Statute by the Finance Act , 2008 in sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Commissioner of Income Tax, the assessee has certainly lost its character of being a charitable organization. Therefore, the order passed by the learned Commissioner of Income Tax is valid and as per law. 8. We have heard the learned representatives of both the parties, perused the findings of the authorities below and considered the material available on record. The undisputed facts of the case are that the assessee is a society registered under sect ion 12AA of the Act , vide order passed by the learned Commissioner of Income Tax, Patiala dated 28.9.2005, the registration so granted to the assessee has now been withdrawn. From the perusal of the order of withdrawal of registration, we see that the only issue on the basis of wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he institution are not being carried out in accordance with the objects of the trust or the institution. Section 12AA(3) specifically provides that when the CIT is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution . It is not even the case of the CIT that the activities of the assessee trust arc not genuine or that the activities of the assessee are not being carried out in accordance with the objects of the assessee trust. The case of the CIT rests on the first proviso to Section 2(15) coming into play on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n only be invoked only when (i) that the activities of the trust are not genuine, and ( i t ) that the activities of the trust or the institution are not being carried out in accordance with the objects of the trust or the institution. ii) The considerations of first proviso to section 2(15) have no role to play in the matters relating to registration of a trust or institution under section 12A or 12AA -whether in respect of granting or declining of a registration or in respect of cancellation. iii) What is clear from the riders in the definition of charitable purposes' is that rider set out therein, under first proviso to section 2(15), can only come into play on year to year basis and not in absolute terms. The safeguard a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning the benefits of exemption under section 11 on that count, on year to year basis, notwithstanding the status of registration. vi) The disentitlement for exemption under section 11, as a result of the activities of an assessee being held to be not for charitable purposes under section 2(15) read with provisos thereto, is in respect of entire income of the assessee trust or institution but only for the assessment year in respect of which the first proviso to section 2(15) is triggered. vii) If the status of registration is to be declined to an assessee only on the ground that some of the objects may be hit by the first proviso to section 2(15) but the assessee's receipts from such activities do not exceed specified thresho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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