TMI Blog2011 (3) TMI 1635X X X X Extracts X X X X X X X X Extracts X X X X ..... ties of the society are not genuine or are not being carried out in accordance with the objects of the society, hence the order passed by the CIT, canceling the Registration is void ab initio. 04. Because the Commissioner of Income Tax has erred on facts and in law in arbitrarily holding that the objects of the trust are not charitable whereas, the action u/s 12AA(3) can only be invoked when the activities are not in accordance with the objects. The order passed by the Commissioner of Income Tax cancelling the registration is erroneous, misconceived, bad in law and be quashed. 05. Because the order passed by the CIT-I be cancelled and the CIT-I be directed to restore the registration granted u/s 12A of the Act, 1961. 3. From the above grounds, it would be clear that the only grievance of the assessee in this appeal relates to the cancellation of registration already granted to the assessee under Section 12A of the I.T.Act,1961. 4. The facts of the case, in brief, are that the assessee is a society registered under the Societies Registration Act,1860 and was granted registration under Section 12A of the I.T.Act, 1961 w.e.f. 1.4.1990 vide order dated 9.2.1999. Du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e going in for amended Smriti Patra, the assessee Society was under a bonafide belief that no permission was required and at the same time only compliance with the Registrar of Society was to be done, said clause does not deal only with any one particular community. Needless to mention that there cannot be a particular community consisting of all different class of persons. A community is a section of public and the society created for giving medical aid, social welfare, uplifting of poor members of a particular community have all been held to be charitable and eligible of exemption. 4.1 The ld.CIT, after considering the submissions of the assessee, observed that the assessee sidestepped the central issue raised in the show cause notice and had not given any reply for getting its objects changed without permission. He further observed that in the revised object the clause 7 is meant for minorities alongwith the other communities, which is not in a charitable nature. He also observed that the assessee had not maintained separate account with regard to LIC commission (professional income). Accordingly, registration already granted under Section 12A of the I.T.Act was withdrawn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee changed the objects, therefore, the ld.CIT was fully justified in withdrawing the registration by invoking the provisions of section 12AA(3) of the I.T.Act. 8. We have considered the submissions of both the parties and gone through the material available on the record. In the present case, it appears that the ld. CIT cancelled the registration already granted to the assessee by invoking the provisions of section 12AA(3) of the I.T.Act on two grounds- (i) The assessee had not maintained separate books of accounts in respect of LIC commission. (ii) As per clause 7 of the memorandum, the object of the assessee was meant for welfare and progress of persons, who are deaf and dumb, handicapped, blind, widows, old aged, unemployed having no-one to support, Scheduled Castes, Scheduled Tribes, minorities, backwards, and exploited persons. The above clause represents a particular community. As regards to the first objection of the ld.CIT is concerned, the assessee vide reply dated 6.10.2010 categorically stated to the ld.CIT that separate books of accounts had been maintained in respect of the income from LIC commission. Those books were produced before the ld.CIT and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... object is substantially for imparting education in various fields to the poor students and the objects were not restricted to the benefit of only the students of a particular religious minority. It is also observed that the SC/ST and OBC categories are mainly Hindus and including the word minority students has made the object larger to cover the poor students of all communities. It would not also proper to give a restricted meaning to the words minority to mean only the students of a particular minority community because the minority students may belong to even ethnic and cultural minority. Thus, in our considered opinion, the society is for general public utility and its objects are charitable in nature as per the provisions of Section 2(15)of the I.T.Act. We are, therefore, of the considered opinion that the reliable on Explanation 3 to Section 80G of the I.T. Act by the learned CIT is not correct and, therefore, his decision to refuse registration to the assessee society under Section 12AA of the Act cannot be sustained. The Revenue is directed to grant registration to the society under section 12AA of the Act. The appeal of the assessee is accordingly allowed. 8.1 We, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration granted to the assessee society. Cancellation/withdrawal of registration by the CIT amounts to reviewing its earlier order. The CIT has no power to review its own order, except on twin conditions specified in sub-s. (3) of s. 12AA. Therefore, the cancellation of registration by the CIT amounts to reviewing its earlier order passed under s. 12AA(1)(b)(i). Under the IT Act, there is no provision that may indicate that the CIT has power to review its earlier order granting registration under S.12AA(1)(b)(i) except the two conditions laid down in sub-s.(3) of S.12AA. The action taken by the CIT does not fall within the parameters of sub-s. (3) of S.12AA. Having once granted the registration, the CIT becomes functus officio and the impugned order passed under S.12AA(3) is illegal and unsustainable. In view of the above, the order of the CIT passed under s.12AA(3) is set aside. 8.2 In the instant case also, the ld.CIT without bringing on record that the activities of the assessee were not genuine or were not being carried out in accordance with the objects of the assessee-society, cancelled the registration which amounts to reviewing of his earlier order when the regist ..... 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