TMI Blog2016 (2) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... institution are not genuine, (b) The activities of trust or institution not being carried out in accordance with the object of the trust or institution. Only on those two conditions being satisfied, the registration granted under Section 12A of the Act could be cancelled by the authorities. It is not in dispute that there is no violation of the said two conditions by the assessee. The activities carried on by the assessee is a genuine one.The registration granted is cancelled in view of the amendment of first proviso to Section 2(15) of the Act. That is not a ground specified in the Statute for cancellation of the registration. - Decided in favour of assessee. - I.T.A. No. 301 of 2015 - - - Dated:- 12-2-2016 - N. K. Patil And S. Suja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... general public needs dedicated buses for their travel and these are charged on commercial basis. It is also seen that BMTC is providing Advertisement space on buses to the private sector charging substantial fee, which activity is nothing but commercial activity and there is a deviation from its predominant object of providing transport service? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the assessee is entitled for registration under section 12A of the Act, even when the KSRTC under the head Nonoperating revenue - Non-traffic Revenue, has accounted a receipt of ₹ 91,47,94,000/- as miscellaneous income which are mainly from advertisement and transportation of lug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tration under section 12A, the power to deny the benefit of exemption to such assesses vests only with the Assessing Authority under section 13(8) rather than the registering authority under section 12AA (3) by way of cancellation of registration? (7) Whether, on the facts and in the circumstances of the case, the Tribunal was right in following the judgment of Hon'ble High Court in the case of the KIADB wherein it is held that the two conditions stipulated under section 12AA(3), which empowers the registering authority to cancel registration, do not exist in the case of the assessee? (8) Whether, on the facts and in the circumstances of the case, the Tribunal was right in following the judgment of Hon'ble High Court in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax (Exemption) and another Vs. Karnataka Industrial Area Development Board). Therefore, they submitted that following the said judgment and in terms of the same, this appeal may also be dismissed holding that substantial questions of law are answered in favour of assessee and against revenue. 4. The above submission made by learned counsel for both the parties is placed on record. 5. Following the judgment of the Division Bench of this Court dated 7th November 2014 in ITA No. 261/2013 (The Director of Income Tax (Exemption) and another Vs. Karnataka Industrial Area Development Board) and in terms of the said judgment and for the reasons stated therein, this appeal is dismissed holding that there is no merit in the appeal and answering ..... X X X X Extracts X X X X X X X X Extracts X X X X
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