9911796707
TMI Blog2012 (3) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... t' hereinafter) w.e.f. 2009-10. 3. The brief facts of the case are that the assessee authority was granted registration under section 12AA of the Act w.e.f. 01.04.2003. The CIT, in order to examine the claim of the assessee in the light of change in definition of 'charitable purpose' under section 2(15) of the Act, issued a notice to the assessee for withdrawal of registration w.e.f. Assessment Year 2009-10 on 17.10.2011 under section 12AA(3) read with Section 293C of the Act. The CIT, after considering the assessee's submission, has withdrawn the registration under section 12AA of the Act w.e.f. 2009-10 as under :- "In regard to para-wise reply to this office observations, briefly mentioned in para 5.2 above, the assessee has mainly con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere held to be not for 'charitable purpose' as per then definition u/s 2(15). ITAT, Amritsar in Jalandhar Development Authority Vs. CIT (ITA No.562/Asr/2008) has discussed various case laws and upheld the order of CIT, Jalandhar who had rejected the registration of Jalandhar Development Authority u/s 12AA holding that the authority is not for 'charitable purpose' as mentioned in sec.2(15). This position of law has changed considerably by insertion of proviso to Section 2(15) by Finance Act, 2008 which has considerably restricted and limited the exemption claimed by assesses who's "charitable purpose" falls in the fourth limb i.e. any other object of general public utility. In its reply dated 14-11-2011, the assessee has tried to diffe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant finding of the I.T.A.T. is reproduced as under :- "6. It is the legality of the aforesaid order which is being challenged before us in this appeal. One of the preliminary objections of the appellant is that there is no provision in section 12AA to enable the CIT to cancel the registration earlier granted under section 12A of the Act. We are of the view that the abjection is well founded. Section 12AA(3) provides that where a trust or an institution has been granted registration under clause (b) of sub-section (1) thereof and subsequently the CIT is satisfied that the activities of the trust were not genuine or they were being carried out not in accordance with the objects of the trust, he shall pass an order in writing cancelling t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from 01.10.2009. Circular No.5 of 2010 issued by the CBDT on 03.06.2010, (2010) 324 ITR (Statutes) 293 explains the provisions of the said Finance Act. Paragraph 57 explains the provisions of section 293C and the same is as under :- "57. Power to withdraw approvals 57.1 Under the existing provisions of Income-tax Act, an approval is required to be granted by Income-tax authority for availing of various incentives by the assessees. While some provisions of Income-tax Act specifically contain provisions for withdrawal of approval but in many cases there is no such specific provisions containing power of withdrawal. 57.2 In order to provide such explicit provisions for power to withdraw approval, a new section 293C has been inserted to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not necessary to multiply instances. Section 293C uses the expression "approval". It cannot therefore apply to a case of registration. Therefore, the section cannot infuse validity to the impugned order. 8. For the above reasons we uphold the preliminary objection raised by the assessee and annul the impugned order which has been passed without jurisdiction. The appeal of the assessee is allowed with no order as to costs." 5. The Ld. Authorised Representative drew our attention on the show-cause notice of which copy has been placed at page nos.5 to 10 of the assessee's Paper Book and submitted that the CIT issued show cause notice under section 293C of the Act. Thus, the CIT issued show-cause notice under section 293C of the Act. On ide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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