TMI Blog2022 (4) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT(E) has taken cognizance of the balance sheet of the appellant-society as on 31.03.2018 which shows that the alleged investments made in equity shares were made as on 31.03.2018, which was prior to the grant of registration to the appellant-society. There is no allegation that the appellant-society has committed any violation of the provisions of section 11 and 12 of the Act after grant of registration. The order of cancellation of registration of the appellant-society, on the basis of the investments made prior to grant of registration when there was no such condition imposed on the appellant-society to comply the provisions of section 11 and 12 of the Act, cannot be held to be justified. The impugned order of the ld. CIT(E) is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bserved that as per the balance sheet of the appellant-society as on 31.03.2018, the society had invested in equity shares with IGL of ₹ 5,43,35,000/- and in Zoom Enterprises Ltd. of ₹ 43,25,000/- which investment was not as per the provision of section 11(5) of the Act. The ld. CIT(E), therefore, held that section 13(1)(d) was attracted as provisions of section 11(5) had been violated. The ld. CIT(E), therefore, cancelled the registration of the appellant-society invoking section 12AA(4) of the Act. The ld. counsel for the appellant-society has further submitted that the ld. CIT(E) has not followed the prescribed procedure for cancellation of registration as provided u/s 12AA of the Act. The ld. counsel has further submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has taken cognizance of the balance sheet of the appellant-society as on 31.03.2018 which shows that the alleged investments made in equity shares were made as on 31.03.2018, which was prior to the grant of registration to the appellant-society. There is no allegation that the appellant-society has committed any violation of the provisions of section 11 and 12 of the Act after grant of registration. In view of this, the order of cancellation of registration of the appellant-society, on the basis of the investments made prior to grant of registration when there was no such condition imposed on the appellant-society to comply the provisions of section 11 and 12 of the Act, cannot be held to be justified. The impugned order of the ld. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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