TMI Blog2022 (5) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... ed objects. But in the present case, the DIT(E) has not pointed out any such violation of the conditions. DIT(E) is solely stated that the assessee is generating huge income by charging premium which over and above and the amount is invested in Fixed Deposit and not transmitted to the government body. As per the Maharashtra Slum Areas (Improvement, Clearance and Rehabilitation) Act, 1971 more specifically Section 3M, the Slum Rehabilitation Authority is utilizing and investing its fund as per the guidelines set out in the said Act. In the present case, the Slum Rehabilitation Authority has not changed its objects or deviated from its objects notified before the Revenue Authority at the time of registration under Section 12A of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stration may be restored by annulling the impugned order. 2. Cancellation of registration with retrospective effect Without prejudice to other Grounds of Appeal, the learned DIT(E); Mumbai, erred in law incancelling registration by order dated 27'* March,2014, with affect from 1stApril,2002. 3. Cancellation of registration based on Proviso to s.2(15) Without prejudice to other Grounds of Appeal, the learned DIT(E), Mumbai erred incancelling registration granted under .12AA/12A with effect from 1stApril,2002, on theground that Proviso to s.2(15) of the Act applied to the facts, whereas the Proviso wasintroduced with effect from A.Y.2009-10. 3. The Slum Rehabilitation Authority (SRA) was granted registratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Director of Income Tax (Exemption) cancelled/withdrawal registration granted u/s 12AA(3) w.e.f. the date on which the registration was granted i.e. 01.04.2009. 4. Being Aggrieved by the order of the Director of Income Tax (Exemption), the assessee is before us. The Ld. AR submitted that the nature and purpose as well as the object of the Slum Rehabilitation Authority had no point of time has changed which has been duly taken note by the Director of Income Tax (Exemption) in para 5. Merely putting the interest income and fees received cannot be the criteria for cancelling the registration with the retrospective effect. The proviso came into effect from assessment year 2009- 10 and the registration was granted to the assessee i.e. Slum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment for rejecting the registration under Section 12AA(3) is that if the trust or institution is carrying out non-genuine activities and the activities beyond the scope of its defined objects. But in the present case, the DIT(E) has not pointed out any such violation of the conditions. The DIT(E) is solely stated that the assessee is generating huge income by charging premium which over and above and the amount is invested in Fixed Deposit and not transmitted to the government body. As per the Maharashtra Slum Areas (Improvement, Clearance and Rehabilitation) Act, 1971 more specifically Section 3M, the Slum Rehabilitation Authority is utilizing and investing its fund as per the guidelines set out in the said Act. The Tribunal in case of Boa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) this court in similar circumstances observed that there is difference between registration and exemption. Referring to Section 13(8) of the Act which was introduced by the Finance Act, 2012 with retrospective effect from 1st April, 2009 this court held that where the receipts are hit by the proviso to Section 2(15) of the Act, the benefit of exemption to its income for the relevant previous year would not be available. Thus income would be brought to tax to secure the interest of the revenue but it does not necessarily result in automatic cancellation of registration. Thus, in the present case, the Slum Rehabilitation Authority has not changed its objects or deviated from its objects notified before the Revenue Authority at the time ..... X X X X Extracts X X X X X X X X Extracts X X X X
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