TaxTMI 
TaxTMI 
2012 (11) TMI 656
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....sues are covered vide following grounds:- 1. The Learned Commissioner of Income Tax, Gandhinagar has erred in law as well as on the facts of the case of the Appellant by invoking provisions of Section 12AA(3) of the Income Tax Act, 1961 for canceling the registration granted to the Appellant u/s.12AA of the Income Tax Act, 1961. 3. The Learned Commissioner of Income Tax, Gandhinagar has erred in law as well as on the facts of the case of the Appellant by canceling registration granted u/s.12AA to the Appellant on the ground that, in view of amendment of definition of charitable purpose u/s.2(15) of the Income Tax Act, 1961 by the Finance Act, 2008 and Finance Act, 2010, the Appellant is not a charitable organization and he....
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.... Services charges for maintenance of different infrastructure facilities such as Roads, Street lights, and other amenities in its various estates. (vi) For providing facilities of Bank, Post office, Godown, Canteen, Telephone Exchange, Police Station etc. rent is recovered from them and shown as rent of buildings. (vii) Income from sale of grass and jungle cuttings. (viii) Recovery of water supply charges (ix) Recovery of Non-agricultural charges from allottees. (x) Recovery of Administrative charges for transfer and allotment of land/shed/property. (xi) Development charges (NOC Land) for commercial activities. (xii) Recovery of drainage cess (xiii) Recovery of 30% of t....
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....ived profit out of such business like activities. In his opinion, there was no free services to the public. According to him, there was no charity meant for public which could qualify within the meaning of section 2(15) of I.T. Act. In the impugned order, it was mentioned that an amendment took place in the provisions of section 2(15) of I.T. Act with retrospective effect from 1/4/2009. On account of those amendments it was intimated through a show-cause notice to the assessee that it ceases to be a charitable organization which was earlier covered under the fourth limb of the charitable purposes, i.e. advancement of any other object of journal public utility. 4.1. In compliance of show-cause notice, mainly it was contended that the asse....
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....organization and the objects have lost the character of charity therefore registration was cancelled, and held that not eligible for the benefits prescribed under sections 11 and 12 of the Act. 5. Being aggrieved the said order of the ld.Commissioner is now challenged before us. 6. From the side of the assessee, Ld.ARs Mr. S.N.Soparkar and Mr.M.G.Patel appeared and from the side of the Revenue Ld.DR Mr. S.K.Gupta appeared. At the outset, following decisions have been cited by ld.ARs. (i) ITAT "D" Bench Ahmedabad in the case of Gujarat Industrial Security vs. DIT (Exemption) in ITA No.902/Ahd/2010, order dated 30.12.2011. (ii) ITAT "A" Bench Ahmedabad in the case of Ahmedabad Urban Development Authority in ITA No.754/....
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....' Bench Chennai in I.T.A.No. 987/Md/2010 dated 19.09.2011 which are directly on the issue in hand. Thus, following these Tribunal orders of Ahmedabad Bench and Chennai Bench mentioned hereinabove and in the facts and circumstances of the present case and in the absence of any violation of Section 12AA(3) of the Act, the registration granted u/s 12AA cannot be cancelled. Therefore, we cancel the order of DIT(Exemption) dated 22.01.2010 and direct the DIT (Exemption) to restore the order of registration granted u/s 12AA of the Act." 8. From the case of Ahmedabad Urban Development Authority (supra), the relevant portion is reproduced below:- "7. In view of the above, we are satisfied that none of the conditions as prescribed under ....