TaxTMI 
TaxTMI 
2015 (5) TMI 853
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....ct'). 2. The respondent-assessee - M/s. Kodava Samaja was granted registration under Section 12A of the Act on 27.6.1980 by an order passed by the Commissioner of Income Tax. Subsequently, a notice came to be issued on 22.11.2011 as to why registration under Section 12A of the Act should not be revoked by invoking the provisions of Section 12AA(3) of the Act by the authorities. In response to the said notice, the assessee filed its written submission on 2.12.2011 and contested the matter. The authorities took note of the fact that the accounts for the year ended 31.3.2009 shows receipts by way of rentals and other income to an extent of Rs. 75,92,080/- and excess of income over expenditure of Rs. 63,61,403/- for the assessment year 2....
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....ng Stock 189110 292988 TOTAL 37820941 44031674 3. The Director of Income Tax (Exemption) considering the entire material on record, by his order dated 15.12.2011, exercising his powers under the provisions of Section 12A of the Act has cancelled the registration observing that on examination of records shows that the Samaja has earned profit of Rs. 63,61,403/- and 82,54,493/- for the assessment years 2008-09 and 2009-10 respectively. Under various heads, the Samaja has earned huge profits and after taking note of the change in definition of Section 2(15) of the Act which came into effect from 1.4.2009, it was held that the activity carried on by the assessee is in the nature of trade, commerce or business or any ....
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....asis are not charitable activities' and recorded a perverse finding? (ii) Whether the Tribunal committed an error in holding that DIT (exemption) has not recorded its finding with regard to genuineness of the activities of the Trust or that the activities of the assessee were not in accordance with the objects of the Trust, without appreciating that running of liquor bar and restaurant was not in accordance with the objects of the Trust and the condition under Section 12AA(3) of the Act is satisfied for cancellation of registration and consequently recorded a perverse finding? 6. The learned Counsel for the revenue assailing the impugned order contended that the definition of 'charitable institution' has undergone a change....
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....der Section 12A of the Act. Now the said registration is cancelled by invoking the power conferred under the provisions of Section 12AA(3) of the Act. Therefore., it is necessary to find out under what circumstances the registration granted earlier could be cancelled. Section 12AA(3) of the Act reads as under: "[(3) Where a trust or an institution has been granted registration under clause (b) of sub-section (1) [or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No 2) Act, 1996 (33 of 1996) and subsequently the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or i....
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....the objects of the trust or institution and therefore, the two conditions stipulated under the provisions of sub-section (3) of Section 12AA of the Act, which empowers the authority to cancel the registration, do not exist in the present case. 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. In fact, sub-section (8) of section 13 of the Act which is introduced by Financial Act, 2012 which came into effect from 1.4.2009 categorically provides that, nothing contained in Section 11 or 12 shall operate so as to exclude any income from the total income of the previous year or any receipt there of. If the....