TaxTMI 
TaxTMI 
2010 (5) TMI 833
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..... Under the facts and circumstances of the case the ld. DIT(Exemption) ought not to have cancelled the registration of the appellant authority." The other grounds are only arguments in support of the above Ground No.1. 3. At the time of hearing before us, it is submitted by the learned counsel for the assessee that the assessee is an autonomous body set up and governed by the provisions of The Gujarat Town Planning and Urban Development Act, 1976 (hereinafter referred to as "GTP Act"). That the assessee was registered under Section 12AA of the IT Act w.e.f. 1-4-2002 vide order dated 23-10-2003 of the DIT(Exemption), Ahmedabad. The DIT(Exemption) vide his order under Section 12AA(3) dated 15-2-2010 cancelled the registration under Section ....
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....2007 upheld the order of the ITAT in the case of CIT Vs. SUDA, wherein registration under Section 12AA was granted to SUDA. He also relied upon the decision of the Hon'ble Apex Court in the case of CIT Vs. Gujarat Maritime Board, 295 ITR 561. In view of the above, it is stated by the learned counsel that the order of the DIT(Exemption) should be quashed. 4. The learned DR, on the other hand, relied upon the order of the DIT(Exemption) and stated that the registration under Section 12AA(3) was granted erroneously and therefore it was withdrawn from the first date of the registration. He submitted that if the registration was granted erroneously the same can be withdrawn from the date from which the registration was granted. He also stated t....
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....he case may be, he shall pass an order in writing cancelling the registration of such trust or institution": From the above, it is evident that once a trust or institution has been granted registration under Section 12AA(3), subsequently, the if Commissioner finds that one of the conditions viz. (i) the activity of such trust or institution are not genuine, and (ii) the activity of the such trust or institution are not being carried out in accordance with the objects of the trust or institution is satisfied, then the Commissioner has power to cancel registration granted u/s.12AA(1) by passing an order in writing. Therefore, registration granted u/s.12AA(1) cannot be cancelled u/s.12AA(3) unless one of the conditions prescribed u/s.12AA(3) ....
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....he object of the institution because the AUDA was recovering the cost of the project by imposing levy on the area developed by it and also by selling plots. View of the DIT(Exemption) would be more evident from para-12 of his order which reads as under: "12. Viewed from this point, AUDA is not spending any money either from its capital or from its receipts for providing charity but whatever is incurred on its permitted activity is fully recovered on a self reliant basis as admitted by them. As detailed in the chart given in Annexure-II, they have huge reserve of saleable plots/sale of which would more than recover the cost. Further, the income expenditure statement furnished with return do not satisfy the requirements of matching principl....
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...., allotted or reserved for a public purpose or for the purpose of the appropriate authority which is beneficial partly to the owners of land or residents within the area of the scheme and partly to the general public shall be calculated in proportion to the benefit estimated to accrue to the general public from such use, allotment or reservation. (2) The owner of each plot included in the final scheme shall be primarily liable for the payment of the contribution leviable in respect of such plot." From the above, it is evident that the assessee is recovering the cost as provided under the "GTP Act", under which the assessee is functioning. Merely because the assessee is recovering the cost of the project, partially or wholly, it cannot be....