2015 (2) TMI 1133

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....e under Section 12AA of the Act vide order dt.19.12.2000. 2. The facts of the case, briefly, are as under :- 2.1 The assessee is a public sector undertaking of the State Government of Karnataka, set up to fulfill its constitutional obligations of providing proper living conditions; which includes the provision of a secure and progressive transport service to the general public as specified in section 18 of the Road Transport Corporation Act, 1950. The assessee was granted registration under Section 12A of the Act vide order dt.19.12.2000. The DIT (Exemptions) initiated proceedings under Section 12AA(3) of the Act to withdraw the registration granted to the assessee under Section 12A of the Act on the following grounds :- (i) The financia....

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....on the same issue of cancellation of Registration under Section 12AA(3) of the Act. It was submitted by the learned Authorised Representative that in view of the above decision of the Hon'ble Karnataka High Court (supra), wherein this issue was decided in favour of the assessee and against revenue, the same issue in the case on hand also ought to be held in favour of the assessee and its appeal allowed. 4. Per contra, the learned Departmental Representative strongly supported the impugned order of the ld. DIT (Exemptions). It was submitted that the impugned order ought to be upheld since, on the same issue, the assessee's SLP, filed before the Hon'ble Apex Court against the decision of the Hon'ble High Court of Jammu & Kash....

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.... with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution: Provided that no order under this sub-section shall be passed unless such trust or institution has been given a reasonable opportunity of being heard.] 8. A reading of the aforesaid provision makes it very clear, a registration granted earlier under Section 12A of the Act can be cancelled under two circumstances; (a) if the activities of such trust or institution are not genuine, (b) the activities of trust or institution not being carried out in accordance with the object of the trust or institution. Only on those two conditions being satisfied, the registration granted under Secti....

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.... of the assessee falls with first proviso to section 2(15) of the Act, the benefit of registration which flow form section 12A of the Act is not available. Anyhow, that is a matter to be considered by the assessing authority. But on that ground, registration cannot be cancelled, which is precisely the Tribunal has held. In that view of the matter, we do not see any merit. The substantial questions of law are answered in favour of the assessee and against the revenue." 5.2.1 In the case on hand also, the assessee is a public undertaking of the State Government of Karnataka. As held by the Hon'ble High Court (supra), registration granted under Section 12A of the Act can be cancelled only under the following two circumstances; (i) if the....