TaxTMI 
TaxTMI 
2012 (3) TMI 507
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....AA of the Income Tax Act, 1961 ('the Act' hereinafter) w.e.f. 2009-10. 3. The brief facts of the case are that the assessee authority was granted registration under section 12AA of the Act w.e.f. 01.04.2003. The CIT, in order to examine the claim of the assessee in the light of change in definition of 'charitable purpose' under section 2(15) of the Act, issued a notice to the assessee for withdrawal of registration w.e.f. Assessment Year 2009-10 on 17.10.2011 under section 12AA(3) read with Section 293C of the Act. The CIT, after considering the assessee's submission, has withdrawn the registration under section 12AA of the Act w.e.f. 2009-10 as under :- "In regard to para-wise reply to this office observations, briefly mentione....
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.... added by the Finance Act, 2008, even then these authorities were held to be not for 'charitable purpose' as per then definition u/s 2(15). ITAT, Amritsar in Jalandhar Development Authority Vs. CIT (ITA No.562/Asr/2008) has discussed various case laws and upheld the order of CIT, Jalandhar who had rejected the registration of Jalandhar Development Authority u/s 12AA holding that the authority is not for 'charitable purpose' as mentioned in sec.2(15). This position of law has changed considerably by insertion of proviso to Section 2(15) by Finance Act, 2008 which has considerably restricted and limited the exemption claimed by assesses who's "charitable purpose" falls in the fourth limb i.e. any other object of general public utility. ....
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....es in the case of Brahman Sabha Trust in ITA No.1944/Mum/2010 order dated 22.03.2011. The relevant finding of the I.T.A.T. is reproduced as under :- "6. It is the legality of the aforesaid order which is being challenged before us in this appeal. One of the preliminary objections of the appellant is that there is no provision in section 12AA to enable the CIT to cancel the registration earlier granted under section 12A of the Act. We are of the view that the abjection is well founded. Section 12AA(3) provides that where a trust or an institution has been granted registration under clause (b) of sub-section (1) thereof and subsequently the CIT is satisfied that the activities of the trust were not genuine or they were being carried ....
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....ion is titled "Power to withdraw approval". It was introduced by the Finance (No.2) Act, 2009, with effect from 01.10.2009. Circular No.5 of 2010 issued by the CBDT on 03.06.2010, (2010) 324 ITR (Statutes) 293 explains the provisions of the said Finance Act. Paragraph 57 explains the provisions of section 293C and the same is as under :- "57. Power to withdraw approvals 57.1 Under the existing provisions of Income-tax Act, an approval is required to be granted by Income-tax authority for availing of various incentives by the assessees. While some provisions of Income-tax Act specifically contain provisions for withdrawal of approval but in many cases there is no such specific provisions containing power of withdrawal. ....
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....ssociation or institution to whom the assessee has paid the amount in respect of which a claim for deduction is made under the section. It is not necessary to multiply instances. Section 293C uses the expression "approval". It cannot therefore apply to a case of registration. Therefore, the section cannot infuse validity to the impugned order. 8. For the above reasons we uphold the preliminary objection raised by the assessee and annul the impugned order which has been passed without jurisdiction. The appeal of the assessee is allowed with no order as to costs." 5. The Ld. Authorised Representative drew our attention on the show-cause notice of which copy has been placed at page nos.5 to 10 of the assessee's Paper Book and submi....