2015 (1) TMI 1401

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....12.2010. 2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the addition made by AO denying exemption u/s. 11 of the Act for the reason that CIT, Central-III, Kolkata has cancelled the registration granted to assessee trust by invoking the provision of section 12AA(3) of the Act vide order dated 22.06.2010. The CIT(A) has denied exemption for the reason that the assessee has received capitation fee on behalf of students and the registration under 12AA(3) has already been cancelled. Aggrieved, now assessee is in appeal before us and raised following three grounds: "1. For that the Ld. CIT(A) ought to have taken note of the submissions made by the appellant which touched the legality of the asse....

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....) of the Act. The relevant order is quoted in this order and the same reads as under: "3. At the outset the Ld. Counsel for assessee filed copies of Tribunal orders in ITA No.1477/Kol/2010 dated 24.02.2012 and similar order also passed in ITA No.1478/Kol/2010 dated 24.02.2012 wherein the Tribunal has allowed registration uls. 12A of the IT Act and cancelled the order of CIT, C-Ill, Kolkata dated 22.06.2010 in terms of section 12AA(3) of the Act. The relevant findings of the Tribunal vacating the order of CIT-Central-III, Kolkata reads as under :- "5. We have heard the parties and perused the material placed on record. We have also carefully gone through the order of Id. CI.T. passed u/s. 12AA(3) of the Act. The assessee&#3....

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....:- "12AA.(1) The Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) [or clause (aa) of sub-section (l I] of section 12A shall- (a) call for such documents or information from the Trust or institution as he Thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf; and (b) after satisfying himself about the objects of the Trust or I institution and the genuineness of its activities, he- (i) shall pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writin....

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.... registration once granted was only confined to the registration granted under clause (b) of sub-section (1) of section 12AA till before June 1 2010. Of course, now with effect from June 1, 2010, the power vests with the Narula Educational Trust AY 2008-09 Commissioner even to cancel the registration granted under any of the clauses of sub-section (I ) of section 12A. In that view of interpretation, we are of the considered view that there was no power vested with the Commissioner to cancel or withdraw the registration granted to the assessee under section 12A(a) in the year 1974."[Emphasis supplied) Therefore, respectfully following the aforesaid decision of Hon'ble Delhi High Court as also the decisions of coordinate Benches of the Tr....