2021 (6) TMI 811

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....ant raised the following grounds of appeal:- "1. The learned CIT-Exemption erred in law and on facts in not granting registration u/s. 12AA of ITA, 1961 to the Appellant (i.e. MESCO). 2. Appellant contends that, Appellant made detailed submissions upon all issues raised, whereas, learned CIT-Exemptions, declined registration u/s. 12AA on altogether erroneous and incorrect analogies without affording any further opportunity to the Appellant, to make a SAY in the matter and as such, vitiated principle of natural justice. 3. Learned CIT-Exemptions erred in law and on facts in holding that, a) Charging about 10% mark-up is a business activity b) Earning surplus of about 4% of revenue is not wafer-thi....

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....lant company made an application in Form No. 10A for grant of registration u/s. 12A of the Act on 12.09.2019. On receipt of the said application, the ld. CIT (Exemption) issued a letter through ITBA portal on 30.01.2020 calling for certain information/clarification in order to enable him to satisfy himself as to the genuineness of the activities carried out by the appellant company. It is submitted before the ld. CIT (Exemption) that though the appellant company was incorporated in the year 2002 since it was under the bona-fide impression i.e. eligible for exemption u/s. 10(26BBB) of the Act and, therefore, no application for grant of registration was made earlier. It is only after the realization of this mistaken impression, an application....

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....rcial activities not pursuing any charitable activities. Finally, the ld. CIT (Exemption) on perusal of the dissolution clause contained in Article of MOU had concluded that the balanced funds of the appellant company, if any, shall be distributed amongst its members in proportionate to the capital held by them. Accordingly, denied the grant of registration vide order dated 31.03.2021. 6. Being aggrieved, the appellant is before us in the present appeal. 7. It is submitted that the appellant company was incorporated by Government of Maharashtra pursuant to the Resolution passed on 18.01.2002 with the objects of providing re-employment for ex-servicemen etc. The copy of the Resolution was also placed before us. It is submitted that the....