TaxTMI 
TaxTMI 
2015 (1) TMI 1466
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....taka Housing Board (for short hereinafter referred to as 'the KHB') was granted registration under Section 12A of the Act on 3.2.2004 by an order passed by the Commissioner of Income Tax. Subsequently, a notice came to be issued on 15.3.2011 as to why registration under Section 12A of the Act should not be revoked by invoking the provisions of Section 12AA(3) of the Act by the authorities. In response to the said notice, the KHB filed written submission on 25.3.2011 and contested the matter. The authorities took note of the fact that the accounts for the year ending 31.3.2009 shows receipts by way of sale of houses/sites to an extent of Rs. 226,90,11,264/- and excess of income over expenditure at Rs. 21,62,52,560/-. The extract of income an....
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....ome Tax (Exemption) has cancelled the registration. Aggrieved by the said order, the assessee filed an appeal - ITA No. 1049/2011 before the Tribunal. 4. The Tribunal after considering the entire material on record recorded a finding that the registration granted under Section 12A of the Act cannot be revoked on account of commercial activities by the Board in pursuing the advancement of objects of general public utility and registration can be cancelled only on arriving at a finding that the activities of the Board are not genuine and not carried in accordance with the objects of the Board. Accordingly, the Tribunal by its impugned order dated 31.01.2013 has allowed the appeal against which the present appeal is preferred by the rev....
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....ncluding commercial complexes, commercial plazas planned with provision for retails outlets, entertainment zones and small offices. The maintenance of these amenities lies with KHB until it hands over the Scheme to the local Municipal Authority. activities exceeds Rs. 25,00,000/- and therefore, it squarely falls under the first proviso to Section 2(15) of the Act. Therefore, it ceases to be an institution for charitable purpose and therefore, rightly the registration under Section 12A of the Act was cancelled which has been erroneously interfered with by the Tribunal. 7. Per contra, learned Counsel for the assessee contended that once a person is granted registration under Section 12A of the Act, the said benefit could be denied only if th....
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....ration of such trust or institution: Provided that no order under this subsection shall be passed unless such trust or institution has been given a reasonable opportunity of being heard.]" 9. A plain reading of the aforesaid provision makes it very clear that a registration granted under Section 12A of the Act can be cancelled under two circumstances i.e., (i) If the activities of such trust or institution are not genuine and (ii) The activities of trust or institution not being carried out in accordance with the object of the trust or institution. Only on these two conditions/grounds being satisfied, the registration granted under the provisions of Section 12A of the Act could be cancelled by the authorities. 10. It is not in dispute....