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Issues involved: Appeal against order u/s 12AA(3) of the Income-tax Act, 1961 regarding registration under sec. 12A.
Details of the Judgment: 1. Grounds of Appeal: The assessee claimed that the order u/s 12-A dated 29-09-2010 was barred by limitation as the application for registration u/s 12-A was made on 26-03-2006. However, the actual application was dated 26.03.2010, and the order by the Commissioner of Income-tax was passed within the six-month period, despite being received by the assessee after the expiry of six months. The ground raised by the assessee was rejected. 2. Merits of the Issue: The order under sec. 12AA(3) cancelled the registration granted to the trust. The Commissioner's conclusion was based on the satisfaction that the trust's activities were not genuine or not in line with its objects. The order was found to be contradictory as it did not mention any registration earlier granted to the assessee under sec. 12A. The decision of the Hon'ble Allahabad High Court in City Montessori School vs. Union of India was highlighted, emphasizing the need for proper consideration of facts. The Memorandum of Association and Rules were found to lack clarity on important aspects like the distribution of surplus and dissolution procedures, requiring further investigation by the Commissioner. The matter was remanded back to the CIT for fresh adjudication after providing a reasonable opportunity for the assessee to be heard. 3. Conclusion: The appeal filed by the assessee was treated as allowed for statistical purposes, and the case was remanded back to the CIT for reevaluation based on the highlighted issues and considerations. 4. Decision: The judgment was pronounced in the Open Court on 17.01.2011 after the hearing, with the matter being sent back to the Commissioner for fresh adjudication.
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