9911796707
|
Home
Issues involved:
1. Cancellation of registration u/s 12AA 2. Approval under section 80G(5) Cancellation of registration u/s 12AA: The assessee's registration u/s 12A was cancelled by the ld. DIT(E) based on the grounds that the assessee was involved in business activities generating significant surplus and had not carried out any charitable activities. The assessee challenged this order on various grounds, including misinterpretation of law and facts. The counsel argued that the Director did not have the authority to cancel registration granted u/s 12A. The Hon'ble Delhi High Court clarified that the power to cancel registration u/s 12A(a) was vested in the Commissioner/Director only from 1st June, 2010, and not before. Thus, the cancellation of registration by the DIT(Exemptions) before this date was deemed incompetent. Approval under section 80G(5): The assessee's request for approval under section 80G(5) was rejected by the ld. DIT(E) based on the assessment that the assessee was primarily engaged in commercial activities of letting out properties for substantial rental income, with minimal charitable donations made. The assessee appealed this decision, arguing that the leasing of school buildings to educational trusts was a charitable activity. The Tribunal upheld the assessee's contention, citing previous decisions where it was established that the leasing activity was in furtherance of charitable objectives. The Tribunal also noted that the assessee was entitled to the benefit of section 11 based on binding precedents from earlier years. Therefore, the Tribunal allowed both appeals, affirming that the activities of the assessee were indeed charitable in nature, and thus, approval under section 80G was justified.
|
