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2014 (1) TMI 542 - AT - Income TaxRejection of Application Registration u/s 12A of the Act Held that - The assessee-society has changed its object clause by passing resolution in its general body meeting - The CIT has passed his order on the basis of the pre-amended object clause - the object clause has been amended, thus, the application filed by the assessee needs reconsideration in the light of the amendment carried out in the object clause of the assessee-society order set aside and the matter remitted back for fresh adjudication Decided in favour of Assessee.
Issues:
Challenge to rejection of registration under section 12A of the Income-tax Act. Analysis: The appeal was filed challenging the order rejecting the application for registration under section 12A of the Income-tax Act. The assessee-society was formed with the objective of benefiting the trade and business community. The Commissioner of Income-tax rejected the application, stating that the society's objectives were not for the benefit of the public at large but specifically for the trade/business community of Kannur District. The Commissioner held that a charitable trust must have a public character to qualify for registration. The rejection was based on the pre-amended object clause of the society. The counsel for the assessee argued that the society had amended its object clause to extend benefits to the public at large. The Departmental representative did not object to this argument but pointed out a time gap between the amendment and the application filing. The Tribunal noted the amendment in the object clause made by the society and directed the Commissioner to reconsider the application in light of the amended clause. The Tribunal set aside the Commissioner's order and instructed a re-examination of the application based on the amended object clause and other relevant material, ensuring the assessee is given a fair opportunity to be heard. In conclusion, the Tribunal allowed the appeal for statistical purposes, emphasizing the need for a fresh examination of the application with the amended object clause. The decision was pronounced on May 9, 2013.
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