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TMI Blog2013 (3) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... istration under Section 12 A could not have been cancelled - in favour of assessee. - ITA 80/2013 - - - Dated:- 26-2-2013 - Badar Durrez Ahmed And R. V. Easwar,JJ. For the Petitioner : Mr Karan Khanna, Ms Asmita Kumar For the Respondent : None JUDGMENT 1. This appeal by the revenue is directed against the order dated 30.03.2012 passed by the Income Tax Appellate Tribunal in ITA 386/Del/2012 pertaining to the cancellation of registration under Section 12AA(3) of the Income Tax Act, 1961(hereinafter referred to as the said Act ). The respondent assessee had filed an appeal before the Tribunal being aggrieved by the order of the Director of Income Tax (E) passed under Section 12AA(3) read with Section 12 of the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted or set apart shall not be included in the total income of the previous year of the person in receipt of the income, provided the following conditions are complied with, namely : (a) Such person specifies, by notice in writing given to the Assessing Officer in the prescribed manner, the purpose for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart, which shall in no case exceed ten years; (b) The money so accumulated or set apart is invested or deposited in the forms or modes specified in subsection (5). . (5) The forms and modes of investing or depositing the money referred to in clause (b) of sub-section (2) shall be the following, namely :- (x) Inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the assessee has endeavored to enter into business operations. In our view the assessee's charitable objects include spreading education and opening of schools; investment even in commercial property assets remains charitable purposes so long as the income generated by it is applied to charitable objects. It has not been demonstrated that the assessee applied rent received from these properties to any non- charitable purposes. Besides, it has not been demonstrated that the assessee's intention was to enter in business of purchase and sale of commercial property inasmuch as we are in year 2012, the property was purchased in FY 2004-05 and the Trust still retains this property. In these circumstances, we are unable to hold that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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