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TMI Blog2014 (7) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... act that there was change the activities of the assessee during the year or that the assessee was not carrying out its activities as per the MOA, the views of the DIT-E cannot be accepted – Decided in favour of Assessee. - ITA No. 674/Mum/2012 - - - Dated:- 7-5-2014 - S/Sh. Vijay Pal Rao Rajendra, JJ. For the Appellant : Shri Nitesh Joshi For the Respondent : Shri P.K.Shukla ORDER Per: Rajendra: Challenging the order passed u/s. 12AA(3) of the Act of the Director of Income-tax (Exemption), Mumbai (DIT)(E), dated 28. 12. 2011, assessee has filed following grounds of appeal: 1. The grounds of appeal that follow are all independent and without prejudice to each other. 2. Re: Lock of adequate opportunity/Non-Consideration of submissions: 2.1 That, on the facts and in the circumstances of the case and in law, the Learned Director of Income Tax (Exemption) erred in issuing a show cause notice at the fag end of the assessment proceedings and in not granting adequate time and opportunity to the appellants in the matter. 2.2 That, on the facts and in the circumstances of the case and in law, the Learned Director of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Your appellants crave leave to add, alter, amend, vary, omit or substitute the aforesaid grounds of appeal or add a new ground or grounds of appeal at any time before or at the time of hearing of as the appeal they may be advised. 2. During the course of hearing before us, Authorised Representative (AR) of the assessee stated that ground no. 3.1 and 3.2 are the effective grounds of appeal and are to be adjudicated upon. Considering his submissions, we are taking of the issue of registration u/s. 12A of the Act. The assessee is a company incorporated u/s. 25 of the Indian Companies Act. As per the Memorandum of Association (MOA) principle object of the assessee were the study of the theory of banking, to institute scheme of examination, to promote information on banking etc. DIT(E) received a proposal from the ADIT(E) II(1), Mumbai for cancellation of registration granted to the assessee u/s. 12A of the Act. ADIT in its proposal stated that assessee was carrying on activities in the nature of trading, commerce or business, that gross receipts of the assessee were in excess of ₹ 10 lakhs, that provisions to proviso to section 2(15) of the Act were applicable in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that assessee trust had became non-genuine for the purpose of section 11 of the Act, that the registration allowed to it in earlier years u/s. 12AA was to be cancelled/withdrawn w.e.f. AY 2009-10. 4. Before us, Authorised Representative (AR) submitted that there was no change in the objects of the trust, that it was carrying the same activities that were part of the activities of earlier years, that proviso to section 2(15) was not applicable, that institution was carrying out activities that were held to be educational by the Tribunal in the earlier years, that both the conditions for application of proviso were not existing. He relied the orders of Cotton Textiles Export (44 Taxmann.com 168), Khar Gymkhana (ITA 373/Mum/2012, AY. 2009-10, dated 10.07.2013, Tamil Nadu Cricket Association (40 Taxmann.com 250), Vanita Samaj (ITA/1034/Mum/2012-AY. 2009-10, dtd. 26.02.2014). Referring to the orders of the Tribunal for the AY 1996-97 to 1998-99, he contended that institution was carrying out educational activities. He further argued that registration can be cancelled u/s 12AA(3), if the activities of trust were not genuine or activities were not carried out in accordance with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was conducting exams and was supplying study material to students. These very activities were held to be educational activities by the Tribunal on more than one occasions and the orders of the ITAT have become final. Therefore, without bringing something positive on record to distinguish the facts of earlier year and current year, view has to be taken that assessee was in the field of education. We further find that in the case of Oxford Academy for Career Development Hon'ble Lucknow Bench of Allahabad High Court has dealt with almost similar issue. In that matter the assessee was granted registration on 01.04.1999. A survey was conducted at the business premises of the assessee under section 133A of the Act on 20.09.2002, wherein documents were impounded. On the basis of the information, it was felt by the departmental authorities that the society was being run for the purposes of profit. Therefore, after serving a notice, the earlier registration granted under section 12A of the Act was cancelled for the reasons that the surplus was quite heavy. In the impugned order, it was mentioned by the Commissioner of Income-tax that there was an unusual huge margin and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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