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TMI Blog2015 (2) TMI 1133X X X X Extracts X X X X X X X X Extracts X X X X ..... DIT (Exemptions) that there was any violation of the aforesaid two conditions by the assessee, and therefore the grounds which empower the ld. DIT (Exemptions) to cancel the registration under Section 12AA(3) of the Act, are absent. The registration cannot be cancelled in view of the amendment of the first proviso to section 2(15) of the Act, since it is not a ground specified in the statute for cancellation of registration under Section 12AA(3) of the Act. As observed that if the case of an assessee falls within the ambit of the first proviso to section 2(15) of the Act, the benefits which arise from registration under Section 12AA of the Act will not be available to it, and this aspect is to be considered by the Assessing Officer, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a secure and progressive transport service to the general public as specified in section 18 of the Road Transport Corporation Act, 1950. The assessee was granted registration under Section 12A of the Act vide order dt.19.12.2000. The DIT (Exemptions) initiated proceedings under Section 12AA(3) of the Act to withdraw the registration granted to the assessee under Section 12A of the Act on the following grounds :- (i) The financial accounts of the assessee relating to the period relevant to Assessment Year 2009-10 reveal that the assessee had surplus of ₹ 55.18 Crores. (ii) On a perusal of the Website of the assessee, the ld. DIT (Exemptions), concluded that the assessee was providing buses for casual contracts and chartered s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue, the same issue in the case on hand also ought to be held in favour of the assessee and its appeal allowed. 4. Per contra, the learned Departmental Representative strongly supported the impugned order of the ld. DIT (Exemptions). It was submitted that the impugned order ought to be upheld since, on the same issue, the assessee's SLP, filed before the Hon'ble Apex Court against the decision of the Hon'ble High Court of Jammu Kashmir in the case of Jammu Development Authority V UOI in ITA No.164/2012 dt.7.12.2013, was dismissed by order of the Hon'ble Apex Court dt.21.7.2014. 5.1 We have heard the rival contentions and perused and carefully considered the material on record; including the judicial pronouncement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portunity of being heard.] 8. A reading of the aforesaid provision makes it very clear, a registration granted earlier under Section 12A of the Act can be cancelled under two circumstances; (a) if the activities of such trust or institution are not genuine, (b) the activities of trust or institution not being carried out in accordance with the object of the trust or institution. Only on those two conditions being satisfied, the registration granted under Section 12A of the Act could be cancelled by the authorities. 9. It is not in dispute that there is no violation of the said two conditions by the assessee. The activities carried on by the assessee is a genuine one. As could be seen from the profits they have generated, the said prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is precisely the Tribunal has held. In that view of the matter, we do not see any merit. The substantial questions of law are answered in favour of the assessee and against the revenue. 5.2.1 In the case on hand also, the assessee is a public undertaking of the State Government of Karnataka. As held by the Hon'ble High Court (supra), registration granted under Section 12A of the Act can be cancelled only under the following two circumstances; (i) if the objects of such trust or institution are not genuine; and (ii) the activities of the trust or institution are not being carried out in accordance with the objects of the trust or institution. 5.2.2 In the impugned order in the case on hand, there is no finding rendered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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