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TMI Blog2014 (10) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... its office-bearers, even though under the same brand name, cannot cast a shadow of taint on it. Unless the assessee is tainted by the failure to satisfy the procedural requirements for exemption, the benefit of exemption cannot be denied to it simply because the persons connected with it were carrying out similar activities as a business in the past or, for that matter, are carrying out the same even at present separately in their personal capacity. Hon’ble Gujarat High Court in the case of Ahmedabad Urban Development Authority vs DRIT (2010 (3) TMI 847 - Gujarat High Court) holding that on the date when the assessment order was framed, the income of the petitioner was exempt entirety and the AO could not have travelled beyond the certi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings. Further the CIT(A) can only as for a remand report during course of appellate proceedings and no authority to set aside the case. 2. At the outset of hearing the Ld. AR pointed out that the issue raised in the grounds is covered by the decision of Hon ble High Court of Uttarakhand in the case of CIT vs All Saints, College Societies and Others ITA No.-282 to 287/2007 and others. He also cited the decision of Hon ble Gujarat High Court in the case of Ahmedabad Urban Development Authority vs DRIT(2011) 335 ITR 575 (Guj.). 3. The LD. SR. DR on the other hand placed reliance on the assessment order that with this contention that the assessee was doing business activities and the decision relied upon by the Ld. AR having distinguish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven his conclusive finding on the issue in para 1.5 of the order, reproduced hereunder:- 1.5. Before the introduction of section 12AA of the I.T.Act by the Finance (No.2) Act, 1996 w.e.f 01.04.1997. registration to charitable or religious entities was granted u/s 12A of the I.T.Act. The existing provision of section 12AA(3) of the I.T.Act envisages cancellation of registration granted u/s 12AA (1)(b) (w.e.f 01.10.2004) as well as u/s 12A (w.e.f 01.06.2010) of the I.T.Act. But before that there was no provision for cancellation of registration. There are a number of decisions to the effect that the CIT had no power to cancel the registration till the enabling provision was inserted in section 12AA(3). In this situation, if it is laid dow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has been found to be pursuing objects which are charitable as well as religious in nature (as discussed above). The AO s observation regarding the activity being conducted as a business by Shri Shivcharan Lal Agarwal in the past may be factually correct. But, considering that the assessee was constituted as an entity on 11.04.2008 and got registration u/s 12AA of the I.T.Act w.e.f 08.10.2008, the past commercial activity of its office-bearers, even though under the same brand name, cannot cast a shadow of taint on it. Unless the assessee is tainted by the failure to satisfy the procedural requirements for exemption, the benefit of exemption cannot be denied to it simply because the persons connected with it were carrying out similar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents filed by the assessee, the Assessing Officer was of the view that the assessees are no longer entitled to the registration, it would have been obligatory on its part to bring the same to the notice of the Commissioner for the purpose of de-registration of the assessees. Instead of that, in a most mala fide manner, he assessed the assessees. We are of the view that the Commissioner of Appeals and the Tribunal have concluded the matter, requiring no interference in appeals by the High Court. 9. Similar view has been expressed by the Hon ble Gujarat High Court in the case of Ahmedabad Urban Development Authority vs DRIT (supra) holding that on the date when the assessment order was framed, the income of the petitioner was exempt entir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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