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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 ..... ve of the nature of use or application or retention of the income from such activity. 2. The Ld. CIT(A) has erred in law in directing the AO to re-examine the information/documents to be produced by the assessee before the AO, afresh, as the assessee has already been confronted with the documents during the course of assessment proceedings. 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 deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is a business entity and its income was chargeable to tax as profits and gains of business. He charged the surplus of Rs. 18,90,319/- to tax. The Ld. CIT(A) after discussing the case of the assessee in detail has allowed the claimed exemption and in result the addition has been deleted. 7. The Ld. CIT(A) has given 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee's contention that since the registration granted to it u/s 12AA of the I.T.Act was in place, the AO was precluded from denying the benefit of exemption on the basis of his independent analysis that is objects or activated were not "charitable" in nature. The issue, however, is only academic in so far as the assessee 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 activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact remains that, while section 12A of the Act speaks about registration, Section 12AA prescribes the procedure for registration. Sub-Section (3) thereof makes it absolutely clear, in what circumstances, registration may be cancelled and who can do so. In the event, having had considered the returns and other documents 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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