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TMI Blog2015 (1) TMI 1401X X X X Extracts X X X X X X X X Extracts X X X X ..... red by the Hon'ble Delhi High Court in the case of DIT (Exemption) vs. Mool Chand Khairati Ram Trust [2011 (4) TMI 563 - DELHI HIGH COURT]. CIT(A) has denied exemption u/s. 11 of the Act on the entire premise that the registration u/s. 12AA(3) of the Act has been cancelled but the same has been restored by the Tribunal. There is no other reason for denying exemption in the orders of the lower authorities. - Decided in favour of assessee. - I.T.A No. 151/Kol/2012 - - - Dated:- 29-1-2015 - Shri Mahavir Singh And Shri Shamim Yahya, JJ. For the Appellant: Shri S. L. Kochar Anil Kochar, For the Respondent: Shri Ravi Jain, ORDER Shri Mahavir Singh, This appeal by assessees is arising out of order of CIT(A), Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant on 24.03.2000 was cancelled by the Ld. CIT, C-III, Kolkata whereas the Ld. CIT (A) ought to have taken note of and decided the issues involved with reference to the facts and law applicable for the year of assessment in appeal. 3.For that the Ld. CIT (A) who had been informed that the order of the Ld. CIT, C-III, Kolkata was in appeal before the Hon'ble Tribunal, the matter ought to have been properly taken note of and ought not to have passed order dismissing the appeal of the appellant. 3. At the outset, Ld. Counsel for the assessee relied on the Tribunal's order in assessee's own case for AYs 2004-05, 2006-07 and 2007-08 in ITA Nos. 220- 222/K/2011 dated 30.04.2012, wherein exactly on similar issue allowed exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the applicable legal position, we are of the considered view that a registration granted u/s. 12A of the Act cannot be withdrawn or cancelled by the Ld CIT by invoking the provisions of sec. 12AA(3) of the Act, Sec. 12AA(3) of the Act reads as under: (3) Where a trust or an institution has been granted registration under clause (b) of sub-section (1) and subsequently the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an Narula Educational Trust AY 2008-09 order in writing cancelling the registration of such trust or institution. A plain reading of the above provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act cannot be cancelled by invoking provisions of Sec. 22AA(3) of the Act. Identical issue was considered by the Hon'ble Delhi High Court in the case of DIT (Exemption) vs. Mool Chand Khairati Ram Trust (supra), wherein it has been held as under:- From the conjoint reading of sub-section (I ) clause (b) and sub- section (3) of section 12A, it would be seen that the cancellation of the registration was granted under clause (b) of sub-section (1). Further, cancellation under sub-section (3) was also provided where the registration was obtained at any time under section 12A (may be under clause (a) or clause (aa) of sub-section (I) of section 12A). But this power of cancellation of registration obtained under section 12A came to be inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I. T. Act, now registration granted u/s. 12A of the act survives and registration u/s. 12A of the act stands restored. The consequential orders passed by AO denying the benefit u/s. 11 of the I. T. Act and confirmed by CIT(A) deserved to be quashed. We order accordingly. As the facts and circumstances are exactly similar and since the CIT(A) has denied exemption u/s. 11 of the Act on the entire premise that the registration u/s. 12AA(3) of the Act has been cancelled but the same has been restored by the Tribunal. There is no other reason for denying exemption in the orders of the lower authorities. Hence, we allow the appeal of assessee. 4. In the result, appeal of assessee is allowed. 5. Order is pronounced in the open court on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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