9911796707
TMI Blog2012 (1) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner has observed that the activity of the appellant relates to charge of fees from the users of the see-port for the facilities such as port infrastructure facility, marine service, clearing and forwarding, use of storage area, land rental, harbouring, etc. On one hand, the fees is charged and on the other hand, payments are to be made to Government of Gujarat. From the description of the receipts and expenditure, it was in the nature of running of a professional activity, more like in the manner of a business activity, ld.Commissioner has observed. In his opinion, assessee has derived profit out of various business activities. The activities of the Board are of commercial nature and there was no charity within the meaning of sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts from all activities in the nature of trade, commerce or any activity rendering services in relation to any trade, commerce for a cess or any consideration, irrespective of the nature of use of applicability or retention of the income from such activity exceeds an amount of ₹ 10 lakhs, the unit/entity/institution ceases to be of Charitable Institution under the fourth limb, i.e. advancement of any other object of general public utility other than the relief of the poor, education and medical relief which are other 3 limbs under the head Charitable purpose. 12. Unfortunately, the assessee has chosen not the submit any reply on this core issue of eligibility of Charitable Purpose u/s.2(15) under the fourth limb, i.e. carryin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aritable purpose w.e.f 1-4-2008 by the Amendment by the Finance Act 2010 as the said institution is not eligible for registration thereafter as the total receipts for the year under consideration is more than ₹ 10 lakhs as prescribed for eligible charitable purpose under the fourth limb of charitable purpose i.e. Advancement of object of general public utility; is cancelled u/s.12AA(3) of the IT Act w.e.f. 01-04-2008 applicable to A.Y. 2009-10. 3. Being aggrieved now the assessee is before us. At the outset, following two decisions have been cited by ld.AR. (i) ITAT D Bench Ahmedabad in the case of Gujarat Industrial Security vs. DIT (Exemption) in ITA No.902/Ahd/2010, order dated 30.12.2011. (ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bad Bench and Chennai Bench mentioned hereinabove and in the facts and circumstances of the present case and in the absence of any violation of Section 12AA(3) of the Act, the registration granted u/s 12AA cannot be cancelled. Therefore, we cancel the order of DIT(Exemption) dated 22.01.2010 and direct the DIT (Exemption) to restore the order of registration granted u/s 12AA of the Act. 3.2 In the case of Ahmedabad Urban Development Authority(supra), the relevant portion is reproduced below:- 7. In view of the above, we are satisfied that none of the conditions as prescribed under Section 12AA(3) is satisfied in the case of the assessee so as to cancel the registration granted under Section 12AA. We therefore quash the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried out, then the Commissioner has power to cancel the registration granted u/s.12AA(1) of IT Act. In the above cited decision of Ahmedabad Urban Development(supra), it was held that when under the Act a specific provision for cancellation of registration is prescribed and the cancellation is possible under specific condition then fulfillment of those conditions are necessary for invoking the jurisdiction u/s.12AA(3). In the present case the reason for cancellation for registration was that the definition of charitable purpose u/s.2(15) has been amended therefore the assessee has not carried out the activity as per the definition of charitable purposes . This very issue has already been dealt with by the Respected Benches, therefore respe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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