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The Tax Publishers2020 TaxPub(DT) 5067 (Visakhapatnam-Trib) INCOME TAX ACT, 1961
Section 12A Section 12AA(3)
Where ITAT considered the objects of the assessee, method for disposal of lands as enshrined in Andhra Pradesh Urban Areas (Development) Act, 1975 and held that the activities of the assessee cannot be held to be commercial in nature.
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Charitable trust - Canceallation of registration - Activities of assessee, whether commercial vis-a-vis objects of assessee-society -
CCIT (OSD) had passed the order cancelling the registration granted under section 12AA vide Order, dated 4-5-2012 for the same reasons, which were mentioned in the reassessment order and the CIT(A)'s order. Reasons for reopening the assessment were mentioned in page No. 19 of CIT(A)'s order and from which it was found that assessee was carrying on the commercial activities like sale of plots, constructed houses, sale of plants, saplings, etc. Subsequently, the assessee went in appeal before the ITAT against cancellation of registration under section 12AA(3). Held: The ITAT passed a detailed order in ITA No. 295/Viz/2012, dated 20-3-2020 and restored the registration. The activities which were observed by the CCIT(OSD) stated to be commercial in nature were examined by the ITAT in its detailed order in paras 2.6 and 3.3. The ITAT considered the objects of the assessee, method for disposal of lands as enshrined in Andhra Pradesh Urban Areas (Development) Act, 1975 and held that the activities of the assessee cannot be held to be commercial in nature.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2005-06 to 2007-08 & 2010-11
INCOME TAX ACT, 1961
Section 11 Section 2(15) Proviso
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