no material placed before us to establish that the assessee is not carrying on the activities in accordance with the objects or the activities of the assessee are not genuine. The Ld.CCIT has cancelled the registration on presumptions and assumptions without having proper material. Therefore, we cancel the order of the Ld.CCIT passed u/s 12AA(3) of the Act and restore the registration granted to the assessee. Accordingly, appeal of the assessee is allowed.
Sec. 11 of Income Tax Act, 1961— Exemption - The CCIT found that the assessee is engaging in commercial activity and auctioned the lands to highest bidders in gross violation of its objects and entered into joint venture for construction of commercial properties with top builders of the region. Therefore, issued show cause notice calling for the explanation of the assessee as to why the registration granted u/s 12AA of the Act, should not be cancelled. In response to which the assessee filed explanation objecting for cancellation of registration and submitted that the assessee has neither violated the provisions of APUD Act, 1975 nor carried on any activity in violation of the objects of APUDA Act. The assessee argued that it had acted as an agent for resource mobilisation of state government and sold the state government lands and deposited the sale proceeds in the government account on one occasion and submitted that VUDA acted as a facilitator in auctioning the lands and the said lands do not belong to the assessee. The CCIT cancelled the registration already granted u/s 12AA of the Act w.e.f. 2006-07 onwards. - VISAKHAPATNAM METROPOLITAN REGION DEVELOPMENT AUTHORITY V/s CHIEF CIT - [2020] 23 ITCD Online 113 (ITAT-VISAKHAPATNAM)
no material placed before us to establish that the assessee is not carrying on the activities in accordance with the objects or the activities of the assessee are not genuine. The Ld.CCIT has cancelled the registration on presumptions and assumptions without having proper material. Therefore, we cancel the order of the Ld.CCIT passed u/s 12AA(3) of the Act and restore the registration granted to the assessee. Accordingly, appeal of the assessee is allowed.
Sec. 11 of Income Tax Act, 1961— Exemption - The CCIT found that the assessee is engaging in commercial activity and auctioned the lands to highest bidders in gross violation of its objects and entered into joint venture for construction of commercial properties with top builders of the region. Therefore, issued show cause notice calling for the explanation of the assessee as to why the registration granted u/s 12AA of the Act, should not be cancelled. In response to which the assessee filed explanation objecting for cancellation of registration and submitted that the assessee has neither violated the provisions of APUD Act, 1975 nor carried on any activity in violation of the objects of APUDA Act. The assessee argued that it had acted as an agent for resource mobilisation of state government and sold the state government lands and deposited the sale proceeds in the government account on one occasion and submitted that VUDA acted as a facilitator in auctioning the lands and the said lands do not belong to the assessee. The CCIT cancelled the registration already granted u/s 12AA of the Act w.e.f. 2006-07 onwards. - VISAKHAPATNAM METROPOLITAN REGION DEVELOPMENT AUTHORITY V/s CHIEF CIT - [2020] 23 ITCD Online 113 (ITAT-VISAKHAPATNAM)