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against the order of CIT(E), Hyderabad, dated 26.05.2017 and ITA No.210/CTK/2016 (AY : 2011-2012) is filed by the assessee against the order of CIT(A), Cuttack, dated 19.02.2016.

2. The centripetal issue involved in this appeal of the assessee is that the CIT(E) erred in refusing to grant registration u/s.12AA of the Income Tax Act, 1961 to the assessee-association.

3. Succinct facts of the case are that the assessee is an association registered under the Society Registration Act, 1860 on 08.03.1961 with Registration No.346/44 of 1960-61. The assessee association filed an application in Form No.10A on 31.03.2003 seeking registration u/s.12A of the Act before the CIT, Cuttack Charge Cuttack. However, the CIT, Cuttack Charge, Cuttack has neither granted the registration nor rejected the application filed by the assessee in Form No.10A on 31.03.2003.

Therefore, he rejected the application dated 31.03.2003 filed by the assessee in Form No.10A.

4. Ld. AR of the assessee Shri S.K.Tulsiyan, Advocate appeared and filed written submissions which read as under :-

The appellant was registered under the Societies Registration Act, 1860 on 08/03/1961 under Registration No. 346/44 of 1960-61, having its registered office at Barabati Stadium, Cuttack. A copy of the said Certificate of Registration is enclosed at page no. 01 of the paper book filed.

to look into the matter of registration u/s 12AA of the Income Tax Act, 1961, in the case of the assessee afresh, after giving proper and sufficient opportunity to the assessee to prove that the objects for which it wants to be registered as a 'Trust' are genuine and serve charitable purposes, thus establishing it's eligibility for registration u/s 12AA of the Act.

while considering the application of the Assessee for registration, the CIT should not apply the proviso to section 2(15) of the Act retrospectively. If the Ld. CIT did think that in view of the proviso inserted w.e.f 01/04/2009, the activities carried on by the Assessee no more remained charitable in nature, he could pass Order u/s 154 of the Act, rectifying his order withdrawing the registration of the Assessee in case he had granted registration w.e.f. 01/04/2009 by a speaking Order.

The above judicial pronouncement thus clearly explains the law with regard to grant of registration u/s 12AA of the Income Tax Act, 1961 and the application of section 13(1) of the Income Tax Act, 1961 in connection to it.

In view of the above the Ld. CIT(E) denying to grant registration to the appellant u/s 12AA of the Income Tax Act, 1961 alleging violation of section 13(1) of the Income Tax Act, 1961 is bad in law and cannot be a basis for refusal of registration Thus the Ld. CIT(E) having refused the grant of registration to the appellant u/s 12AA of the Income Tax Act, 1961 alleging violation of section 13(1)(c) of the Income Tax Act, 1961 (even after accepting that the law does not permit him to invoke the said provision at the stage of granting/refusing registration), has acted in sheer disregard and violation of the law and the direction of the Hon'ble ITAT, Cuttack and hence the impugned action of the Ld. CIT(E) is bad in law and cannot be a basis for denying registration to the appellant u/s 12AA of the Income Tax Act, 1961.