Exceeding gross receipts threshold under IT Act Section 2(15) doesn’t warrant cancellation

Meerut Development Authority Vs CIT (ITAT Delhi) Introduction: The Meerut Development Authority (MDA) found itself entangled in a legal battle with the Commissioner of Income Tax (CIT), Meerut, over the cancellation of its registration under Section 12AA(3) of the Income Tax Act, 1961. The core contention revolved around the CIT’s assertion that MDA’s substantial profits and alleged deviation from charitable activities justified the retrospective cancellation. Detailed Analysis: MDA, in its appeal to ITAT Delhi, vehemently challenged the CIT’s order on multiple grounds. The c...