Registration U/s. 12AA cannot be cancelled merely because collection exceeds threshold limit provided u/s 2(15)

Telangana State Seed Certification Agency Vs. CIT (Exemptions) (ITAT Hyderabad) Hon’ble High Court has held that the assessee is rendering services in relation to trade commerce or business and since its income exceeded Rs. 25.00 lakhs, it cannot be treated as a charitable institution. This decision of the Hon’ble High Court is dated 17.12.2012. We find that there are amendments to section 2(15) subsequent to this date. Vide Finance Act of 2015 w.e.f. 1.4.2016, the cut off benchmark has been changed to 20% of the total receipts instead of the fixed limit of Rs. 25.00 lakhs as it ex...