JUDGMENT :

J.B. Pardiwala, J.

1. This Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short, 'the Act 1961') is at the instance of the Revenue and is directed against the order passed by the Income Tax Appellate Tribunal, 'A' Bench, Ahmedabad, dated 20th January 2012, in the ITA No.36/Ahd/2011.

2. The facts giving rise to this Tax Appeal may be summarised as under :

3. The respondent-assessee is engaged in the activity of administering, controlling and managing the minor ports in the State of Gujarat. The respondent-assessee is registered under Section 12AA of the Act 1961 w.e.f. 1st April 2002. The Commissioner of Income Tax, Gandhinagar, vide order dated 7th December 2010, cancelled the registration of the respondent-assessee as a charitable institution. The order passed by the Commissioner of Income Tax reads thus :

“2. The activity of the assessee is related to levying various fees of charges from the users of the ports under various heads like (1) Port Infrastructure facilities (2) Marine Services (3) Clearing, forwarding and Harboring (4) Storage Area and Land Rental (5) Equipment & Harbor Craft Rental (6) License Fees (7) Income from other Port Services. Similarly,