TaxTMI 
TaxTMI 
2007 (10) TMI 318
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....submitted the documentary evidence in support of its claim which was not disputed by the learned CIT. So the cancellation of registration does not arise and registration under s. 12AA to be restored. 3. That the learned CIT failed to look into the statement of oath recorded under s. 131 (of Financial Advisor) properly in which he (FA) clearly stated that some amount of donation are received from the respected persons of the society which duly reflected in the books of account. The same was also clarified by the Authorised Representative of the assessee in response to the show-cause notice issued by the learned CIT. So the apprehension of the learned CIT that the donations received were not accounted in the books of account is not correct and his findings were to be rejected. 4. That, in clarifying the point No. 4 of the show-cause notice of the learned CIT it is clearly stated in the submission submitted before him that the entries were made in pen not in pencil. So the apprehension of the learned CIT that the entries in the books of account may be changed subsequently is purely baseless and not justified. 5. That the proper books of account are maintaine....
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....s case has been heard twice-once on 27th Sept., 2007 and again on 3rd Oct., 2007 at the request of the learned Departmental Representative. We treated the first hearing as partly heard and again have given opportunity to the learned Departmental Representative to appear and argue on 3rd Oct., 2007. Accordingly the hearing was concluded on 3rd Oct., 2007. Learned Departmental Representative besides their counter argument in this appeal have also filed one case law of the Tribunal, Amritsar Bench in the case of J & K Bank Priority Sector vs. CIT, contending that this case is squarely applicable in favour of the Revenue and accordingly this issue is to be decided in favour of the Revenue. 5. Learned Authorised Representative on the other hand while arguing on behalf of the assessee has filed a number of case laws in the form of a paper book regarding the power of cancellation of registration by the CIT. 6. We have heard both the vociferous argument and counter argument of both the sides for a longtime for two days. We have gone through the case laws cited by both the sides. We have perused the record and the paper book filed. It is a fact that the appellant society has been regi....
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.... Having utilized the whole income for educational purpose as per its objects without having any profit motive, is entitled to hold registration. 8. St. George Educational Trust v. DIT (Exemption) [2006] 9 SOT 636 (Bang.) The objects of the trust having accepted as charitable and genuine for grant of registration under section 12A, shall not be refused that the trustee contributed money or TDS was not deducted. 9. Sikshya O Anusaruthan v. CIT (IT Appeal No. 351 (Ctk) of 2006) Mere irregular in maintenance of accounts cannot be ground for cancellation of registration under s. 12AA particularly when the aims and objects of the society have never been alleged to have been flouted. 7. On the other hand learned Departmental Representative has cited the case law of Amritsar Bench of Tribunal, wherein the Hon'ble Tribunal have gone into the issues groundwise and have partly allowed the assessee's appeal giving a detailed descriptive order of 39 pp. But the facts of the cited case and the present case are not similar or akin to each other although it is a case after insertion of s. 12AA(3). It is because the cited case of the learned Departmental Representative is n....
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....ceedings after the search is in process. The CIT in his show-cause notice under s. 12AA(3) has mentioned as follows vide paras 2 and 9 as follows: "Para 2. From the following findings of the search and seizure operation conducted in your case on 9th Aug., 2005, it appears that the activities of your institution are not genuinely charitable and are not being carried out in accordance with the objects of the institution. Specific instances of diversion of funds of the institution for the personal benefits of the founder members have been found. Para 9. In view of the above please explain as to why the registration of the society should not be cancelled under the provisions of s. 12AA(3) of the IT Act, 1961. You are requested to appear for a hearing before the undersigned at 11 A.M. on 28th Nov., 2006 to explain your position which will be considered before passing any order." 10. In our considered opinion paras 2 and 9 are most relevant while considering the issue in hand. From the aforesaid two paras as it appears the CIT has passed the order of cancellation utilizing his administrative power without looking into the quasi-judicial aspect of the same. 11. Reg....