TaxTMI 
TaxTMI 
2010 (2) TMI 731
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....wed the direction of I.T.A.T. to decide the issue of registration U/s 12A of I.T. Act refresh. Ld. CIT withdraw the registration u/s 12A on the basis of his earlier order only. 2. That Income-tax act does not permit to withdrawal the registration granted by CIT, Meerut on 29-07-2005 with effect from 19-08-2004 therefore, withdrawal of registration is against the provision of I.T. Act. 3. That the purpose of the creation of the society was to established an educational institute for which it obtained the permission from the Registrar of Mahatma Jyoti Pholay Roohelkhand University Bareilly on 12-12-2006 therefore, nonproduction of creditors does not effect the nature of activity (charitable activity) of the society therefo....
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....see over a period of seven months but the issues raised could not be clarified. Consequently, an order u/s 12AA(3) withdrawing registration granted on 29.7.2005 was passed on 30.10.2006. 3. The assessee filed an appeal before the ITAT, which by an order dated 7.4.2008 set aside the Commissioner's order withdrawing registration. 4. In response to notice, Shri V.K. Goel, Advocate, attended and filed submissions on various dates. 5. It was contended that approval to the institute for running a B. Ed. Course was granted on 18.10.2004, 24.1.2007 and 5.3.2006. However, on examination of the attached documents it is seen that the letter dated 18.10.2004 of MJPR University, Bareilly is only a letter addressed to the Se....
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....ained wealth of its promoters then it's activities cannot be said to be genuine. Also pointed out earlier in para 5 (above), the society was not affiliated to any educational Board/University on the date of cancellation. Thus, the conclusions recorded in the order u/s 12AA(3 still hold good. 8. Registration granted to the society by order dated 29.7.2005 is, therefore, withdrawn." 4. We have heard the rival contentions and perused the facts and material available on record. The main dispute before us is two folds i.e. the letter for approval by the Governor of UP was not available on the date of cancellation of registration and secondly, the deposits of Rs.4,03,500/- out of total deposits of Rs.10,21,300/- were not prove....
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....ct from 19.4.2004 and therefore, the learned Commissioner of Income-tax was satisfied about the objects of the trust/institution and genuineness of its activities. With regard to the withdrawal/cancellation of registration of the trust/institution, under section 12AA(3) of the Act, the registration can be cancelled where the trust or institution has been granted registration under section 12AA(1)(b) of the Act and subsequently the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution. In the present case the learned counsel for the assessee has invited our attention to the main objects of the trust at Pages 24 and 25 ....
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....ard, if there is unexplained wealth of the promoters what are the materials available with the Assessing Officer in this regard has not been brought on record. Even if the income is from the unexplained sources, the society cannot be termed as non-charitable. The authorities have to satisfy themselves about the genuineness of the activities of the trust or the institution and how the income derived from the trust/institutional property is applied to the charitable purposes and not the nature of activity by which the income has been derived by the trust/institution. These views are fortified by the judgment of Hon'ble Karnataka High Court in the case of Sanjeevamma Hanumanthe Gowda Charitable Trust vs. Director of Incometax (Exemption) (2006....