TaxTMI 
TaxTMI 
2013 (8) TMI 407
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....T has erred in concluding that donations given for charitable activities . as per the objects of the trust are not genuine and thereby canceling the registration. Proof attached by way of receipts duly show the proper application of donation." 3. We proceed to dispose of the present appeal by referring to the facts in ITA No. 99/Chd/2013. The issue raised in the present appeal is against the withdrawal of registration by the Commissioner of Income-tax under section 12AA(3) of the Act. 4. The brief facts of the case are that the trust was run by one Smt. Usha Devi Saboo w/o Shri Rajinder Kumar Saboo in the name and style of M/s Satkrit Service Trust. The said trust was registered with the Sub Registrar, Chandigarh on 21.4.2006. The trust was constituted of two trustees i.e. Smt. Usha Devi Saboo and Smt. Anuradha Saboo. The aims and objects of the trust were as per clause (3) of the Trust Deed and it is an accepted fact that the said objects were charitable in nature. Another Trust Deed was registered on 1.11.2006 in which two new clauses were incorporated. The first clause incorporated in the said Trust Deed was in respect of the distribution of funds and assets in the event of di....
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.... 5. The assessee is in appeal against the order of the Commissioner of Income-tax. The ld. AR for the assessee referred to the aims and objects of the trust and pointed out that initially the said trust was registered by the Commissioner of Income-tax vide order passed under section 12AA of the Act. It was further pointed out by the ld. AR for the assessee that all the facts were on record and no new facts have been brought on record by the Commissioner of Income-tax warranting cancellation of the registration already granted to the assessee trust. The present trust was claimed to have been formed by way of a supplementary Trust Deed, which incorporated all the clauses of the earlier two Trust Deeds. The ld. AR for the assessee pointed out that the supplementary Trust Deed was registered with the Registrar of Societies and as the provisions of the Act had been followed, there was no merit in the order passed under section 12AA(3) of the Act. 6. The ld. DR for the revenue pointed out that there were two objections raised by the Commissioner of Income-tax. The first being that another business entity was formed by the assessee and secondly, the original trust which was an irrevocab....
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....d to the assessee by Commissioner of Income-tax-I Chandigarh vide order dated 17/19.07.2007 passed under section 12AA(1)(b)(i) of the Act. The copy of the said order is placed at pages 23 & 24 of the Paper Book. The said trust was also approved under section 80G(5)(vi) of the Act vide order dated 17.07.2007 which is placed at page 25 of the Paper Book and the said approval was renewed vide order dated 24.10.2008 and copy of the said order is placed at page 26 of the Paper Book. As noted by the Commissioner of Income-tax, the order granting registration under section 12AA(1)(b)(i) of Income Tax Act, 1961 was passed vide order dated 19.07.2007 subject to the fulfillment of the following conditions: (i) Registration u/s 12AA of the Income Tax Act, 1961 read with section 12A does not confer any right of exemption upon the applicant u/s 11, 12 and 13 of the Income Tax Act, 1961. This exemption from taxation will be available only if the Assessing Officer is satisfied about the genuineness of the activities promised or claimed to have been carried out in each financial year relevant to the assessment year as per its objects for which it has been established. (ii) The society shall appl....
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.... certain donations from its trustees which funds, in turn were utilized for giving further donations. The details of donations made in the years under appeal are as under :- Financial Year : 2008-09 Sr. No. Particulars Amount (Rs.) Remarks 1 Donation given to National Association for Blind India, New Delhi vide vide Ch. No. 629785 dated 01.01.2009 for computer Education of Girl Child Vide Receipt No. 2152/06.01.2009 5000.00 There is only a copy of receipt issued by National Association for Blind India, New Delhi 2 Donation given to Mobile Crech, New Delhi vide cheque no. 629786/01.01.2009 and receipt no. 13862/05.01.2009 5000.00 There is only a copy of receipt issued by Mobile Crech, New Delhi Total 10000.00 Financial Year : 2009-10 Sr. No. Particulars Amount (Rs.) Remarks 1 Donation given to National Association for blind India, New Delhi vide C. To, 29797 dated 01.01.2010 for computer education for girl child vide receipt 2842/02.01. 5000.00 There is only a copy of receipt issued by National Association for Blind India, New Delhi 2 Donation given to Mobile Crech, New Delhi vide cheque no. 629791/26.09.2009 and Receipt no. 145/07.10.2009 ....
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.... two new clauses covering the events of dissolution of the trust and also in case of any changes or amendments to the clauses of the Trust Deed, prior approval of the authorities would be taken. Thereafter, the Settler executed the Supplementary Trust Deed on 25.05.2007, under which the clauses of the earlier two Trust Deeds were amalgamated. The supplementary Trust Deed was registered under section 12AA of the Income-tax Act by the Commissioner of Income-tax Chandigarh vide order dated 17.7.2007. The said registration was revoked by the Commissioner of Income-tax vide order dated 17/21.01.2013 against which the assessee is in appeal before us. 12. Coming to the provisions of section 12AA(3) of the Act, it is provided that where a Trust or an Institution had been granted registration and subsequently where the Commissioner is satisfied that the activities of such trust or institution were not genuine or were not being carried out in accordance with the objects of the trust or institution, then an order cancelling the registration of such trust or institution is to be passed by the Commissioner of Income-tax in writing. Thus, in all such cases where a trust or an institution which ....