TaxTMI 
TaxTMI 
2013 (11) TMI 664
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....ses out of judgment and order dated 24.5.2013 passed by the Income Tax Appellate Tribunal in ITA No.127/Agra/2013 and ITA No.128/Agra/2013 in the matter of Babu Mohan Lal Arya Smarak Educational Trust v. Commissioner of Income Tax (Central), Kanpur and Sharda Educational Trust v. Commissioner of Income Tax (Central), Kanpur respectively. We have gone through the orders passed by the Commissioner of Income Tax (Central), Kanpur under Section 12AA of the Income Tax Act, 1961 dated 28.3.2013 by which the registration of the Trust under Section 12AA granted by registration dated 31.1.2006 w.e.f. 28.8.1998 was cancelled and the A.O. was directed to compute the income of the Trust as if there was no registration under Section 12A of the Act. W....
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....ced books of account for verifying the amount as required by the A.O. The A.O. noticed that the amount was not reflected in the books of account. During the assessment proceedings again an opportunity was given to the assessee explaining these entries of cash transaction with their regular books of account. Since the assesseee failed to furnish any satisfactory reply, notice was given as to why registration granted under Section 12A of the Act may not be cancelled. The Commissioner of Income Tax in his order against which appeal was allowed by the ITAT found that the assessee claimed that these papers do not belong to them. However, details written on the paper namely the name of Chitra Mangla, Add. 58, Krishna Babu Colony, Dayal Bagh, A....
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....essee and against the revenue. We may note that since conditions of grant of registration and cancellation of registration are same and the assessee satisfies that the objects of assessee trust are educational and carried out activities for achieving their objects, therefore, cancellation of registration would not be justified in the matter. No addition could be made against the assessee of unaccounted donation/ capitation fees on the basis of seized computerized paper. It may also be noted that in A.Y. 2011-12, the AO in assessment order made addition of Rs.2,40,000/- of receipt of capitation fee on recovery of Annexure A-32 which is connected with other assessee Babu Mohan Lal Arya Smarak Educational Trust and in that case it was found to....
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....red documents have not been sent to any hand writing expert for getting their opinion to prove their nexus with the assessee trust and to put liability upon the assessee. In the absence of any corroborative evidence against the assessee and considering that the issue is same as is considered in the case of Sharda Educational Trust, therefore, following the same reasons for decision, we are of the view that the cancellation of registration is not justified in this case. We accordingly set aside the impugned order of ld. CIT and restore the registration granted u/s. 12A of the IT Act to the assessee since inception. In the result, the appeal in ITA No.127/Agra/2013 of assessee is allowed. In the result, both the appeals of both the assesse....