2009 (8) TMI 1150

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.... ORDER T.K. Sharma, J.M. : The assessee-trust has filed this appeal against the order dt. 18th April, 2007 of the Director of IT (Exemption), Ahmedabad passed under section 12AA(3) of the IT Act, 1961 withdrawing the registration granted under section 12AA on 7th July, 2005. 2. The assessee-trust applied for registration under section 12AA in Form No. 10A on 20th May, 2004 and registratio....

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.... 3. Having heard both sides, we have carefully gone through the impugned orders of the authorities below. Sub-section (3) of section 12AA of the Act empowers the CIT to cancel the registration of a trust or institution granted under clause (b) of sub-section (1) of section 12AA when subsequent to grant of registration the CIT is satisfied that activities of trust or institution are not genuine ....

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....th July, 2005 and exemption under section 80G on 7th July, 2005. Subsequently, by the impugned order, the learned Director of IT (Exemption), cancelled the registration. Power regarding cancellation of registration is contained in sub-section (3) of section 12AA which was inserted by the Finance (No. 2) Act, 2004 w.e.f. 1st Oct., 2004, which is reproduced as under : "(3) Where a trust or an ins....

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....al of the same, no activities are carried out by the trust. There is no violation of any of the provisions contained in the Act. Merely, all the trustees are family members, it does not mean that trust is not a public trust. This proposition finds support from the decision of Hon'ble Supreme Court in the case of Deoki Nandan v. Murlidhar & Ors. AIR 1957 SC 133 (copy placed on record). As a mat....