2011 (3) TMI 1654

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sessee is a charitable trust established on 07.10.1935. It was registered under the Bombay Trust Act on 06.01.1953. The assessee-trust has been carrying on various activities such as running a medical centre, helping poor and needy students in their education, library, cultural activities, helping poor persons conduct thread ceremonies, running a marriage bureau, etc. It has a women's wing for the benefit of women irrespective of caste, creed and religion. It also owns a building which is let out for various ceremonies and functions for rent. 3. The trust applied for registration under section 12A(a) of the Act on 06.12.2001 seeking registration from the date of its establishment. By order dated 22.02.2002 the CIT-III, Thane, refused to co....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... exempt under section 11 of the Act. Since the trustees were given absolute liberty to apply the income of the trust to any object of the trust, which included the objects which are not charitable, the CIT held that the entire income of the trust cannot be given the exemption. Consequently, he refused to renew the certificate earlier issued under section 80G(5) of the Act. He also withdrew the registration granted to the trust under section 12A of the Act, by order dated 22.02.2002. 6. It is the legality of the aforesaid order which is being challenged before us in this appeal. One of the preliminary objections of the appellant is that there is no provision in section 12AA to enable the CIT to cancel the registration earlier granted under ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... under section 12AA(3) only on and from 01.06.2010. The present order has been passed by the CIT on 11.01.2010 and therefore cannot be sustained. 7. The learned CIT DR drew our attention to section 293C of the Act. In fact even the CIT has relied on this provision in the last paragraph of the impugned order. This section is titled "Power to withdraw approval". It was introduced by the Finance (No.2) Act, 2009, with effect from 01.10.2009. Circular No.5 of 2010 issued by the CBDT on 03.06.2010, (2010) 324 ITR (Statutes) 293 explains the provisions of the said Finance Act. Paragraph 57 explains the provisions of section 293C and the same is as under: - "57. Power to withdraw approvals 57.1 Under the existing provisions of Income-tax Act....