TaxTMI 
TaxTMI 
2016 (12) TMI 1420
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....lding the activities of the appellant institution as non-genuine and without holding the activities of the appellant not being carried out in accordance with the objects of the appellant institution, i.e. without assuming jurisdiction in accordance with law. 2. That Ld. CIT has erred in law and on facts in canceling the registration u/s 12AA(3) by making such incorrect observations having no bearing on the applicability of section 12AA(3). 3. That in any view of the matter and in any case, the action of Ld. CIT in withdrawing/cancelling the registration and that too with retrospective effect, under section 12AA(3) is bad in law and against the facts and circumstances of the case. 4. That having regard to facts & circumstances of the case....
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....nse to the same, Assessee's counsel attended the proceedings and he has stated that the assessee is doing charity and the surplus funds of the assessee trust have been used only for the purposes of objects of the trust. Copy of tickets of the passengers who undertook the journeys with the assessee society also filed and assessee relied upon the following case laws. (i) Disha India Micro Credit vs. CIT (ITAT Delhi) (ii) CTR Encylopaedia on Indian Tax Laws (ITA No. 191 Bang/2009) (iii) Gaur Brahmin Vidya Pracharini Sabha vs. CIT (ITA No. 1905/Del/2009) (iv) Padanilam Welfare Trust vs. DCIT (ITA No. 444/Mds/2010) (v) Director of Income Tax (Exemptions) vs. The Chartered Accountants Study Circle (2012) 250 CTR (Mad) 70. From the perusal o....
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....r if in between tours, some religious discourse may have led to imparting some knowledge and helping human development. Ld. CIT further observed that since this is absolutely of no consequence as during religious tours people normally are in that state of mind and listen to or sing bhajans/ religious songs during the journey. In view of the above, the registration granted under section 12AA of the Income Tax Act, 1961 vide order dated 8.10.2008 was withdrawn vide order dated 26.3.2013 passed u/s. 12AA(3) of the I.T. Act, 1961 by the CIT, Dehradun. 4. Aggrieved with the order dated 26.3.2013, Assessee is in appeal before the Tribunal. 5. Ld. Counsel of the Assessee has stated that Ld. CIT has erred in cancelling the registration u/s. 12AA(....
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.... Jauhar Trust vs. CIT 63 DTR 416 - DIT(E) vs. Karnataka Industrial Area Development Board (2014) 219 Taxman 0539 (Karnataka) - DIT(E) vs. Khar Gymkhana - ITA No. 2349 of 2013 dated 6.6.2016 - Hon'ble Bombay High Court. In view of the above, he stated that the action of the Ld. CIT in cancelling the registration u/s. 12AA(3) is bad and the same may be cancelled. 6. On the other hand, Ld. DR relied upon the order of the Ld. CIT and stated that from the perusal of the statement of accounts of the assessee it has been observed that the only object which is being followed is related to trips to various religious places. The modus operandi of the assessee is the same as any tour operator. He further stated that on perusal of the pamphlets iss....
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....tion was granted u/s. 12AA to the assessee on the basis of objects and activities as mentioned at page no. 1 of the impugned order and these very objects and activities are being carried out by the assessee, therefore, registration cannot be cancelled. We further note that the AO in his assessment order dated 22.1.2016 relevant for the AY 2013-14 passed u/s. 143(3) of the I.T. Act, 1961 vide para no. 1 has observed that the assessee is engaged in the activity of organizing tours to religious and historical places in India for senior citizens. The society is purely religious and works for the charitable purposes. He further observed that if the society would have been carrying on the business activity for the motive of profit then it would h....
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....pugned order to the above effect and only objection of the Ld. CIT was that the assessee was pursuing the said objects on commercial line - a ground which is not permissible ground u/s. 12AA(3) as held in CIT vs. Sarvodaya Ilakkiya Pannai 343 ITR 300 (Madras High Court). 7.3 We further find that Ld. CIT observed that the assessee is charging a fee for the tour and hence came to conclusion that the assessee basically a tour operator. However, in August, 2008 when the journey was organized out of 294 people who undertook the journey, 243 people paid and the remaining 51 were taken free of cost. Hence, there is no profit motive. 7.4. We further find that second objection of the Ld. CIT was relating to charging of fee from the passengers of T....