TaxTMI 
TaxTMI 
2017 (6) TMI 556
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....relating to cancellation of registration of the assessee trust under section 12AA to the DIT(E) for examination afresh to give a finding with respect to the activities carried on by the assessee trust during the Financial year 2003-04 when the DIT (E) had arrived at a finding of fact that the assessee was not carrying on any charitable activity and was involved in misutilisation of the bank account?" 2. Brief facts are as under: Respondent-assessee is a Public Charitable Trust enjoying registration under the Income Tax Act, 1961, which enables the Trust to claim exemption on the donations received by the Trust. The objects of the Trust were in the field of education, relief to the poor and other general public charitable objects. The ac....
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.... the banking transactions undertaken with its sister concerns, in addition to the mis-utilisation of the bank account of Madhusudan Trust, whether with or without the approval of the trustees of the Madhusudan Trust. e. All steps taken by the assessee trust and its sister concerns in the subsequent years are merely attempts to give a cloak of legitimacy to this patently illegal transaction. f. The assessee trust has tried to prove that Madhusudan trust has willingly accepted the donation from it. However, there is no denying the fact that the amount has been withdrawn immediately from this account and has reached the account of the sister concerns of the assessee trust on the same day without any benefit accruing to Madhusudan Trust. Th....
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....03.2004 is concerned, the same having been passed solely on the basis of activities carried on by the assessee, i.e. deployment/application of funds; during the previous year relevant to Assessment Year 2001-02 and there being no mention as to the assessee's activities carried on during the Financial year 2003-04 is not justified. 32. Since we are of the opinion that registration could not be withdrawn with effect from 30.03.2004 solely on the basis of activities carried on during the period relevant to assessment year 2001-02, we, in the interest of justice, restore the issue relating to withdrawal of Registration to the concerned authority with the directions that the issue may be examined afresh and be decided after giving a findin....
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....or of Income Tax was persuaded to withdraw the registration granted under section 12A of the Act. 6. Another aspect that emerges from the record is that the Tribunal did not disturb these findings of the Director. In fact, perusal of the order of the Tribunal would suggest that the Tribunal approved such findings. Despite this, the Tribunal did not confirm the order of the Director but observed that such order was passed solely on the basis of the activities carried on by the assessee during the previous year relevant to the assessment year 2001-02 and therefore, being not mentioned as to the assessee's activities carried on during the financial year 2003- 04, the Director was not justified (in withdrawing the registration). The Tribun....