2018 (3) TMI 386

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.... the order dated 21st March, 2012 of the Commissioner of Income Tax cancelling the registration of the respondent assessee's Trust under Section 12AA(3) of the Act. 3. Mr. Tejveer Singh, learned Counsel for the Revenue urges only the following reframed questions of law for our consideration : (i) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in restoring the registration under section 12A of the Act? (ii) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in restoring the registration under section 12A without appreciating the fact that as a result of amendment to the trust deed dated 04.04.2005, the absolute control ove....

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....Thus, cancelled the registration. (b) In appeal, the Tribunal in the impugned order while dealing with the cancellation of the registration on the basis of the amendment to the Trust Deed noted the fact that the Commissioner has not appreciated the difference between the objects of the Trust and powers / management of the Trust. The amendment according to the Tribunal dealt with the powers of the management of the Trust rather than the objects of the Trust. Thus, set aside the order of the Commissioner cancelling the registration. (c) Mr. Tejveer Singh, learned Counsel appearing for the Revenue placed reliance upon an order dated 22nd January, 2018 passed in the Principal Commissioner of Income Tax Vs. Maharashtra Cricket Association ....

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....ciation (supra) will not warrant admission of the question as raised herein. We further note that cancellation of registration of Trust under Section 12AA(3) of the Act is only in two contingencies, one the activities of the Trust are not genuine or the trust is not being carried out in accordance with the objects of the Trust. In this case, undisputedly, the cancellation is not on the above two grounds but on the basis of breach of Section 13(1) (c) of the Act and against the spirit of Charitable Trust. None of these would justify cancellation. As is evident from the Section 13 of the Act itself, it comes into play while applying Section 11 of the Act. It is in domain of the Assessing Officer during the assessment proceedings and not a bas....