2007 (1) TMI 148

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....red on December 4, 1995. Exhibit P1 is the trust deed. It applied to the respondent for getting itself registered under section 12A of the Income-tax Act, 1961 so that it can avail of the benefits under sections 11 and 12 of the Income-tax Act. Exhibit P2 is the application submitted by it. The respondent issued exhibit P3 defect memo pointing out the defects to be cured in the petitioner's applic....

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....e trust deed. The only activity carried on is running of a school. So, the application was rejected by the respondent. The relevant portion of the said order reads as follows: "Even though the trust deed contains a very large number of objectives, it is not carrying out any activities in accordance with most of them. The only activity carried on is the running of the school. In these circumstan....

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....avit resisting the prayers in the original petition. In the counter affidavit it is stated that the respondent has made an enquiry into the affairs of the functioning of the trust, it was found that for running the school the petitioner was collecting interest-free loan of Rs. 5,000 from its students at the time of admission and monthly tuition fee of Rs. 300. At present there are 255 students. So....

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.... has been relied on, as evident from the counter affidavit, to reject the petitioner's application. The counter affidavit would show that some enquiry was held behind the back of the petitioner and reliance was made on it to reject its application. So, the order has been passed in violation of the principles of natural justice. Accordingly exhibit P6 is quashed. The respondent is directed to recon....