2012 (2) TMI 664

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d. Commissioner of Income Tax erred in observing that the activities of the appellant Trust are not genuine and not being carried out in accordance with the objects of the Trust and in that view of the matter the Ld. CIT erred in cancelling the registration granted to the appellant u/s !2A of the Income Tax Act. 2. For that the Ld. CIT ought to have properly considered and appreciate the basic facts on record and the provisions contained in the Sec. 12A and ought to have accepted the contention of the appellant that registration granted u/s 12A could not be cancelled by the authority. 3. For that the Ld. CIT ought to have taken note of the facts of the case of the appellant properly and ought not to have held that the activities of th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s of donations from and on behalf of the students for giving them admission. They are not running their activities as per clauses of trust deed and as per provisions of Income-tax Act, 1961. Therefore, the Commissioner of Income-tax, Central-III, Kolkata is satisfied that the activities of assessee-trust are not genuine and also not being carried out in accordance with the objects of the trust. Hence, the registration granted to the assessee-trust under section 12A on 05.12.2000 is hereby cancelled by invoking the provisions of section 12AA(3) of the Income-tax Act, 1961." Hence this appeal by the assessee. 3. The learned counsel for the assessee reiterated the arguments made before the ld. C.I.T. He further referring to amended clause i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as the activities of the assessee-trust is not genuine and also not being carried out in accordance with the objects of the trust. 5. We have heard the parties and perused the material placed on record. We have also carefully gone through the order of ld. C.I.T. passed u/s. 12AA(3) of the Act. The assessee's contention is that the powers conferred on the ld. C.I.T. u/s. 12AA(3) of the Act did not extend to cancellation of registration granted u/s. 12A of the Act. We observe that registration to the assessee-trust was granted u/s. 12A of the Act on 05/12/2000. Subsequently, by invoking provisions of sec. 12AA(3) of the Act, the ld. C.I.T. rejected the said registration holding the activities of the assessee being not in accordance with the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng himself about the objects of the trust or institution and the genuineness of its activities, he- (i ) shall pass an order in writing registering the trust or institution; (ii ) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant:" The combined reading of both the above sections, in our considered opinion, makes it clear that registration can be cancelled only in those cases where the registration has been granted under sub-sec. (1b) of sec. 12AA of the Act. This section nowhere empowers the ld. C.I.T. to cancel or withdraw the registration granted u/s. 12A of the Act. In the absence of such express power, in our opinio....