TaxTMI 
TaxTMI 
2017 (7) TMI 1246
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....sessee is against the cancellation of registration as per the impugned order passed by the Commissioner of Income-tax (Exemptions) dated February 15, 2016 cancelling the registration under section 12AA(3) of the Act with effect from April 1, 2014. 3. The learned counsel for the assessee submitted that the identical issue under the identical facts was disposed of by this very Bench of the Tribunal in the case of Fateh Chand Charitable Trust v. CIT (Exemptions) in I. T. A. No. 792/Lucknow/2015 vide its order dated March 18, 2016- [2016] 49 ITR (Trib) 276 (Lucknow) and the Tribunal is bound to follow the order of the co-ordinate Bench. 4. The learned Departmental representative also agreed that the facts of the present case are similar to the facts in the case of Fateh Chand Charitable Trust v. CIT (Exemptions) in I. T. A. No. 792/Lucknow/2015- [2016] 49 ITR (Trib) 276 (Lucknow). 5. The learned counsel for the assessee also pointed out that the similar issue has been decided by this very Bench in I. T. A. No. 780/Lucknow/ 2015 in the case of Bhagwat Saran Educational Trust v. CIT (Exemptions) vide order dated March 21, 2016. It was further submitted that a similar issue has been de....
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....we extract paragraph 8 as under : '8. That your goodself has, in your notice dated November 13, 2015, alleged that the assessee has received a donation of Rs. 1,00,00,000 from M/s. Herbicure Health Care Bio Herbal Research Foundation in the assessment year 2011-12 by paying an amount of Rs. 1,00,00,000 in cash to M/s. Herbicure Health Care Bio Herbal Research Foundation itself. This allegation is totally untrue as nothing of this sort has been written or mentioned in the confirmation, given by M/s. Herbicure Health Care Bio Herbal Research Foundation. Till date no evidence to the contrary has been made available to the assessee which could substantiate your honour's allegation that the amount of Rs. 1,00,00,000 was paid by the assessee in cash to the donor in exchange of donation received by cheque. However, in case, there is any authentic material available with your honour which could throw some light on this issue, the same may be given to the assessee so that a specific reply on the same could be submitted on it.' 14. It is also evident from record that the report received from the learned Commissioner of Income-tax (Exemptions), Kolkata, and the statement of ....
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....ious judicial pronouncements in this regard and in the case of Andaman Timber Industries v. CCE [2016] 38 GSTR 117 (SC) ; [2015] 62 taxmann.com 3 their Lord ships of the hon'ble apex court has categorically held that not allowing the assessee to cross-examine the witness by the adjudicating authority, though the statement of those witnesses were made basis of the impugned order, is a serious flaw which makes the order nullity inasmuch as it amounted to violation of the principles of natural justice because of which the assessee was adversely affected. Their Lordships have, however, held that it is to be borne in mind that the order of the learned Commissioner of Income-tax was based upon the statements given by the aforesaid two witnesses. Even when the assessee disputed the correctness of the statement and wanted to cross-examine, the adjudicating authority did not grant this opportunity to the assessee. The hon'ble apex court accordingly held that in the testimony of these two witnesses is discredited, there was no material with the Department on the basis of which it could justify its action. 17. We have also examined the arguments of the assessee that even if receipt ....
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....he Act cannot be invoked. The relevant observations of the Tribunal are extracted hereunder for the sake of reference (page 400) : 'Though the Revenue has taken a plea that for anonymous donation, the provisions of section 115BBC of the Act can be invoked but in the instant case where the assessee has filed various documents to prove the identity of the donors, these donations cannot be called to be anonymous. So far as applicability of the provisions of section 68 of the Act is concerned, it has been held by various High Courts including the jurisdictional High Court that once donation received was taken as income of the assessee which was applied for charitable purposes, the provisions of section 68 of the Act cannot be invoked. Since we do not find any infirmity in the order of the learned Commissioner of Income-tax (Appeals), we confirm the same as he has adjudicated the issue in the light of various judicial pronouncements. Accordingly we confirm his order.' 22. Undisputedly, the assessee has taken receipt of donation as part of its income and the same was applied for charitable purposes and these facts are borne out from the consolidated balance-sheet of the asses....
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....ds but the grievance of the assessee is only against the cancellation of recognition granted to the assessee under section 80G(5)(vi) of the Act as per the impugned order passed by the Commissioner of Income-tax (Exemptions) dated February 15, 2016 with effect from April 1, 2014. 10. We have heard the rival submissions, carefully considered the same along with the order of the Commissioner of Income-tax (Exemptions). We noted that in this case the Commissioner of Income-tax (Exemptions) cancelled the recognition under section 80G of the Act by observing as under : "7. It is clear from the above that the trust is not doing any charity but it is making clear profit. Reliance is also placed in the case of Scientific Educational Advancement Society v. Union of India [2010] 323 ITR 84 (P&H) decided on February 10, 2009 CWP No. 2052 of 2009 of the hon'ble Punjab and Haryana High Court and Joginpally BR Educational Society, Hyderabad v. CIT [2013] 1 ITR (Trib)-OL 639 (Hyd) I. T. A. No. 585/Hyd/2012 of the hon'ble Income-tax Appellate Tribunal, Hyderabad. In this case it is not and cannot be the objective of the assessee-trust to manage donation from another trust/society by giv....