TaxTMI 
TaxTMI 
2018 (11) TMI 1056
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....ib) (S.N.) 102 (Bang) for the assessment year 2011-12 on August 19, 2016. 2. The learned Tribunal, by the impugned order dated August 19, 2016 set aside the order of the learned Commissioner of Income-tax, Davanagere, annexure-B dated December 19, 2013 by which the said authority cancelled the registration of the respondent-assessee charitable trust under section 12AA(3) of the Income-tax Act. 3. The said authority cancelled the registration giving the findings that the respondent-assessee trust had received some foreign remittances and made over the said remittances to another charitable trust which was newly constituted and known as M/s. Malankara Catholic Diocese of Puttur. The authority found that there was no clause of the object....
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....s the case may be, he shall pass an order in writing cancelling the registration of such trust or institution : Provided that no order under this sub-section shall be passed unless such trust or institution has been given a reasonable oppor tunity of being heard.' One of the conditions to be satisfied are either activities of the trust are not genuine or the activities are not being carried out in accord ance with the objects of the trust. In this case second clause is attracted as transfer is ultra vires to objectives. Therefore, registration granted to trust vide proceedings in No. T- 583/81/12A/CIT/DVG/04-05 dated April 27, 2005 is hereby with drawn. (Sd. . . . .) S. Radhakrishna,....
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....ion and transferring the same to another trust. The provisions of section 12AA(3) mandates the cancellation of registration on satis faction of either of twin conditions, i.e., activity of the trust are not genuine or are not being carried out in accordance with the objects. When there is no change either in the objects of the assessee-trust during the year under consideration or any diversion of the activity from the earlier year, giving money to another trust would not amount to change of activity of the trust or the activities carried out by the assessee are not in accordance with the objects. However it may be a subject matter of application of money for the purpose of objects of the trust which falls under section 11 of the Act. Theref....
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....f such funds by the assessee-trust to M/s. Malankara Catholic Diocese of Puttur was made because the money in question was received with a specific direction from the donor to make over the said amount to the said newly formed M/s. Malankara Catholic Diocese of Puttur. Later on the said M/s. Malankara Catholic Diocese of Puttur was also registered as a charitable trust under the provisions of sections 11 and 12 of the Income-tax Act, 1961. 6. Having heard the learned counsel for the appellant-Revenue, we do not find any perversity or illegality in the findings of the Appellate Tribunal. The same are based on cogent and relevant evidence. We do not find any negative stipulation in the memorandum of association by the respondent- assessee ....