TaxTMI 
TaxTMI 
TaxTMI 
2021 (8) TMI 139
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....registration of the respondent Trust ("Trust", for short) under Section 12AA of the Income Tax Act, 1961 ("the Act" for short); and (ii) the order dated 13.09.2017 passed by the Income Tax Appellate Tribunal ("the Tribunal", for short) dismissing appeals arising therefrom. 2. The Trust was registered under Section 12AA of the Act vide order dated 06.08.2010 and was also accorded approval under Section 80G(vi) of the Act. 3. In a survey conducted on an entity named School of Human Genetics and Population Health, Kolkata under Section 133A of the Act, it was prima facie observed that the Trust was not carrying out its activities in accordance with the objects of the Trust. A show cause notice was, therefore, issued by the CIT on 04.12.2015.....
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....er funds through RTGS to the following seven (7) persons: 1. Santwana Syndicate 2. P.C. Sales Corporation 3. Kalyani Enterprises 4. Riya Enterprises 5. Laxmi Narayan Traders 6. Hanuman Traders 7. Rani Sati Trade cum Pvt. Limited These payments were booked as capital expenditure under the head Building. Q. 14. In response to the earlier question you have stated that you were "instructed". Who gave you the instruction? Ans. I can remember only one name right now, that is Shri Gulab Pincha, Mob No. 9831015157. He was the key person for providing a large part of bogus donation received which was immediately returned back to the different parties in the guise of payments towards capital expenditure in building. We do now know ....
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....r benefit of trustees/members of the trusts and societies. Survey u/s. 133A conducted in the case of assessee elaborates the nature and volume of transactions in the alleged activities. 6.2. Looking at the volume and depth of the illegal activities performed and indulged by the society to use the provisions of the I.T. Act providing support and encouragement to the organizations for doing the benevolent activities, assessee society not only opened the pandora's box defying the sole benevolent purpose of provisions as per the I.T. Act, but also challenged the cause of the constitutional provisions by maintaining certain well-needed objectives as per the Act and performing the reverse in reality. 6.3 Based on the facts and circumstantial ....
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....ed to the Trust under Section 80G of the Act was also cancelled. 6. The matter was carried in appeal by the Trust by filing Income Tax Appeal Nos.756 & 912 /Kol/2016 before the Tribunal. After considering the entire material on record, the Tribunal concluded as under: "13. We have given a very careful consideration to the rival submissions. It is clear from the statements of Secretary and Treasurer of SHG and PH that they were accepting cash and giving bogus donations. In the statement recorded in the survey conducted in the case of SHG and PH on 27.1.2015, it was explained that SHG&PH's source of income was the money received in the form of donations from corporate bodies as well as from individuals. In the said statement it was explai....
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....ee. Even in the proceedings for cancellation of registration, the Assessee has not taken any stand on all the evidence against the Assessee. In such circumstances, we are of the view that the conclusions drawn by the CIT(E) in the impugned order which we have extracted in the earlier part of the order are correct and calls for no interference. It is clear from the evidence on record that the activities of the Assessee were not genuine and hence their registration is liable to be cancelled u/s. 12AA(3) of the Act, and was rightly cancelled by the CIT(E). We therefore, uphold his orders and dismiss both the appeals by the Assessee." With this view, the appeals preferred by the Trust were dismissed. 7. The Trust being aggrieved, filed Income....
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.... respondent also has not been able to prove any complicity of the appellant trust in any illegal, immoral or irregular activity of the donors. In that view of the matter, we answer the question (i) in the order dated 4th July 2018 in the negative and in favour of the assessee. We have not found it necessary to go into the issue raised in question (ii). The order of cancellation of the registration of the trust is set aside. The respondent is directed to restore its registration within three weeks of communication of this order. However, this will not bar any action against the appellant in respect of any future activities. The appeal is hereby allowed to the extent above." 10. In this appeal, we have heard Mr. N. Venkataraman, learne....