TaxTMI 
TaxTMI 
2021 (8) TMI 139
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....assed by Commissioner of Income Tax (Exemption) ("CIT" for short) canceling 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....
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....es. Q. 13. Who were the intermediaries and what were the modes of returning the money? Ans. We were instructed to transfer 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 ....
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....it u/s 11 to encourage medical relief to the poor and needy persons, promote education among masses and support to the poor section of the society. But time and again these provisions have been misused for personal need and for 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 provis....
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....activity of general public utility envisaged the Income Tax Act as laid down in Section 2(15). The CIT, therefore, invoked the provisions of Section 12AA(3) of the Act and cancelled the registration granted under Section 12AA of the Act w.e.f. 01.04.2012. Consequently, the approval granted 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 cas....
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....ions were by third parties and the same were not binding on the Assessee. However, in a survey conducted in the case of the Assessee on 24.8.2015, the Managing Trustee of the Assessee admitted that it gave cash and got back donations. We have already extracted the statement given by the Managing Trustee. 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....
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....ed the appeal with following observations: "On the basis of the evidence and the authorities cited before the adjudicating bodies below, we say that the respondent revenue has not been able to establish the case so as to warrant cancellation of the registration of the appellant trust under Section 12AA(3) of the Act. The 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 ....