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2011 (4) TMI 126 - PATNA HIGH COURTSections 13(3) and 11(2)(b) - Cancellation of registration - payment to specified person covered u/s 13(3)- siphoning off the funds - During the period in question and earlier periods, a sum of Rs. 29,15,855 was credited to the development fund of the assessee which were not voluntary contributions of the students at the time of their admission - note that neither the learned Assessing Officer, nor the learned Commissioner of Income-tax, pursued this aspect of the matter in view of the gross finding of facts recorded against the assessee, and did not carry it to its logical conclusion. The learned authorities under the Act should have been mindful of the position that registration of an organization as a charitable institution under the provisions of section 12A of the Act leads to exemption from payment of Income-tax - Therefore, it goes without saying that such an organization will have to measure up to the strict parameters laid down in the Act to continue to enjoy the benefit of exemption from payment of Income-tax, failing which it may be deprived of its registration as a charitable institution and the benefit of exemption from payment of Income-tax. - regret to record that the learned authorities under the Act were not mindful of their responsibility, resulting in abdication of essential duties and functions, causing recurring loss of revenue.appeal. It is accordingly dismissed
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