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2022 (2) TMI 883 - CALCUTTA HIGH COURTExemption u/s 11 - cancellation of registration granted u/s 12A - money laundering activities conducted by the assessee trust with school of Human Genetics and Population Health and such activities has been established in other instances - Tribunal quashing the order of cancellation of registration - HELD THAT:- The initial allegation in the show cause notice is that donation was received by the assessee and the same was returned in cash to the organisation - in the order of adjudication passed by the CIT(E) the allegation was totally different in the sense that the assessee paid cash to receive donation from the organisation. Even assuming that the name of the assessee trust figures in the list of donations given by the organisation, that by itself would not establish the allegation that the assessee was engaged in money laundering activities - CIT(E) has used the expression ‘money laundering’ without noting the serious implications which flow from use of such expression. On a perusal of Section 3 of the Prevention of Money Laundering Act, 2002 assuming that such activity was being done by a person, it is rather doubtful to bring it under the definition of “money laundering”. Apart from that, the CIT(E) in paragraph 6.1 of the order dated 17th March, 2016 mentioned that the Treasurer and Secretary of the organisation were permitted to be cross-examined but the assessee trust did not avail the opportunity but merely filed their declaration on 13th January, 2016. The correctness of this finding was considered by the Tribunal and on going through the order-sheet maintained by the CIT(E) it was found that such finding was factually incorrect. As documents which were the basis for concluding that the registration granted in favour of the assessee should be cancelled were not furnished to the assessee. Therefore, the CIT(E) having committed a fundamental error cannot be granted for one more opportunity. Therefore, the tribunal was right in rejecting the prayer for remanding the proceedings and we are also of the view that the question of granting a further opportunity to the CIT(E) on the facts of the case on hand does not arise. Thus, for all the above reasons, we find no grounds to interfere with the order passed by the tribunal. - Decided against revenue.
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