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2013 (6) TMI 131 - HC - Income TaxRenewal of extension u/s 80-G rejected - registration under section 12-A also canceled - Held that:- According to the finding recorded in the impugned order, the corpus donation received by the Trust upto 31.5.2005 was Rs. 5,33,000/- as it was formed of Rs. 5000/- only. Most of it was utilized in constructing the shopping complex. The balance sheet as on 31.5.2005 further reflects that an amount of Rs. 7,96,821/- has been spent on construction. On the other hand, the petitioner had applied only meager amount of its income for running homeopathic dispensary. Though petitioner is making tall claims of dispensing medicines free of cost, but it had spent small amount of Rs. 12,325/- on medicines in the year 2004-05 and Rs. 9490/- on medicines during the period of 2003-04. Admittedly, till date, the entire so called charitable activities of the petitioner-Trust remained confined to two rooms on the ground floor of premises No 33/70-72, Topi Bazar, Chowk, Kanpur which were admittedly made available to it free of cost since the Trust came into existence. Thus admitted fact of record reveals that there has been no expansion of any charitable activities. On the other hand, the petitioner-Trust under the guise of constructing a Homeopathic hospital and dispensary has rather constructed shopping complex and major part of it has already been let out. The petitioner-Trust also does not dispute that its expenditure on medicines during successive years had remained static and also could not place any material to show that the figures mentioned in the impugned order relating to the expenditure made in the name of charity is in any manner perverse - CIT had rightly withdrawn the exemption granted under section 80-G of the Act. Challenge the notice u/s 12A (3)- Held that:- Suffice it to say that it is merely a show cause notice and challenge to it at this stage is premature. It is open to the petitioner to file its reply to the show cause notice against purposed action before the CIT and in such proceedings it is open to the petitioner to produce all such evidence which may justify its claim for continuation of its registration as a charitable institution. See Madhya Pradesh Madhyan Vs. CIT.(2002 (2) TMI 56 - MADHYA PRADESH High Court) - writ petition is dismissed with liberty to the petitioner to file its reply to the show cause notice.
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