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2013 (8) TMI 407 - AT - Income TaxCancellation of registration of Trust granted under section 12AA of the Income Tax Act, 1961 - The assessee had given donations to other charitable institutions in line with one of its objects – Held that:- It is not the case of the revenue that the trust was not carrying on its activities in accordance with its objects - Assessee had followed the procedure of law and registered itself with the Registrar of Societies before moving the application for registration under section 12A of the Act. In the totality of the facts and circumstances of the case, the supplementary Trust Deed executed by the assessee on 25.05.2007 is nothing but the combination of the all clauses of the earlier two Trust Deeds and the aims and objects in all the deeds remain the same. In the absence of the Commissioner of Income-tax bringing on record any evidence to establish that the assessee was not carrying on its activities in accordance with its objects, we find no merit in the order passed by the Commissioner of Income-tax in withdrawing the registration granted to the Trust. Merely because the Settler of the trust has claimed deduction under section 80G of the Act on the donations made to the assessee Trust, does not merit the cancellation of registration granted to the Trust - No merit in the objections raised by the Assessing Officer that the trust was running its activities from where another trust was also being run under the name and style of M/s Durga Mani Foundation, which is the second assessee before us and also another concern was operating from the said address. In the totality of the facts and circumstances of the case, we reverse the order of Commissioner of Income-tax passed under section 12AA(3) of the Act and hold that the assessee is entitled to the registration already granted to it under section 12AA of the Act - Grounds of appeal raised by the assessee are allowed – Decided in favor of Assessee.
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