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2014 (1) TMI 1536 - HC - Income TaxWhether respondent CIT has right to cancel the registration granted to the appellant trust u/s 12AA - Held that:- Even after grant of registration under Section 12A of the Act, if the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, he is entitled to pass orders cancelling the registration after granting opportunity. Bombay High Court in the case of Sinhagad Technical Education Society [2012 (3) TMI 262 - BOMBAY HIGH COURT] pointed out that the effect of the provision is to cancel the registration of the trust when the activities of the trust are not genuine or are not being carried out in accordance with the objects of the institution and such law cannot be regarded as a retrospective alteration of the law. It was further held that cancellation of registration of a trust on the ground that the activities of the trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution cannot be construed as a conferment of arbitrary power to the Commissioner. In the assessee’s case, the Commissioner of Income-tax found that 1971 society had not filed return of income which suggests that there were no activities undertaken by the said 1971 Society/Association - After the new trust was formed in 1987 viz., "Sri Vidya Mandir Trust", the 1971 Society does not have any objects and even if the Society has any other objects, those objects ceased to exist after registration of the 1987 Trust, when all its assets and liabilities were transferred and all activities ceased - Sub Section (3) of Section 12AA of the Act has to be strictly followed and the authority has to deal with even those cases having registration granted to the trust under the erstwhile provision – The CIT was justified in cancelling registration granted to trust – Decided against assessee.
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