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2019 (10) TMI 1539 - AT - Income TaxExemption u/s 11 - cancelling the registration granted u/s.12AA - sale proceeds from sale of land for development - HELD THAT:- Neither in the written submissions nor before the Tribunal nor in the reply to the show cause issued by the CIT(E), it has been mentioned or explained by the appellant that the sale proceeds from sale of land for development have been used or will be used for the development of charitable objects of the trust. Therefore, this factum was sufficient for CIT(E) for satisfying himself that the activities of the trust are not genuine or are not being carried out in accordance with the objects of the Trust. In this situation, the CIT (E) has very well empowered to pass order under section 12AA(3) of the Act cancelling the registration. We reached to a logical conclusion that the CIT(E) was right in cancelling the registration granted to the assessee on 7.5.2012 as the Pujari of the trust changed the original trust deed granted in 1948 and subsequent trust deed in 1987 against the wishes of the founder. The reasons stated by the appellant for sale of land of the trust for development is also not genuine, bonafide and thus, it is crystal clear that the activities of the trust were not genuine as it has violated the objects of the trust as well as the transferring the property of the trust without any good cause against the interest of trust. Accordingly, grounds of the assessee being devoid of merits, is dismissed.
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