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2016 (6) TMI 35 - AT - Income TaxRegistration under section 12-AA cancelled - Held that:- Under section 12AA of the Act, a review what is open to scrutiny is only the pursuit of objects as registered. In the case of CIT vs. Surya Educational & Charitable Trust (2011 (10) TMI 47 - PUNJAB AND HARYANA HIGH COURT ) it has been held that the Learned CIT ought not to concern himself with the application of funds beyond examining the genuineness of the pursued of the avowed objects. Examination of the application of funds is the prerogative of the Assessing Officer during the assessment. Since there is no finding anywhere that the society has not carried out its objective of imparting education or in other words there is no finding that any activity other than education is being pursued by the society, we are of the view that the Learned CIT(Appeals) was not justified in cancelling of registration invoking the provisions of sec. 12AA (3) of the Income-tax Act, 1961. It is reiterated that only when the registered objectives are not pursued or that the very pursued of activities is bogus or sham then only a cancellation order can survive and endure. In absence of such finding by the Learned CIT, we are of the view that he was not justified in cancelling the registration granted to the appellant-assessee under section 12AA of the Income-tax Act, 1961. We thus while setting aside such cancellation order of the Learned CIT questioned before us restore the registration granted under sec. 12AA - Decided in favour of assessee
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