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2017 (12) TMI 791 - AT - Income TaxRegistration granted u/s 12AA cancelled - proof of charitable services - assessee has paid donations for charity outside India - Held that:- In the present case that the Respondent has found that the assessee has paid donations for charity outside India contrary to the provisions of Section’s 11(1)(a) and 11(1)(c) of the Act. In our opinion, this may become point for consideration for disallowance during the course of assessment proceedings and it is the duty of AO to take note of all facts, while considering the same u/s 11 of the Act and thus, the ratio enunciated by the Hon’ble High Court of Madras in the case of M/s Tamil Nadu Cricket Association Vs. DCIT(Exemptions) & others reported in [2013 (12) TMI 833 - MADRAS HIGH COURT] is applicable to the issue on hand. In our opinion, the Respondent having exercising powers u/s 12AA of the Act has to satisfy that the activities of such trust or institution are genuine or not being carried out in accordance with the objects of the trust or institution and the Respondent is empowered to examine all the details of the trust or institution which has got registration u/s 12A in terms of exercising its power under sub-Section 3 of Section 12AA of the Act. We find no adverse remark made by the Respondent regarding the activities of the assessee are not in accordance with the objects and its activies are not genuine. Therefore, in our opinion, exercising jurisdiction under sub-Section 3 of Section 12AA of the Act in cancelling the registration by the Respondent is not maintainable - Decided in favour of assessee.
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