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2017 (12) TMI 909 - AT - Income TaxRegistration granted u/s. 12A cancelled - assessee received donation in lieu of cash from M/s. Herbicure - sworn statement of Shri Swapan Ranjan Dasgupta recorded during survey relied upon - Held that:- As no material which is legally sustainable has been brought on record, therefore, the sole material which is sworn statement of Shri Swapan Ranjan Dasgupta recorded during survey cannot be the sole material as held by Hon’ble Supreme Court in Kader Khan, (2013 (6) TMI 305 - SUPREME COURT ) and moreover, we note that this statement of Shri Swapan Ranjan Dasgupta has not been tested by cross examination cannot be the basis for the impugned action of the Ld. CIT(E) and, therefore, the assessee society which is carrying out philanthropic activities is a charitable organization. So its registration granted u/s. 12A of the Act cannot be cancelled without infraction of law as contemplated u/s. 12AA(3) of the Act. As per the requirement of section 12AA(3) of the Act, the Ld. CIT(E) has to be satisfied that the activities of the trust or institution are ingenuine or are not being carried out in accordance with the object of the trust or institution. When the assessee is carrying out the object of the trust for which it was created and has applied the donation it received from M/s. Herbicure for the objects for which it has been created, the assessee society cannot be termed to be ingenuine or cannot be held to be not carrying out its activity in accordance with the object of the trust. Therefore, we set aside the order of the Ld. CIT(E) and allow the appeal of the assessee.
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