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2018 (11) TMI 1056 - HC - Income TaxCancellation of registration of assessee charitable trust u/s 12AA(3) - assessee trust had received some foreign remittances and made over the said remittances to another charitable trust which was newly constituted and known as M/s. Malankara Catholic Diocese of Puttur - Held that:- No negative stipulation in the memorandum of association by the assessee trust prohibiting any such transfer of funds to another charitable trust which was also registered under the provisions of the Income-tax Act although some of the remittances were transferred to them prior to its registration. No evidence for misuse of such foreign contribution/donation is brought on record by the Revenue authorities before cancelling such registration. The assessee clearly stated before the authority that since the remittances were received for the specific purpose of being made over to the said M/s. Malankara Catholic Diocese of Puttur, therefore they transferred the funds. The admission of the error on the part of the assessee- trust appears to have been, though uncalled for, made in right earnest and in a bona fide manner. No violation of any terms of the clause of the trust deed or memorandum of association is admitted or otherwise established on record - No ultra vires or illegal activity on the part of the respondent-trust - decided in favour of assessee.
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