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2019 (1) TMI 989 - AT - Income TaxCancellation of registration granted to the assessee society u/s 12A - it was observed that assessee society has sold land belonging to it without permission of CIT (E) which makes its activities ingenuine - Addition u/s 68B - acceptance of additions by the assessee contrary to legal position - Held that:- When the assessee society has not become the owner of the land in question, there is no question of indulging in into ingenuine activities or that the activities of assessee society are not being carried out in accordance with the object of the Trust. It is nowhere the case of the CIT (E) that the assessee society is not running in accordance with its aims and objects. No doubt, assessee society has entered into a sham transaction by virtue of the sale deeds dated 24.07.2006 and 26.09.2007 qua the land in question in order to misrepresent AICTE to get the approval for setting up a polytechnic college, but this fact has not proved in any manner that the activities of the assessee trust are not genuine or are not being carried out in accordance with its aims and objects. Rather in the remand report it is recorded by the AO that assessee society is running an educational institution having 1000 students on its roll with huge teaching staff and no complaint has been received as to its activities. Contention of the DR that once the addition made by the AO u/s 69B of the Act qua the sale of land in question for a consideration of ₹ 7,50,000/- by the assessee society has been accepted by the assessee, the assessee society is estopped from claiming that it has not transferred the land in the name of Darshan Singh, is not sustainable as discussed in the preceding paras that it cannot be treated as a sale transaction at all being without consideration, factum of merely accepting the addition made by AO u/s 69B, would not change the legal position. CIT (E) has erred in cancelling the registration granted to the assessee society u/s 12A - Decided in favour of assessee.
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