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2021 (8) TMI 421 - AT - Income TaxExemption u/s 11 - withdrawal of registration under s.12AA of the Act granted to the assessee earlier and consequent denial of benefits accruing from such registration - information received by the department from its counterpart i.e. CIT(E), Kolkata that the donor to the assessee are indulging in money laundering through receipt of bogus donation from various corporates and non-corporates - Addition as reliance of statement obtained in the course of survey proceedings in the case of the donor - HELD THAT:- It is a settled principle of law that the onus lies on the person who alleges untruthfulness against the other persons. In the instant case, the allegation has been made on behalf of the Revenue for adversial conduct of the assessee. It is thus the duty of the Revenue to comply with the sacrosanct principles of natural justice and grant opportunity to the assessee for rebuttal of evidences in possession of the Revenue. The registration already granted cannot be withdrawn arbitrarily and in a light hearted manner giving retrospective effect. All pleas noted above and other arguments and position of law that were canvassed on behalf of the assessee requires proper appraisal and disposal thereof in an objective manner - order of the CIT(E) requires to deal with various pleas of the assessee raised to defend the registration granted. The doctrine of legitimate expectations demands that the assessee should be made privy to the tangible evidences in corroboration of statement sought to be relied upon. Similarly, the cross examination of deponent’s statement is incumbent to prevent miscarriage of justice. As told in the open Court, the re-registration application of the assessee has been accepted by the Revenue recently and registration has been granted from a prospective date. All these facts require proper consideration. CIT(E) while cancelling the registration appears to have wrongfully placed the onus of proving bonafides of donations on the assessee without showing reasons/evidence for drawing adverse conclusion on a registered trust. The imperatives of basic procedure have not been adhered while resorting to drastic action of cancellation. We accordingly set aside the impugned cancellation order and restore the issue back to the file of the CIT(E)/competent authority to pass a speaking order in this regard - Appeal of the assessee is allowed for statistical purposes
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