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2021 (11) TMI 508 - HC - Income TaxExemption u/s 11 - cancelling the registration granted to the assessee Trust u/s 12A - Whether Tribunal is not correct in opining that the cancellation of the registration of the assessee by the Commissioner of Income Tax (Exemptions) by exercising jurisdiction under sub-section 3 of Section 12AA was not maintainable thereby wrongly set aside the order of the Commissioner of Income Tax (Exemptions) ? - HELD THAT:- Commissioner had committed a fundamental error in cancelling the registration granted to the assessee Trust under Section 12A of the Act as far back as during the year 1995 by taking note of the activity of the Trust, which according to the assessee was in consonance with Clause 4(A) of the Deed of Trust. At the time when the registration was granted at the first instance by the then Commissioner on 14th December, 1995, the clauses and covenants as contained in the Deed of Trust were examined and the activities of the trust were found to be genuine and after recording satisfaction, registration has been granted. Therefore, such an issue could not have given rise to a cause of action for cancellation of the registration. The Tribunal had followed the decision of Tamil Nadu Cricket Association [2013 (12) TMI 833 - MADRAS HIGH COURT] to hold that the issues relating to how the funds of the Trust were employed is not germane for considering the question as to whether the activities were genuinely carried out or not. The learned Senior Standing Counsel for revenue submitted that revenue has not accepted the decision in the case of Tamil Nadu Cricket Association and a Special Leave Petition has been filed before the Hon’ble Supreme Court. We are convinced that the reason cited by the Commissioner for cancellation of the registration could not be a ground to do so as it is admittedly an issue which could be dealt with by the AO, during the course of assessment. That apart we find that the Tribunal, which is the final fact finding authority, had examined the entire facts including the conditions contained in the Deed of Trust and recorded a findings in favour of the Assessee Trust. While we exercise jurisdiction u/s 260A of the Income Tax Act we are required to consider as to whether any substantial question of law arises for consideration and not to re-appreciate the factual position. Thus we find that there is no error in the approach of the Tribunal nor the conclusion arrived at by the Tribunal.
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