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2023 (8) TMI 380 - AT - Income TaxRegistration u/s 10(23C) - CIT cancelled the registration by invoking clause (b)(ii) of the 15th proviso to section 10(23C) of the Act, pursuant to the reference made by the AO - present case is that of survey - HELD THAT:- We have noted that the survey party found certain expenses not properly vouched, which were deficient in some aspects. No quantification of such vouchers w.r.t. the books has been done and simply a surrender of Rs. 9.00 crore came to be made by the assessee. This shows that either the statement was recorded unintentionally u/s 131(1); or as a smart move to get rid of the compliance of the rigid requirement of having corroborative evidence for surrender in the statement u/s 133A(3). We leave this issue here only by making it clear that the discussion anent to the legitimateness and legality of surrender is made only to examine the factual matrix of the case in the context of cancellation of registration. It has nothing to do with the assessments based on such surrender, which have already attained finality. As manifest that the edifice of cancellation of registration has been erected on the statement of the trustee recorded during the course of survey action. Arguendo, it is presumed that the contents of the statement have a binding force and has evidentiary value, still it does not bring the case within any of the ‘specified violation’. The 15th proviso to section 10(23C) unambiguously provides that - ‘the Principal Commissioner shall, pass an order in writing cancelling the approval of such fund or institution or trust if he is satisfied that one or more specified violation has taken place.’ Thus, it is established that the occurrence of one or more ‘specified violations’ is sine qua non for cancellation of registration. Since the assessee did not commit any specified violation, we are satisfied that the impugned order, cancelling the registration, is untenable. The same is, therefore, overturned. Both the sides are in agreement that the facts and circumstances of the other appeal by the related trust in are mutatis mutandis similar. Following the view taken hereinabove, we set aside the impugned order cancelling the registration originally granted u/s. 10(23C)(vi) of the Act. Appeal of assessee allowed.
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