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2018 (3) TMI 386 - HC - Income TaxCancelling the registration of assessee's Trust u/s 12AA(3) - whether the Tribunal was justified in restoring the registration under section 12A of the Act? - Held that:- This issue stand concluded against the Revenue and in favour of the respondent assessee by the order of this Court in Commissioner of Income Tax Vs. The Mumbai Metropolitan Regional Iron and Steel Market Committee (2017 (7) TMI 920 - BOMBAY HIGH COURT) and Director of Income Tax (Exemptions) Vs. Khar Gymkhana [2016 (6) TMI 489 - BOMBAY HIGH COURT] as held that the Commissioner, nowhere has given the finding that the activities of the Respondent institution are not genuine one or that the said activity carried out are not in consonance with the object of the institution. The Commissioner has merely relied on proviso to Sub-Section 2 of Section 15 of the Act, as it stood then. The said proviso has subsequently gone amendment. Tribunal justified in restoring the registration under section 12A - Held that:- As is evident from the Section 13 of the Act itself, it comes into play while applying Section 11 of the Act. It is in domain of the Assessing Officer during the assessment proceedings and not a basis for cancellation of registration. Besides, the amendment not being in the spirit of Charitable Trust, cannot be the basis of cancellation under Section 12AA(3). This is as vague as vague could be. The term “spirit of a Charitable Trust” is not defined in the Act nor elaborated in the order of Commissioner of Income Tax. In the above facts, the impugned order of the Tribunal correctly holds that the Commissioner has focused on change in the future management of the Trust rather than the object of the Trust to cancel the Registration. The amendment made in the Trust Deed which the Commissioner relies upon to cancel the Registration does not even remotely suggest any change / addition to the objects of the Trust. It has only to do with the appointment of the Chief Trustee and the manner of managing the Trust. No substantial question of law.
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