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2019 (2) TMI 181 - SC - Income TaxCancellation of Registration u/s 12AA - charitable activity - bogus donation - Held that:- In the proceedings initiated for the cancellation of registration, mainly it was the case of the assessee that proceedings for cancellation were initiated only on the ex-parte statement of the representative of the donor, without giving any opportunity to the assessee. Though a survey was also conducted on the assessee, but nothing adverse was found during such survey to support the case of the appellant, to cancel the registration. Also brought to our notice the various provisions of the Act but, at the same time, in support of the arguments that all donations are not exempted, but having regard to the reasons recorded in the impugned order, it is not necessary for us to delve deep at this stage. From the perusal of the order passed by the High Court, it is clear that the High Court has allowed the Writ Petition mainly on one ground, namely, that one bogus donation would not establish that the activities of the trust are not genuine. A reason assigned by the High Court is erroneous and runs contrary to the plain language of Section 12AA(3). In view of the serious allegations made against the respondent trust, it is a matter for consideration of the issue, after giving opportunity as pleaded by the respondent but the High Court has committed error in entertaining the appeal against the remand order passed by the appellate- authority, and in quashing the order of cancellation of registration. We are of the view that the order impugned is liable to be set aside and the same is, accordingly, hereby quashed and set aside.
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