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2021 (4) TMI 1224 - HC - Income TaxCancellation of registration u/s 12AA(3) - Principal Commissioner or Commissioner power to cancel registration - HELD THAT:- As scope of Sections 11, 12, 12A and 12AA of sub-clause (3) in the aforementioned paragraphs, the Principal Commissioner or Commissioner was vested with the power even prior to 01.06.2010 to cancel the registration made u/s 12A of the Act, if the Commissioner is satisfied that the activities of such Trust or Institution are not genuine or are not being carried out in accordance with the objects of the Trust or Institution, as the case may be, and he shall pass an order in writing cancelling the registration of such Trust or Institution. In the present case, the Commissioner of Income Tax in impugned proceedings considered the merits and demerits of the case and assigned reason for cancellation of registration, which reads as under:- “3. Coming to the merits, search and seizure operations on 06.06.2007 at your premises, inter alia, have brought to light the following violations: a) Capitation Fee was collected by the assessee Trust. b) The funds of the Trust at least to the tune of ₹ 22 crores have been misused by the Trustees. c) The provisions of Tamil Nadu Educational Institutions [Prohibition of Capitation Fee] Act, 1992 have been grossly violated. d) The provisions of Section 11(2) of the I.T. Act, 1961, have not been adhered to.” The reasons assigned for the purpose of cancellation are undoubtedly in consonance with the powers conferred on the Commissioner under sub-clause (3) to Section 12AA of the Act and therefore, the order of cancellation can at any stretch of time be stated as infirm or perverse.
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