Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 2021 (8) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 139 - SC - Income TaxExemption u/s 11 - cancellation of registration of the Appellant granted u/s 12AA - HC setting aside the order passed by Commissioner of Income Tax (Exemption) canceling registration of the respondent Trust u/s12AA and the order passed by the Income Tax Appellate Tribunal dismissing appeals arising therefrom - HELD THAT:- The answers given to the questionnaire by the Managing Trustee of the Trust show the extent of misuse of the status enjoyed by the Trust by virtue of registration under Section 12AA of the Act. These answers also show that donations were received by way of cheques out of which substantial money was ploughed back or returned to the donors in cash. The facts thus clearly show that those were bogus donations and that the registration conferred upon it under Sections 12AA and 80G of the Act was completely being misused by the Trust. An entity which is misusing the status conferred upon it by Section 12AA of the Act is not entitled to retain and enjoy said status. The authorities were therefore, right and justified in cancelling the registration under Sections 12AA and 80G of the Act. High Court completely erred in entertaining the appeal under Section 260A of the Act. It did not even attempt to deal with the answers to the questions as aforesaid and whether the conclusions drawn by the CIT and the Tribunal were in any way incorrect or invalid. Appeal allowed - restore the order passed by the CIT and the Tribunal.
|