TMI Blog2012 (2) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee u/s 12A(a) would hold good – Decided against the Revenue. - Tax Case (Appeal)No.641 of 2011 - - - Dated:- 25-1-2012 - Mr.Justice D.MURUGESAN, Mr.Justice P.P.S.JANARTHANA RAJA, JJ. For Appellant : Mr.T.Ravi Kumar JUDGMENT D.MURUGESAN, J., This Tax Case Appeal is at the instance of the Commissioner of Income Tax, Madurai, questioning the order dated 30.06.2011 passed by the Income Tax Appellate Tribunal in I.T.A.No.594/MDS/2011, by raising the following substantial questions of law. (i) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the registration granted to the assessee under section 12A(a) would hold good, even t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the registration granted under section 12A(a) was cancelled. On a challenge to the said order, the Appellate Tribunal has found that the order of the Commissioner was not justified as the power to cancel could be only traced out to section 12AA(3) and in the absence of any activity carried on by the trust contrary to the objects, the registration cannot be revoked. With that finding, the Tribunal has allowed the appeal filed by the Society. Challenging the said order, the present appeal has been filed. 4. The relevant provisions of section 12AA of the Income Tax Act read as under: "12AA. Procedure for registration: (1) The Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of a trust or institution, the Commissioner should satisfy himself about the genuineness of the activities of the trust or institution. In order to satisfy himself, the Commissioner may also make such enquiry as he may deem necessary in that behalf. In the event the Commissioner satisfies himself that the trust is entitled to registration keeping in mind the objects, shall grant registration in writing in terms of section 12AA(1(b)(i) of the Act. In the event the Commissioner is not satisfied, he shall refuse such registration in terms of section 12AA(1)(b)(ii) of the Act. Once such a satisfaction is arrived at by the Commissioner to grant, such registration cannot be cancelled by following the very same provision of section 12AA(b)(i) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grammes of the father of the nation, Mahatma Gandhi. (c) To organize meetings, seminars, symposium and conferences to propagate Gandhian and Sarvodaya Ideologies. (d) To do all other acts and things incidental to and necessary in the furtherance of the said objects. (e) To apply the profit derived by the society to the activities connected with spreading and propagating of Gandhian and Sarvodaya Ideologies and to help the Sarvodaya movement". 8. The Commissioner of Income Tax, before granting the registration, had gone into the above objects and satisfied himself for grant of registration. Subsequently, by the order of the Commissioner of Income Tax dated 31.06.2011, the very same objects were considered and were found not t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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