TMI Blog2014 (6) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... nditions mentioned in Section 12-AA(3) of the Act, namely, that the activities of such trust was not genuine or was not being carried out in accordance with the objects of the trust – thus, there was no error in the order of the Tribunal and as such no substantial question of law arises for consideration – Decided against Revenue. - Income Tax Appeal No. - 419 of 2010, Income Tax Appeal No. - 421 of 2010, Income Tax Appeal No. - 423 of 2010, Income Tax Appeal No. - 424 of 2010 - - - Dated:- 26-5-2014 - Hon'ble Tarun Agarwala And Hon'ble Mrs. Ranjana Pandya,JJ. For the Appellant : A. N. Mahajan/Ssc For the Respondent : Siddharth Pathak ORDER We have heard Mr Shambhu Chopra, the learned counsel for the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under certain contingencies. For facility, the said provision is extracted hereunder: 12AA. (1) The Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) [or clause (aa) of sub-section (1)] of section 12A, shall- (a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf; and (b) after satisfying himself about the objects of the trust or institution and the genuineness of its activities, he- (i) shall pas an order in writing registering the trust or institution; (ii) shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no order under this sub-section shall be passed unless such trust or institution has been given a reasonable opportunity of being heard.] A perusal of the aforesaid indicates that where the Commissioner is satisfied that the activities of such trust was not genuine and was not being carried out with the objects of the trust, in which case the Commissioner would be justified in cancelling the registration of such trust. From the record, the objects of the trust is as under: 3a) To provide education to Christian youth in its institutions. The education shall and always include imparting of sound learning, building good moral character, spiritual truth and knowledge as God revealed in Jesus Christ and further to provide religious te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner was satisfied that the activities of such trust was not genuine or was not being carried out in accordance with the objects of the trust. The fact that some activities, which were not solely carried out for charitable purpose could not be a ground for cancelling the registration under Section 12-AA, though, such ground could be made available to the department to refuse exemption under Section 10 (23-C) of the Act. The learned counsel for the appellants has placed reliance upon the decision of the Uttarakhand High Court, (2009) 319 ITR 160 (Uttarakhand), Commissioner of Income Tax v. Queens' Educational Society as well as a decision of the Supreme Court in Municipal Corporation of Delhi vs. Children Book Trust, 1992 (3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax passed under Section 10(23C) (vi) of the Act while denying the exemption under the aforesaid sub-section. We are, therefore, of the considered opinion that the Tribunal had rightly restored the registration on the ground that in the Assessment Years 2004-05 and 2006-07 benefit of exemption/deduction under Section 11 of the Act was allowed to the respondent-assessee. We are in entire agreement with the decision in M/s Jeevan Deep Public School Society (supra). From a reading of the order of the Commissioner, we find that the registration was cancelled only on the ground that the Society did not solely exist for charitable purpose. There is no whisper that the assessee did not fulfill any of the conditions mentioned in Section 12-AA(3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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