TMI Blog2009 (8) TMI 1150X X X X Extracts X X X X X X X X Extracts X X X X ..... does not mean that trust is not a public trust. This proposition finds support from the decision of Hon'ble Supreme Court in the case of Deoki Nandan v. Murlidhar Ors.[ 1956 (10) TMI 35 - SUPREME COURT] .As a matter of fact the trust is genuine and because of this, the ld Director of IT (Exemption) granted the exemption u/s 12AA. There is no finding or allegation in the impugned order that activities carried out by the trust are not in accordance with the objects of the trust or institution. Merely because the assessee has not carried out any activities, that does not mean that the trust has totally stopped the activity forever. In our considered opinion, the ld Director of IT (Exemption) has not made out a case justifying cancell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h, 2006. 3. Having heard both sides, we have carefully gone through the impugned orders of the authorities below. Sub-section (3) of section 12AA of the Act empowers the CIT to cancel the registration of a trust or institution granted under clause (b) of sub-section (1) of section 12AA when subsequent to grant of registration the CIT is satisfied that activities of trust or institution are not genuine or are not being carried out in accordance with objects of the trust or institution. We find that the registration granted under section 12AA on 7th July, 2005 has been withdrawn by the Director of IT (Exemption) mainly on two counts and they are-(1) On tendering resignation of one of trustees i.e., Yogesh Hiralal Oza, with the remaining tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment years 2005-06 and 2006-07 along with audit report for the year ending 31st March, 2005 and 31st March, 2006. It is pointed out that from the perusal of the same, no activities are carried out by the trust. There is no violation of any of the provisions contained in the Act. Merely, all the trustees are family members, it does not mean that trust is not a public trust. This proposition finds support from the decision of Hon'ble Supreme Court in the case of Deoki Nandan v. Murlidhar Ors. AIR 1957 SC 133 (copy placed on record). As a matter of fact the trust is genuine and because of this, the learned Director of IT (Exemption) granted the exemption under section 12AA. There is no finding or allegation in the impugned order t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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