9911796707
TMI Blog2016 (10) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds : "1. The order of the CIT, Davangere is opposed to law, facts, weight of evidences, probabilities, facts and circumstances of the case. 2. The CIT erred in withdrawing the registration to the appellant u/s.12AA of the Income Tax Act. 3. The CIT erred in ignoring the objects of the Society being charitable in nature. 4. The Commissioner has erred in unduly emphasizing on the transfer of foreign contributions to Malankara Catholic Diocese of Puttur, without appreciating that it was the project of the appellant itself. 5. The CIT erred in misconstruing the apology of the appellant as adversarial and withdrawing the registration. 6. For these and other grounds that may be urged at the time ofhearing, the appellant prays t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the proceedings. It was further explained that the Secretary of the trust could not go to Bangalore and pursue the matter as he was appointed as Chief Superintendent of Mangalore University Examinations in the month of Oct./Nov., 2014. Supporting document has been filed along with the Affidavit. Thus the assessee has pleaded that the delay in filing the appeal is neither intentional nor deliberate due to unavoidable circumstances beyond the control of the assessee. 6. On the other hand, the learned Departmental Representative has vehemently objected to the condonation of delay. 7. Having considered the rival submissions and material on record, we find that the assessee has explained that there was a sufficient cause of delay in filing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transferred Rs. 1,23,00,323 to Malankara Catholic Diocese of Puttur on various dates. The Assessing Officer observed that this amount was a foreign contribution and was taken directly to capital receipt on the receipt side of payment and account. Accordingly, the Assessing Officer sent a proposal for withdrawal of registration granted under Section 12AA of the Act. The CIT accordingly issued a show cause notice dt.13.11.2013 calling for objection to the proposed withdrawal of Registration under Section 12AA. In response to the notices issued by the CIT, the assessee submitted that the foreign donation was sent to foreign currency account by the assessee specifically for the purpose of newly formed Malankara Catholic Diocese of Puttur and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that the said trust namely Malankara Catholic Diocese of Puttur has been granted Registration under Section 12AA of the Act by the Department and therefore the objects of the said trust are considered as charitable in nature. The assessee is duly authorized for foreign contribution as per FCRA. Therefore receiving the foreign contribution is not prohibited by FCRA as it prohibit only unauthorized institution to accept foreign contribution. Thus the learned Authorised Representative has submitted that there is no violation of FCRA. Once the amount given to the other trust which has been granted Registration under Section 12AA, the same cannot be considered as not applied to the objectives of the trust. 10. On the other hand, the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isfied 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, he shall pass an order in writing cancelling the registration of such trust or institution: Provided that no order under this sub-section shall be passed unless such trust or institution has been given a reasonable opportunity of being heard." There is no dispute that the objects of the assessee trust are charitable in nature as it was accepted at the time of grant of registration under Section 12AA. It is not the case of the CIT or of the revenue that there is any change in the nature of activity of the assessee or in the objects of the assessee. The impugned o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be a subject matter of application of money for the purpose of objects of the trust which falls under Section 11 of the Act. Therefore the issue of application of income is a subject matter of allowance of exemption under Section 11 in the assessment and cannot be a ground for cancellation of registration. It is pertinent to note that the Commissioner has accepted this fact that the fund given to other trust namely Malankara Catholic Diocese of Puttur was also granted registration under Section 12AA of the Act and therefore the objects of the said trust was also considered and accepted as charitable in nature. Since this is a subject matter of assessment therefore we do not express any opinion or view on the issue of application of income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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