TMI Blog2018 (10) TMI 870X X X X Extracts X X X X X X X X Extracts X X X X ..... directed to restore its registration within three weeks of communication of this order.However, this will not bar any action against the appellant in respect of any future activities. - decided in favour of assessee. - ITA No. 116 of 2018 - - - Dated:- 9-10-2018 - MR I. P. MUKERJI AND Ms. AMRITA SINHA, JJ. For The Appellant : Mr. N. K. Poddar, Sr. Advocate, Mr. V. Tibrewal, Advocate And Mr. Avra Majumdar, Advocate For The Respondent : Mrs. Smita Das De, Advocate ORDER The Court : Two appeals of the assessee were dismissed by the Income Tax Appellate Tribunal (hereinafter referred to as the tribunal ) on 13th September 2017. The assessee is in appeal before us against that order under section 260A of the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y in the garb of a trust with benevolent purposes. That would make the activity not genuine. Or the trust could be involved in any unlawful activity. The second part of the said sub-section could imply that the trust was being utilised for some other purpose than one for which it was created. For example, a religious and charitable trust is found to be operating for the benefit of a particular person. As is established by evidence, the trust in this case had several donors. Mr. Poddar argued, and in our opinion rightly, that when the trust received donations, it was under no obligation to verify the source of the fund of the donor or whether such fund was acquired by performance of any unlawful activity. At least the appellant trust d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so as to warrant cancellation of the registration of the appellant trust under section 12AA(3) of the Act. The respondent also has not been able to prove any complicity of the appellant trust in any illegal, immoral or irregular activity of the donors. In that view of the matter, we answer the question (i) in the order dated 4th July 2018 in the negative and in favour of the assessee. We have not found it necessary to go into the issue raised in question (ii). The order of cancellation of the registration of the trust is set side. The respondent is directed to restore its registration within three weeks of communication of this order. However, this will not bar any action against the appellant in respect of any future activities. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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