TMI Blog2019 (1) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... rocured the material to carry out its construction activities unhindered. It was noticed that the Ready Mix concrete was supplied with concessional rate. Tribunal has committed any error. The decision of the Kerala High Court in the case of Annadan Trust (2018 (8) TMI 518 - KERALA HIGH COURT) was rendered in somewhat different facts. The case in which the assessee trust was engaged in implementing welfare schemes of various State Governments such as supplying food to poor school children in the disbursed areas. The registration was cancelled by the Commissioner on the ground that the assessee failed to substantiate that the same was done on charitable basis. - Decided against revenue. - INCOME TAX APPEAL NO. 882 OF 2016 with INCOME TAX ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nner in which it was done and that too without permission from the Charity Commissioner. He noted that the agreement under which the land was transferred was also not registered. Inter alia on such grounds the Commissioner passed the order of cancellation of registration. 3. The Tribunal, in an appeal by the assessee, reversed the decision of the Commissioner primarily holding that if there is any breach of the provisions of Section 13(1), the Assessing Officer can examine its effect at the time of passing of the Assessment Order. The Tribunal was of the opinion that for cancellation of registration of the trust, the inquiry before the Commissioner would be, whether the trust activities are genuine or not, and the activities are being ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Director of Income Tax Vs N H Kapadia Education Trust dated 28/09-01/10/2018 in R/Tax Appeal No. 356 of 2012 and that of Division Bench of this Court in the case of Director of Income Tax Vs Khar Gymkhana, (2016) 385 ITR 162 (Bom). 7. Sub-section 1 of Section 13 of the Act provides inter alia that nothing contained in Section 11 or 12 shall operate so as to exclude from the total income of the previous year of the person in respect thereof. The Division Bench of Gujrat High Court in case of N H Kapadia Education Trust (supra) had occasion to examine the effect of alleged breach of objects on the part of trust while carrying out its objects. The Court held and observed that in terms of subsection 3 of Section 12AA of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rust not being genuine or not being carried out in accordance with the objects of the Trust. The Tribunal was thus perfectly justified in coming to such a conclusion. Our view that we expressed gets force from the decision of Uttranchal High Court in case of Welham Boy's School, Society Vs Central Board of Direct Taxes and anr reported in 285 ITR 74. 8. Similarly, Division Bench of this Court in the case of Khar Gymkhana (supra) had occasion to examine the question of continuity of registration of the trust upon alleged breach of Section 2(16) of the Act. The Court held and observed as under- 10. We find that the Circular No. 21 of 2016 when read as a whole, specifically lists out in paragraphs 4 and 5 reproduced herein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2016 directs the Officer of the Revenue not to cancel Registration only because the receipts on account of business are in excess of the limits in the proviso to section 2(15) of the Act would also apply in the present case. The impugned order has held that cancellation of a registration under section 12AA(3) of the Act, can only take place in case where the activities of the trust or institution are not genuine and/or not carried on in accordance with its objects. The aforesaid Circular No. 21 of 2016 is in line of the finding of the Tribunal in the impugned order. The submission on behalf of the Revenue that the trust is not genuine because it is hit by proviso to section 2(15) of the Act, is in fact, negatived by Circular No. 21 of 2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ka Buildcon Ltd. under which the assessee handed over the possession of land to the said concern for putting up a plant for manufacturing of Ready Mix Concrete. The said M/s Ashoka Buildcon Ltd. would supply Ready Mix Concrete required by the assessee for the construction of its school building on priority and at concessional rates. It was found that at the relevant time in the nearby area no such plant was there from which the assessee could have procured the material to carry out its construction activities unhindered. It was noticed that the Ready Mix concrete was supplied with concessional rate. 10. Thus on law as well as on facts, we do not think that the Tribunal has committed any error. The decision of the Kerala High Court in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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