TMI Blog2021 (11) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... ich according to the assessee was in consonance with Clause 4(A) of the Deed of Trust. At the time when the registration was granted at the first instance by the then Commissioner on 14th December, 1995, the clauses and covenants as contained in the Deed of Trust were examined and the activities of the trust were found to be genuine and after recording satisfaction, registration has been granted. Therefore, such an issue could not have given rise to a cause of action for cancellation of the registration. The Tribunal had followed the decision of Tamil Nadu Cricket Association [ 2013 (12) TMI 833 - MADRAS HIGH COURT] to hold that the issues relating to how the funds of the Trust were employed is not germane for considering the question a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectness of the order dated 29th November 2017 passed by the Income Tax Appellate Tribunal, Kolkata A Bench in I.T.A. No. 767/Kol/2017. The revenue has raised the following substantial questions of law for consideration :- a) Whether on the facts and in the circumstances of the case and in law, the Learned Income Tax Appellate Tribunal is not correct in opining that the cancellation of the registration of the assessee by the Commissioner of Income Tax (Exemptions) by exercising jurisdiction under sub-section 3 of Section 12AA of the Income Tax Act, was not maintainable thereby wrongly set aside the order of the Commissioner of Income Tax (Exemptions) ? b) Whether on the facts and in the circumstances of the case and in law, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Direct Taxes (CBDT). In this regard, the Commissioner referred to proviso to Section 11(1)(c) of the Act. The assessee filed their written submissions on 25th April, 2016, inter alia, contending that the donations were made to a school in Nepal in terms of the Clause 4(A) of the Trust Deed which does not prohibit the Assessee Trust from making such donations and Trust Deed is a registered Deed under Section 12A of the Act. Further certain factual details were also given to justify the stand that Section 11 of the Act shall not apply to the assessee s Trust. The copies of the Trust Deed, the receipts for the donation paid, balance sheet and income and expenditure account for the relevant years and the Trust Deed of the institution in Nepal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee was in consonance with Clause 4(A) of the Deed of Trust. Thus it goes without saying that at the time when the registration was granted at the first instance by the then Commissioner on 14th December, 1995, the clauses and covenants as contained in the Deed of Trust were examined and the activities of the trust were found to be genuine and after recording satisfaction, registration has been granted. Therefore, such an issue could not have given rise to a cause of action for cancellation of the registration. The Tribunal had followed the decision of the High Court of Madras in the case of Tamil Nadu Cricket Association, 368 ITR 633 (Madras) to hold that the issues relating to how the funds of the Trust were employed is not germane for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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