9911796707
TMI Blog2015 (9) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee vide certificate dated 3.11.1992 by the CIT, Karnataka-II I, Bangalore. The recognition granted under section 80 G was valid from 19.10.1992 to 31.3.1994 and renewal of recognition under section 80G was granted vide certificate dated 1.3.2005. The renewal of recognition was valid from 15.6.2004 to 31.3.2006. Registration under section 1 2A and recognition under section 80G were withdrawn with effect from 1.4.1996. The reasons for such withdrawal are: i) The institution has not maintained proper books of account. ii) Donations received have been kept outside the books of account. iii) The assessee has accounted only the fees fixed by the University. The assessee is collecting fees over and above the fees fixed by the University an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued to the assessee calling for reasons as to why registration granted under section 12A and recognition granted under section 80G of the Act should not be withdrawn. A detailed reply was filed. Not being satisfied with the reply, the registration granted under section 1 2A and the recognition under section 80G of the Act was withdrawn. Aggrieved by the said order, the assessee preferred an appeal before the Tribunal. The Tribunal held that at the time of considering cancellation of registration of Trust already granted, what is mainly to be seen is, whether the activities of the Trust or Institution are not genuine or are not being carried out in accordance with the objects of the Trust or Institution. There is nothing on record to show th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and contrary to the provisions of the Income Tax Act. Therefore, he submits that a case for cancellation is made out and the Tribunal erroneously set-aside the CIT order. 6. Per contra, learned counsel appearing for the assessee submitted that when once the genuineness of the Trust is not disputed and when the object of the Trust namely imparting education has been carried on uninterruptedly, a case for cancellation of the Trust is not made out. If there are violations, such as not accounting the money received which was found in the possession of the Trustees, bogus entries in the accounts and payments made to the members of the family which are recorded in code numbers, the benefit under section 11 of the Income Tax Act need not be exten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtunity of being heard.]" As is clear from the circular No.5 of 2005 dated 15.7. 2005 issued by the Central Board of Direct Taxes, the aforesaid section was amended so as to specifically provide that if the Commissioner of Income Tax is satisfied that the activities of any Trust or Institution are not genuine or are not being carried out in accordance with the objects of the Trust or Institution, he shall, after giving reasonable opportunity of being heard to the concerned Trust or Institution, pass an order in writing cancelling the registration granted under the said section. Therefore, in view of the aforesaid express provision, registration granted to a Trust could be cancelled under two circumstances namely, (1) When the activities of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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