9911796707
TMI Blog2018 (11) TMI 1056X X X X Extracts X X X X X X X X Extracts X X X X ..... for misuse of such foreign contribution/donation is brought on record by the Revenue authorities before cancelling such registration. The assessee clearly stated before the authority that since the remittances were received for the specific purpose of being made over to the said M/s. Malankara Catholic Diocese of Puttur, therefore they transferred the funds. The admission of the error on the part of the assessee- trust appears to have been, though uncalled for, made in right earnest and in a bona fide manner. No violation of any terms of the clause of the trust deed or memorandum of association is admitted or otherwise established on record - No ultra vires or illegal activity on the part of the respondent-trust - decided in favour of asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ires the objectives of the trust and therefore, the registration was required to be cancelled. The relevant portion of the order of the said authority is quoted below for ready reference : It is noticed that the diocese of Puttur is constituted by the memorandum of association registered on January 25, 2010 and was granted registration under section 12AA with effect from February 17, 2012 as a public religious trust. The transfer of funds took place on various dates immediately on receipt of the amount from donors based on a resolution passed at the special governing council body meeting held on April 2, 2010. Therefore on the date of transfer, the diocese was not registered under section 12AA. As observed earlier, the objectives of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ects of the assessee-trust are char itable in nature as it was accepted at the time of grant of registration under section 12AA. It is not the case of the Commissioner of Income-tax 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 order of the Commissioner is based on the consideration which is not relevant for the cancellation of registration under section 12AA(3) of the Act. The sole ground for initiating the proceedings for cancellation of registration as well as the consequential cancellation by the impugned order is the violation of FCRA as the assessee received foreign contribution which was transferred to another trust. It is not in dispute that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a 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 for the purpose of exemption under section 11 of the Act in the pre sent proceedings. Thus when there is no change in the activity of the assessee as well as the objects of the assessee then the mere transfer of the fund to the other trusts registration under section 12AA does not fall in the ambit of provisions of section 12AA(3) of the Act for cancellation of registration. In view of the above facts and circum stances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record by the Revenue authorities before cancelling such registration. The assessee clearly stated before the authority that since the remittances were received for the specific purpose of being made over to the said M/s. Malankara Catholic Diocese of Puttur, therefore they transferred the funds. The admission of the error on the part of the assessee- trust appears to have been, though uncalled for, made in right earnest and in a bona fide manner. But no violation of any terms of the clause of the trust deed or memorandum of association is admitted or otherwise established on record. The burden lies upon the Revenue to bring on record such material which proves that the charitable trust is engaged in activities which are contrary to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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