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TMI Blog2019 (5) TMI 1202X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by confirming the relief granted to the assessee. As far as unaccounted payment of ₹ 8 lakhs made to M/s R.K. Engineering Works is concerned, the same had been deleted and no appeal was filed against the deletion of the addition. The issue regarding unexplained cash transfer entry was also decided in favour of the assessee. Further, the assessee had been granted registration again on 30.11.2008 which was made effective from the assessment year 2008-09 finding the activities of the assessee as genuine and the objective being charitable. The Tribunal [ 2012 (7) TMI 398 - ITAT DELHI] while allowing the appeal held that the addition was based on the cancellation of the assessee trust u/s 12AA and denying the exemption u/s 11 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llation of registration ordered by Commissioner is not sustainable when the addition made to returned income during any assessment year has been deleted in appeal? ( ii) Whether the Tribunal was justified in law in observing that when the additions made to returned income of trust has been deleted in the quantum of appeal, nothing survives which can be made basis of denial of registration, while the provisions of Section 12AA(3) empower cancellation of registration based on the analysis of the activities of the trust and not on sustainability of income? ( iii) Whether any activity(ies) on the basis of which an addition to the returned income was made which could not be sustai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Income Tax (C), Ludhiana to make the order under Section 12AA(3) of the Act effective from 1.10.2004. The assessee filed an appeal before the Tribunal against the cancellation of registration who vide order dated 15.2.2010 set aside the said order and remanded the matter back for fresh consideration. In pursuance thereto, the CIT(C), Ludhiana vide order dated 23.12.2010 (Annexure A-1) declined to restore back the registration granted to the assessee under Section 12AA of the Act and affirmed the order of cancellation under Section 12AA(3) dated 30.1.2008 effective from 1.10.2004. Feeling aggrieved by the order, Annexure A-1, the assessee filed an appeal before the Tribunal. The Tribunal vide order dated 25.5.2012 (Annexure A-2) finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee as genuine and the objective being charitable. The relevant findings recorded by the Tribunal read thus:- We have heard both the sides in detail. The registration of the assessee which was granted on 27.3.2001 was cancelled by the order dated 30.01.2008. This cancellation was based on the three additions made to the income of the assessee for Assessment Year 2005-06 and 2006-07. The first addition was in respect of unaccounted cash found and seized from the residence of trustees of assessee. In the quantum appeal, we have dismissed the revenue's appeal by confirming the relief granted to assessee, therefore, this ground for cancellation no more survive before us. Secondly, the unaccounted pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Further, the Tribunal while allowing the appeal bearing ITA/972/Del/2011 of the assessee against the order of the CIT(C), Ludhiana for denying the approval of exemption under Section 80G of the Act against which the revenue has filed ITA-277-2012 before this Court, had observed as under:- We have heard both the sides on the issue, The CIT, Central, Ludhiana declined the approval of the assessee for exemption u/s 80G on the basis of the cancellation of registration of the assessee trust u/s 12AA. Since we have allowed the assessee's appeal against the cancellation of registration, therefore, we allow the assessee's appeal on this ground also and set aside the order of the CIT and direct to grant th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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