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TMI Blog2022 (2) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... by the trust is either not being spent for charitable purpose or such trust is earning profit. The provision requires that the activities of the trust or the institution must be genuine which would mean that they are in consonance with the object of the trust and are not mere camouflage of the proposed objects. Bearing the legal principle in mind, the tribunal once again examined the facts of the case and pointed out that the activities of the assessee have not been doubted in all these years. The activities were duly accepted to be charitable by the revenue and the revenue failed to bring anything on record to controvert the submission made by the assessee. In Sarladevi Sarabhai Trust [ 1988 (3) TMI 53 - GUJARAT HIGH COURT ] as point ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (the Act in brevity) challenging a common order dated 30th August, 2017 passed by the Income Tax Appellate Tribunal, Kolkata B Bench (the Tribunal in short) in ITA No.285/Kol/2016, ITA No.286/Kol/2016, ITA No.287/Kol/2016, ITA No.288/Kol/2016, ITA No.289/Kol/2016, ITA No.1156/Kol/2016, ITA No.1157/Kol/2016, ITA No.1158/Kol/2016, ITA No.1159/Kol/2016 and ITA No.1160/Kol/2016 for the assessment year 2006-07. The revenue has raised for the following substantial questions of law for consideration: (a) Whether the Tribunal has at all considered the activities of the assessee/respondent as in genuine for the purpose of application for Sub-Section 3 of Section 11AA ? (b) Whether on the facts and in the circumstances of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of donations and that the money donated by the assessee trust came back to it in the garb of donation from other trust registered under Section 12AA of the Act. Therefore, it was proposed that the activity of the assessee was neither genuine nor in accordance to the stated objective of the Trust. The assessee submitted its reply dated 16th November, 2015 stating that the show cause notice has proposed to cancel the registration on the basis of the finding made by the assessing officer in the assessment order for the assessment year 2006-07 and in the said year the assessing officer found that there was a case of a circuitous donation by one charitable trust to another charitable trust of same group and ultimately the donated amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, the assessee contended that there was no ground to withdraw the registration under Section 12A of the Act. Further it was pointed out that the assessment for the years 2007- 08 to 2014-15 had been completed accepting the assessee as a charitable trust and allowing the benefit of Section 11 of the Act. Thus, the assessee stated that there is no material or evidence before the CIT(E) to hold that the trust is not eligible for registration under Section 12AA of the Act. We find from the order passed by the CIT(E) dated 30th March, 2016 that none of the explanation offered by the assessee was considered and in the concluding paragraph the CIT(E) reiterated the allegations in the show cause notice in the form of an order and cancell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Income Tax vs. Sarladevi Sarabhai Trust reported in [1988] 172 ITR 698 . The tribunal also faulted the CIT(E) for having cancelled the registration with retrospective effect as being without jurisdiction. Thereafter, the tribunal elaborately examined the facts and pointed out that at the inception, the CIT(E) was satisfied with the genuineness of the activities and granted registration to the assessee and before the tribunal the activities of the assessee have not been doubted except by stating that corpus donation was given by the assessee to the other trust that too during only one assessment year 2006- 07. It is settled legal principle that Section 12AA of the Act lays down procedure for registration and does not state that the C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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