9911796707
TMI Blog2019 (10) TMI 1539X X X X Extracts X X X X X X X X Extracts X X X X ..... he trust are not genuine or are not being carried out in accordance with the objects of the Trust. In this situation, the CIT (E) has very well empowered to pass order under section 12AA(3) of the Act cancelling the registration. We reached to a logical conclusion that the CIT(E) was right in cancelling the registration granted to the assessee on 7.5.2012 as the Pujari of the trust changed the original trust deed granted in 1948 and subsequent trust deed in 1987 against the wishes of the founder. The reasons stated by the appellant for sale of land of the trust for development is also not genuine, bonafide and thus, it is crystal clear that the activities of the trust were not genuine as it has violated the objects of the trust as well as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iolation of law or objects of the trust in adding clause authorising sale of land of the trust and, there was no change in the objects of the trust and no violation of either in income tax act or any other law of the country in executing a new trust deed in the year 2005. Thus, the CIT(Exemptions) was not justified in cancelling the registration of the trust. 3. Ld A.R. drew our attention towards para 19, 20 & 22 of the judgement of Hon'ble Supreme Court dated 1.5.2019 in Civil Appeal No.4003 of 2019 filed by the present appellant-assessee and submitted that the Hon'ble Supreme Court has categorically held that the Hon'ble High Court of Jharkhand has completely misdirected itself in directing the Central Bureau of Investigation to take ove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Pujari and Trustee of the Trust for criminal conspiracy cheating and criminal misconduct. Ld CIT DR further pointed out that from the analysis of the entire facts and circumstances of the case, it is crystal clear that the objects of the trust are not genuine as it has violated the objects of the trust by changing original trust deed twice one in the year 1987 and secondly in the year 2005, which is clearly against wishes of the founder trustee. Therefore, the ld CIT(E) was right in cancelling the registration. 6. On careful consideration of the rival submissions, first of all, we respectfully note that from the judgement of Hon'ble Supreme Court dated 1.5.2019 (supra) it is ample clear that the Hon'ble Supreme Court has struck down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noted by the CIT(E) while cancelling the registration. Further, ld D.R. drew our attention towards reply of the appellant vide dated 26.3.2018 to the show cause notice issued by the CIT(E) dated 18.12.2017. Ld A.R. submitted that since the land graffers who were capturing the land day by day. Therefore, to save the interest of trust, the land was sold for the purpose of development and, therefore, the act of sale of land for development cannot be a basis for cancellation of registration u/s.12AA(3) of the Act. 10. It is also observed that we are in agreement with the contention of ld CIT DR that there is no complaint by the Pujari and founder of the trust regarding garbing of land. Therefore, the cause shown by the appellant for justifyin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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