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TMI Blog2024 (10) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... l, the assessee has raised following grounds: - "1. That the learned CIT(Exemptions) was not justified on facts and in law in cancelling the registration of the assessee trust as granted by CIT, Jodhpur, under sec. 12A(a) of the Income-tax Act, 1961. 2. That the registration of the trust was cancelled all of sudden after more than 28 year without any basis and justification. The same is not justified both on facts and in law.' 3. That the learned CIT(Exemptions) has not provided the copies of the Field Officer Report and other documents relying on which he cancelled the registration. The same is not justified both on facts and in law. 4. That the learned CIT(Exemptions) has not given adequate opportunity to the assessee to explain h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registration granted u/s 12AA if he is satisfied that the: (a) activities of the trust or institution are not genuine. (b) are not being carried out in accordance with the objects of the trust or Institution." 1.4 The learned CIT (Exemption) was of the view that the activities of the assessee trust are not being carried out as per the objects of the Trust. He finally concluded in para 15.7 that: "15.7 In absence of any evidences submitted by the applicant, it cannot be held that the hospital activities are being run by the applicant. The field officer report, discussed in the earlier part of the order, clearly indicate that the premises is in very bad condition and not in use for last many years. From the above facts, it can be see ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e trust will not be entitled for benefit u/s 11 & 12." 1.7 The learned CIT (Exemption) concluded in para 17 that. "17. Based on above discussions it can be concluded that the activities of the trust are not as per the objects of the trust and, therefore, are not genuine and also the property and income of the trust has been used for the personal benefit of the trustees, therefore, the provisions of Section 12AA(3) & 12AA(4) are attracted. In view of these provisions, registration granted vide Niya/J-3/12(A)87-88/1045, dated 13.01.1988 by CIT Jodhpur is cancelled." Order of CIT (Exemption) not within the provisions of ss. 12AA(3) and 12AA (4). 1.8 The order of learned CIT (Exemption) does not fall within the four concerns of the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ashed. 1.14 The assessee therefore very humbly prays that the order of the CIT (Exemption) cancelling the registration of the assessee trust may please be quested." Concerning the above issue, the ld. AR of the assessee has filed the following documents to dispel the doubt raised in the mind of the ld. CIT(E). S.No. particulars Paper book page No. 1. Appellant's submission to the Hon'ble members, ITAT, Jodhpur bench, Jodhpur. S-1 S-6 Enclosures 2. Copy of Form No. 36 1 2 3. Copy of Order of CIT(Exemption), jaipur dated 03.10.2016. 3 34 4. Copy of Trust deed 25 31 5. Copy of 12A(a) Registration certificate 32 -- 6. Copy of order of Asst. Commissioner, Devasthan Vibhag, Jodhpur dated 11.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubt the activities of the trust, the receipt of income from rent is as per object of the trust and the benefit that the trustees are getting cannot be a sole reason to reject the registration of the trust. Thus, on both the issues we get strength from the judgment of the apex court in the case of Ananda Social and Education Trust (Supra) where the court held that : "Section 12AA undoubtedly requires the Commissioner to satisfy himself about the objects of the trust or institution and genuineness of its activities and grant a registration only if he is so satisfied. The said section requires the Commissioner to be so satisfied in order to ensure that the object of the trust and its activities are charitable since the consequence of such re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... say, a Commissioner is bound to consider whether the objects of the Trust are genuinely charitable in nature and whether the activities which the Trust proposed to carry on are genuine in the sense that they are in line with the objects of the Trust. In contrast, the position would be different where the Commissioner proposes to cancel the registration of a Trust under sub-section (3) of section 12AA of the Act. There the Commissioner would be bound to record the finding that an activity or activities actually carried on by the Trust are not genuine being not in accordance with the objects of the Trust. Similarly, the situation would be different where the trust has before applying for registration found to have undertaken activities contra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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