As per sec 12AA (3) if Commissioner is satisfied that activities of trust are not genuine can pass order for cancellation of registration only after giving reasonable opportunit

Last updated: 10 March 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Before we part with this order, it may be mentioned that according to the provisions of sub-section (3) to Section 12AA, even after grant of registration, if the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, he is empowered to pass an order in writing canceling the registration of such trust or institution after giving the assessee a reasonable opportunity of being heard. Therefore, even after the grant of registration of this Trust is found to be not carrying out its activity in accordance with the objects of the trust, and making violation of any of the provisions of trust deed or Act, then, ld. CIT can use his powers given to him u/s 12AA (3) in accordance with law. With these observations, we allow the appeal filed by the assessee in the manner aforesaid

Citation :
Shanti Devi Educational Trust,315-L, Model Town, Rewari.(Appellant) Vs. CIT,Aayakar Bhawan,Opp. Mansarover Park, Rohtak. (Respondent)