Law:

Section:

Section 12AA of the Income-tax Act, 1961 - Charitable or religious trust - Registration procedure - Assessment years 2008-09 to 2010-11 - Whether once Commissioner grants registration to a trust under section 12AA(1)(b)(ii) after satisfying himself about activities of trust, such a registration cannot be cancelled by following very same provision of section 12AA(1)(b) to go into genuineness of activities of trust - Held, yes - Whether, however, Commissioner is empowered to revoke certificate in terms of section 12AA(3) in event Commissioner is satisfied subsequently, i.e., after registration that activities of such trust or institution are not genuine or not being carried out in accordance with objects of trust or institution as the case may be - Held, yes - Assessee-trust was formed with object of publishing and selling Sarvodaya Literature as also Gandhian and Sarvodaya ideologies - Commissioner granted registration to assessee-trust under section 12A - Subsequently, Commissioner passed an order under section 12AA(3) cancelling registration on ground that assessee was engaged in purchase and sale of books which was a commercial activity - On appeal, Tribunal set aside order of Commissioner holding that none of conditions under section 12AA(3) were violated and therefore, satisfaction which was arrived at by Commissioner was not justified - Whether on facts and, having regard to aforesaid legal position, impugned order passed by Tribunal did not require any interference - Held, yes [In favour of assessee] FACTS The assessee was a society and it was granted registration by the Commissioner vide his order under section 12A(a). The object for which the trust was registered was to effect publication and sale of Sarvodaya Literature as also the Gandhian and Sarvodaya ideologies. When the returns filed for the assessment years 2008-09 to 2010-11 were scrutinized, it was found that the society was engaged in purchase and sale of books. On the ground that the above activities of the trust could not be considered to be charitable activities, a show-cause notice was issued by the Commissioner under section 12AA(3). Thereafter, the Commissioner revoked the registration…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492