Trust registration once granted can’t be cancelled based on same set of provisions that were examined earlier: HC
- Blog|News|Income Tax|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 15 November, 2022
Latest from Taxmann
Case Details: Sri. Ramjanki Tapovan Mandir v. CIT (Exemptions) - [2022] 144 taxmann.com 183 (Jharkhand)
Judiciary and Counsel Details
-
- Aparesh Kumar Singh & Deepak Roshan, JJ.
- Sumeet Gadodia, Mrs Shilpi Sandil Gadodia & Aakansha Mittal, Advs. for the Appellant.
- Ratnesh Nandan Sahay, Adv. for the Respondent.
Facts of the Case
“Whether the registration once granted under Section 12AA could be cancelled based on the same set of provisions of the Trust which were examined earlier?”
High Court Held
The High Court held that Section 12AA(3) provides the circumstances under which registration granted under Section 12A to a Trust or Institution can be cancelled. A bare perusal of the said section reveals that Section 12AA(3) contemplates the existence of two contingencies for cancellation of the registration already granted, namely:
a) If the activities of the Trust are not genuine; or
b) are not being carried out in accordance with the objects of the trust.
In the assessee’s case, the registration was granted to the assessee-trust based on the Trust Deed dated 20-09-2005. Based on the same trust deed, an exemption was granted to the trust. However, a notice was issued and later, CIT(exemption) passed an order cancelling registration granted to the assessee. Later, the Tribunal also upheld the order of CIT(E).
The High Court held the CIT(Exemptions) traveled beyond the scope of inquiry as contemplated under section 12AA(3) for declaring that the activities of the Trust are not genuine. It CIT(E) proceeded to cancel the registration by recording that the Trust Deed was contrary to the wishes of the founder of the Trust and the earlier instruments of the Trust.
Once registration has been granted to a trust under section 12AA after satisfying the genuineness of the activities of the Trust, the same cannot be cancelled based on the same set of provisions of the Trust which were examined earlier.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
