Case Law Details
Gian Sagar Educational & Charitable Trust Vs ACIT (ITAT Delhi)
Conclusion: Order of the PCIT cancelling the registration since inception, u/s 12AA(3) was legally not valid as no material was being referred by PCIT and its applicability to any of the provisions of Section 2(15) and/or Section 12AA(3) while revoking the registration.
Held: Assessee-charitable trust was running a medical college i.e. educational institutions. Besides the educational institutions, it was also running a hospital at Banur, Punjab. Since, the objects of assessee-trust being charitable within the meaning of section 2(15) and hence assessee-trust was granted registration u/s 12AA by Commissioner of Income Tax. Apart from the registration, assessee was also granted approval u/s 80G by CIT. Since inception, assessee trust was carrying out its charitable activities in accordance with the objects as provided in the trust deed and the receipts of assessee trust had been applied towards its charitable objects. After the establishment of assessee-trust, it was regularly filing its return of total income by claiming exemption u/s 11/12. It was held that PCIT, did not have record of activities which were not in accordance with the objects of the trust. The entire order of PCIT was based on the appraisal report of DDIT(Inv.) only. No material was being referred by PCIT and its applicability to any of the provisions of Section 2(15) and/or Section 12AA(3) while revoking the registration. PCIT could cancel the registration if the conditions mentioned therein were not satisfied or the activities of the trust were not genuine or the activities were not carried out in accordance with the objects of the trust. Hence, keeping in view the fact that MCI had granted due permission for the academic session 2010-11, keeping in view the fact of non-sanction of prosecution of Sh. Ketan Desai, keeping in view the order of the Hon’ble High Court of Delhi, dropping the proceedings till sanction was received, keeping in view the submission of the revenue that no prosecution was pending against the assessee as on now, keeping in view the aims & objects of the trust were in consonance with the provisions of Section 2(15), keeping in view that there had been no violation of clause (ii) para 4 of the trust deed as alleged by PCIT, it was held that the order of the PCIT cancelling the registration since inception, u/s 12AA(3) was legally not valid.
FULL TEXT OF THE ITAT JUDGEMENT
The present appeal has been filed by the assessee against the order of the ld. PCIT, New Delhi dated 27.10.2017.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
