Last Hour Ministry Vs CIT (Exemption) (ITAT Cochin)
Assessment issues cannot justify 12A Registration Cancellation-12A cancellation requires solid proof, not mere allegations; ITAT Cochin
In a significant ruling, Cochin ITAT allowed the appeals of four charitable trusts -Last Hour Ministry, Love India Ministries, Ayana Charitable Trust, & Believers Eastern Church – against the orders of CIT(E) cancelling their registrations u/s 12A.
The trusts, engaged in relief to the poor, education, housing, & community development, had faced search & seizure on 05.11.2020. Soon after, CIT(E) issued SCN & within a short span, cancelled registrations citing multiple allegations — interdependence of trusts, incorrect returns, misuse of funds, inflation of expenses, FCRA violations, & misuse of properties.
Assessee trust was registered u/s 12A &formed with the object of rendering relief to the poor in the form of housing project, education to poor children, community development etc, filing its returns of income after claiming exemption u/s 11 which was allowed by AO. Search & seizure operations u/s 132 were conducted in the premises of appellant-society. When the search & seizure proceedings were on, CIT(E) had called upon assessee to explain as to why registration u/s 12A should not be cancelled. Assessee-trust submitted that information called for could not be furnished as the copies of the seized material could only be furnished after the search & seizure proceedings were completed. CIT(E) had proceeded with cancellation of registration granted earlier vide order passed u/s 12AA(3) .
