CIT Vs Jagannath Gupta Family Trust (Supreme Court of India)
In case of order passed by High Court on cancellation of Trust Registration in which high court held that one Bogus Donation cannot prove that activities of Trust are not genuine but high court has ignored the fact that Trust has pleaded that proceedings for cancellation were initiated only on the ex-parte statement of the representative of the donor, without giving any opportunity to the assessee. High Court has allowed the Writ Petition mainly on one ground, namely, that one bogus donation would not establish that the activities of the trust are not genuine. Supreme court is of the view that such a reason assigned by the High Court is erroneous and runs contrary to the plain language of Section 12AA(3) of the Act.
FACTS –
Assessee is a registered trust u/s 12AA and also approved u/s 80G(5)(vi). Trust was created with an objective of public and charitable purpose like medical relief, education and any other causes of public utility.
During the survey proceeding in the premises of Human Genetics and Population Health, donation of INR 37 Lakhs to the assessee, vide two tranches, were noted and alleged to be bogus. The said donation was mentioned as received in cash by the assessee and it was alleged that the said donation was bogus.
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