Durga Indiramani Foundation, Chandigarh V. CIT I, Chandigarh

ITA 100/CHANDI/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68372 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-07-2013
• Assessment Year: misc
• Appeal Filed On: 06-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMARVEER SINGH
• Assessee Lawyers: B M KHANNA
• Keywords: Charitable institution; Cancellation of registration
• Section: 133A; 80G; 12A; 12AA; 6; 63; 132; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES BCHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 99/CHD/2013 ( ORDER U/S 12AA(3) M/S SATKRIT SERVICE TRUST, VS THE COMMIS SIONER OF INCOME TAX-I, SCO 88-89, SECTOR 8-C, CHANDIGARH. CHANDIGARH. PAN NO. AAFTS-8954C & ITA NO. 100/CHD/2 013 (ORDER U/S 12AA(3) DURGA INDIRAMANI FOUNDATION, VS THE COMMISSIONE R OF INCOME TAX-I, SCO 88-89, SECTOR 8-C, CHANDIGARH. CHANDIGARH. PAN NO. AAATD-8826B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI TEJ MOHAN SINGH & SHRI B.M.KHANNA RESPONDENT BY : SHRI AMARVEER SINGH DATE OF HEARING : 17.07.2013 DATE OF PRONOUNCEMENT : 02.08.2013 ORDER PER SUSHMA CHOWLA, JM THESE TWO APPEALS BY DIFFERENT ASSESSEES ARE FILED AGAINST SEPARATE ORDERS OF COMMISSIONER OF INCOME-TAX-I CHANDIGARH, BOTH DATED 18.01.2013 AGAINST THE ORDER PASSED UNDER SECTION 1 2AA(3) OF THE INCOME- TAX ACT, 1961. 2. IDENTICAL GROUNDS OF APPEAL HAVE BEEN RAISED IN BOTH THE APPEALS AND THE GROUNDS OF APPEAL IN ITA NO. 99/CHD/2013 RE AD AS UNDER : 1 . THAT THE LEARNED CIT (A) HAS ERRED IN LAW AND ON FACTS IN CANCELING THE REGISTRATION -U/S 12 AA(3)OF THE INCO ME TAX ACT 1961. 2 2. THAT THE LEANED CIT HAS ERRED IN RELYING ON THE REPORT OF LEARNED ASSESSING AUTHORITY WITHOUT VERIFYING THE F ACTS. IT IS NOT ONLY BIASED AND MALICIOUS BEING CONTRARY TO THE REPORT SUBMITTED FOR THE REGISTRATION OF THE TRUST VIDE OR DER DATED 17/19-07- 2007. 3. THE LEARNED CIT HAS ERRED IN CONCLUDING T HAT DONATIONS GIVEN FOR CHARITABLE ACTIVITIES . AS PER THE OBJECTS OF THE T RUST ARE NOT GENUINE AND THEREBY CANCELING THE REGISTRATION. PROOF ATTACHED BY WAY OF RECEIPTS DULY SHOW THE PROPER APPLICATION OF DONATION. 3. WE PROCEED TO DISPOSE OF THE PRESENT APPEAL BY R EFERRING TO THE FACTS IN ITA NO. 99/CHD/2013. THE ISSUE RAISED IN THE PR ESENT APPEAL IS AGAINST THE WITHDRAWAL OF REGISTRATION BY THE COMMISSIONER OF INCOME-TAX UNDER SECTION 12AA(3) OF THE ACT. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE TRUST W AS RUN BY ONE SMT. USHA DEVI SABOO W/O SHRI RAJINDER KUMAR SABOO IN T HE NAME AND STYLE OF M/S SATKRIT SERVICE TRUST. THE SAID TRUST WAS REGI STERED WITH THE SUB REGISTRAR, CHANDIGARH ON 21.4.2006. THE TRUST WAS CONSTITUTED OF TWO TRUSTEES I.E. SMT. USHA DEVI SABOO AND SMT. ANURADH A SABOO. THE AIMS AND OBJECTS OF THE TRUST WERE AS PER CLAUSE (3) OF THE TRUST DEED AND IT IS AN ACCEPTED FACT THAT THE SAID OBJECTS WERE CHARITA BLE IN NATURE. ANOTHER TRUST DEED WAS REGISTERED ON 1.11.2006 IN WHICH TWO NEW CLAUSES WERE INCORPORATED. THE FIRST CLAUSE INCORPORATED IN THE SAID TRUST DEED WAS IN RESPECT OF THE DISTRIBUTION OF FUNDS AND ASSETS IN THE EVENT OF DISSOLUTION OF THE TRUST AND THE SECOND NEW CLAUSE PROVIDED THAT O N ANY CHANGES OR AMENDMENTS TO THE CLAUSES OF THE TRUST DEED WOULD R EQUIRE PRIOR APPROVAL OF THE COMMISSIONER OF INCOME-TAX BEFORE THE SAID C HANGES ARE INCORPORATED IN THE TRUST DEED. THE SETTLER THEREA FTER AMALGAMATED THE TWO TRUSTS BY FORMING ONE TRUST THROUGH SUPPLEMENTA RY TRUST DEED REGISTERED ON 25.5.2007. THE SAID TRUST WAS GRANTE D REGISTRATION UNDER SECTION 12AA(1)(B)(I) OF THE ACT ON 17/19.07.2007. THE COMMISSIONER OF INCOME-TAX NOTED THAT IN THE TRUST DEED DATED 01.1 1.2006, THERE WAS A CLEAR STIPULATION THAT ANY CHANGE IN THE TERMS OF T RUST DEED COULD ONLY 3 BE DONE WITH THE PRIOR APPROVAL OF THE COMMISSIONER OF INCOME-TAX. FURTHER, IT WAS NOTED BY THE COMMISSIONER OF INCOME -TAX THAT THE CHARACTER OF THE TRUST WAS IRREVOCABLE AND THE SUBSEQUENT ALT ERATION OF THE TERMS OF THE TRUST DEEDS BY FORMULATING THE SUPPLEMENTARY TR UST DEED ATTRACTED THE PROVISIONS OF SECTION 61 READ WITH SECTION 63 OF TH E INCOME-TAX ACT. THE COMMISSIONER OF INCOME-TAX WAS OF THE VIEW THAT BY FORMULATING THE SUBSEQUENT TRUST DEEDS, THE INTENTION OF THE ASSESS EE WAS NOT TO CREATE AN IRREVOCABLE TRUST, WHICH WAS ONE OF THE CONDITIONS IN GETTING EXEMPTION UNDER THE ACT. THE GENUINENESS OF THE TRUST WAS, T HUS DOUBTED BY THE COMMISSIONER OF INCOME-TAX. IN VIEW OF THE ABOVE, THE ASSESSING OFFICER SUBMITTED A PROPOSAL TO THE COMMISSIONER OF INCOME- TAX RECOMMENDING THE CANCELLATION OF REGISTRATION GRANTED TO THE ASS ESSEE UNDER SECTION 12A OF THE ACT. THE ASSESSEE WAS ISSUED A SHOW CAUSE N OTICE AND WAS ALSO ASKED TO FURNISH THE DETAILS OF DONATIONS BEING GIV EN TO OTHER CHARITABLE INSTITUTIONS AND WHETHER THE SAME SHOULD BE CONSIDE RED AS APPLICATION OF INCOME FOR THE PURPOSE OF SECTION 11 OF THE ACT. A FTER CONSIDERING THE REPLY OF THE ASSESSEE, THE COMMISSIONER OF INCOME-T AX WAS OF THE VIEW THAT THE ACTIVITIES OF THE TRUST WERE GENERAL IN NA TURE AND THE ENTIRE ACTIVITY WAS UNDERTAKEN TO EVADE TAX LIABILITY IN THE INDIVI DUAL STATUS AND GET BENEFIT FOR TAX EXEMPTION IN THE TRUST STATUS FOR W ORKS WHICH WERE NOT GENUINELY CHARITABLE IN NATURE. AS PER THE COMMISS IONER OF INCOME-TAX, THE ACTIVITIES OF THE TRUST WERE NOT CARRIED OUT I N ACCORDANCE WITH THE OBJECTS OF THE TRUST AND IN TERMS OF SECTION 12AA(3 ) OF THE INCOME-TAX ACT AND THE REGISTRATION GRANTED TO THE ASSESSEE TRUST WAS, THUS CANCELLED BY THE COMMISSIONER OF INCOME-TAX. 5. THE ASSESSEE IS IN APPEAL AGAINST THE ORDER OF T HE COMMISSIONER OF INCOME-TAX. THE LD. AR FOR THE ASSESSEE REFERRED T O THE AIMS AND OBJECTS OF THE TRUST AND POINTED OUT THAT INITIALLY THE SAI D TRUST WAS REGISTERED BY 4 THE COMMISSIONER OF INCOME-TAX VIDE ORDER PASSED UN DER SECTION 12AA OF THE ACT. IT WAS FURTHER POINTED OUT BY THE LD. AR FOR THE ASSESSEE THAT ALL THE FACTS WERE ON RECORD AND NO NEW FACTS HAVE BEEN BROUGHT ON RECORD BY THE COMMISSIONER OF INCOME-TAX WARRANTING CANCELLAT ION OF THE REGISTRATION ALREADY GRANTED TO THE ASSESSEE TRUST. THE PRESENT TRUST WAS CLAIMED TO HAVE BEEN FORMED BY WAY OF A SUPPLEMENTA RY TRUST DEED, WHICH INCORPORATED ALL THE CLAUSES OF THE EARLIER TWO TRU ST DEEDS. THE LD. AR FOR THE ASSESSEE POINTED OUT THAT THE SUPPLEMENTARY TRU ST DEED WAS REGISTERED WITH THE REGISTRAR OF SOCIETIES AND AS THE PROVISIO NS OF THE ACT HAD BEEN FOLLOWED, THERE WAS NO MERIT IN THE ORDER PASSED UN DER SECTION 12AA(3) OF THE ACT. 6. THE LD. DR FOR THE REVENUE POINTED OUT THAT THER E WERE TWO OBJECTIONS RAISED BY THE COMMISSIONER OF INCOME-TAX . THE FIRST BEING THAT ANOTHER BUSINESS ENTITY WAS FORMED BY THE ASSESSEE AND SECONDLY, THE ORIGINAL TRUST WHICH WAS AN IRREVOCABLE TRUST, WAS AMENDED BY WAY OF SUPPLEMENTARY TRUST DEED. IT WAS FAIRLY ADMITTED B Y THE LD. DR FOR THE REVENUE THAT ONLY CHANGE IN THE SUPPLEMENTARY TRUST DEED VIS--VIS THE FIRST TRUST DEED WAS THE CLAUSE RELATING TO DISSOLU TION OF TRUST AND DISTRIBUTION OF ASSETS ON SUCH DISSOLUTION. THE LD . AR FOR THE ASSESSEE POINTED OUT THAT WHEN REGISTRATION UNDER SECTION 12 A OF THE ACT WAS APPLIED BY THE ASSESSEE, THE ORIGINAL REGISTRATION CERTIFICATE WAS BEFORE THE COMMISSIONER OF INCOME-TAX AND THE TRUST CREATED BY THE SUPPLEMENTARY TRUST DEED WAS REGISTERED BY THE COMMISSIONER OF IN COME-TAX AND IN THE ABSENCE OF CONDITIONS BEING NOT FULFILLED, THERE WA S NO MERIT IN THE SUBSEQUENT ORDER PASSED BY THE COMMISSIONER OF INCO ME-TAX CANCELING THE REGISTRATION GRANTED TO THE ASSESSEE TRUST. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. IN THE FACTS OF THE PRESENT CASE BEFORE US, THE TRUST WAS ORIGINALLY FORMED BY SMT. 5 USHA DEVI SABOO AS A SOLE SETTLER. THE SAID TRUST WAS REGISTERED WITH THE SUB REGISTRAR, CHANDIGARH ON 21.4.2006. THE AIMS A ND OBJECTS OF THE SAID TRUST WERE AS PER PARA 3 (A) TO 3(L) OF THE SAID TR UST DEED AND IT WAS IRREVOCABLE. HOWEVER, ANOTHER TRUST DEED WAS REGIS TERED ON 01.11.2006 UNDER WHICH TWO NEW CLAUSES WERE INCORPORATED, WHIC H READ AS UNDER : I) IN THE EVENT OF DISSOLUTION OF THE TRUST, ALL TH E FUNDS AND ASSETS STANDING IN THE NAME OF THE TRUST ON THE DAT E OF DISSOLUTION SHALL BE TRANSFERRED TO ANY OTHER TRUST OR INSTITUTION HA VING SIMILAR AIMS AND OBJECTS AND REGISTERED UNDER SECTION 12A OF THE I. T. ACT TO WHICH THE SECTION 80G APPLIES. II) ANY CHANGES OR AMENDMENTS TO THE CLAUSES OF THE TRUST DEED BY ADDITION, DELETION OR ALTERATION, IN ADDITION TO THE PROCEDURE LAID DOWN IN CLAUSE 11 OF THE TRUST DEED SHALL REQUIRE THE PRIOR APPROVAL OF THE COMMISSIONER OF INCOME TAX BEFORE T HE SAID CHANGES ARE INCORPORATED IN THE TRUST DEED. 8. A SUPPLEMENTARY TRUST DEED WAS EXECUTED ON 25.5. 2007 BY THE TRUSTEES, COPY OF WHICH IS PLACED AT PAGES 14 TO 21 OF THE PAPER BOOK. THE PERUSAL OF THE SAID SUPPLEMENTARY TRUST DEED AND TH E ORIGINAL TRUST DEED AND THE TRUST DEED EXECUTED ON 01.11.2006 REFLECTS THAT THE AIMS AND OBJECTS OF THE TRUST REMAIN THE SAME. HOWEVER, IN THE SUPPLEMENTARY TRUST DEED, THE TWO CLAUSES MENTIONED ABOVE, WERE I NCORPORATED. THE ASSESSEE APPLIED FOR REGISTRATION UNDER SECTION 12A OF THE ACT, WHICH WAS GRANTED TO THE ASSESSEE BY COMMISSIONER OF INCOME-T AX-I CHANDIGARH VIDE ORDER DATED 17/19.07.2007 PASSED UNDER SECTION 12AA (1)(B)(I) OF THE ACT. THE COPY OF THE SAID ORDER IS PLACED AT PAGES 23 & 24 OF THE PAPER BOOK. THE SAID TRUST WAS ALSO APPROVED UNDER SECTION 80G( 5)(VI) OF THE ACT VIDE ORDER DATED 17.07.2007 WHICH IS PLACED AT PAGE 25 O F THE PAPER BOOK AND THE SAID APPROVAL WAS RENEWED VIDE ORDER DATED 24.1 0.2008 AND COPY OF THE SAID ORDER IS PLACED AT PAGE 26 OF THE PAPER BOOK. AS NOTED BY THE COMMISSIONER OF INCOME-TAX, THE ORDER GRANTING REGISTRATION UNDER SECTION 6 12AA(1)(B)(I) OF INCOME TAX ACT, 1961 WAS PASSED VI DE ORDER DATED 19.07.2007 SUBJECT TO THE FULFILLMENT OF THE FOLLOWING CONDITI ONS: (I) REGISTRATION U/S 12AA OF THE INCOME TAX ACT , 1961 READ WITH SECTION 12A DOES NOT CONFER ANY RIGHT OF EXEMPTION UPON THE APP LICANT U/S 11, 12 AND 13 OF THE INCOME TAX ACT, 1961. THIS EXEMPTION FROM TAXAT ION WILL BE AVAILABLE ONLY IF THE ASSESSING OFFICER IS SATISFIED ABOUT TH E GENUINENESS OF THE ACTIVITIES PROMISED OR CLAIMED TO HAVE BEEN CARRIED OUT IN EAC H FINANCIAL YEAR RELEVANT TO THE ASSESSMENT YEAR AS PER ITS OBJECTS FOR WHICH IT HAS BEEN ESTABLISHED. (II) THE SOCIETY SHALL APPLY ITS INCOME OR ACC UMULATE IT FOR ITS APPLICATION WHOLLY AND EXCLUSIVELY TO THE OBJECTS FOR WHICH IT WAS EST ABLISHED. (III) THE SOCIETY SHALL NOT INVEST OR DEPOSIT ITS F UNDS FOR ANY FINANCIAL YEAR OTHERWISE THAN IN ANY ONE OR MORE OF THE FORMS OR MODES SPECIFIED IN SUB SECTION (5) OF SECTION 11 OF THE INCOME TAX ACT, 19 61. (IV) THE SOCIETY SHALL MAINTAIN BOOKS OF ACCOUNT REGULARLY AND SHALL GET THEM AUDITED IN ACCORDANCE WITH THE PROVISIONS OF SECTIO N 12A(B) OF THE INCOME TAX ACT, 1961. SEPARATE ACCOUNTS IN RESPECT OF EACH ACT IVITY AS SPECIFIED IN MEMORANDUM SHALL BE MAINTAINED. A COPY OF SUCH ACCO UNTS SHALL BE SUBMITTED TO THE ASSESSING OFFICER ALONGWITH THE RETURN OF ITS I NCOME FOR THE RELEVANT ASSESSMENT YEAR. (V) A PUBLIC NOTICE OF THE ACTIVITIES CARRIED ON SHALL BE DULY DISPLAYED AT THE REGD. OFFICE OF THE SOCIETY. (VI) ANY SEARCH U/S 132 OR SURVEY U/S 133A OF TH E IT ACT, 1961, CONDUCTED HEREAFTER ON THE SOCIETY OR ON ANY OF THE MEMBERS O F THE SOCIETY SHOULD BE INTIMATED TO THIS OFFICE IMMEDIATELY. (VII) THE SOCIETY SHALL REGULARLY FILE ITS RETURN OF INCOME BEFORE THE ASSESSING OFFICER IN ACCORDANCE WITH THE PROVISIONS OF THE IT ACT, 1961. (VIII) THE SOCIETY BEING REGISTERED U/S 12AA (L)(B )(I) SHALL NOT INDULGE IN ANY ACTIVITY WITHIN THE MEANING OF PROVISO TO SECTION 2 (15) OF THE IT ACT, 1961. 9. THEREAFTER, A PROPOSAL WAS SENT BY THE ACIT, CIR CLE 1(1) CHANDIGARH TO THE COMMISSIONER OF INCOME-TAX RECOMMENDING CANC ELLATION OF REGISTRATION GRANTED UNDER SECTION 12AA OF THE ACT. THE ASSESSING OFFICER IN THE SAID REPORT STATED THAT THE TRUST IS RUNNING ITS ACTIVITIES FROM THE ADDRESS SCO 88-89, SECTOR 8C, CHANDIGARH. FROM THIS ADDRESS ANOTHER TRUST NAMELY M/S DURGA INDRAMANI FOUNDATION IS ALSO RUNNING CHARITABLE 7 ACTIVITIES WITH THE SAME OBJECTIVES AND SAME FOUNDE R TRUSTEE MS. USHA DEVI SABOO W/O SHRI RAJENDRA KUMAR SABOO. ON THIS ADDRESS THE COMPANY, NAMELY M/S ETHOS (KAMALA RETAINS) PVT. LTD ., IS ALSO RUNNING ITS BUSINESS. BOTH THE TRUSTS, NAMELY M/S SATKRIT SERVI CE TRUST & M/S DURGA INDRAMANI FOUNDATION, ARE HAVING FAMILY RELATION WI TH THIS COMPANY ALSO.. THEREAFTER, SHOW CAUSE NOTICE WAS ISSUED TO THE AS SESSEE BY COMMISSIONER OF INCOME-TAX UNDER SECTION 12AA(3) OF THE ACT DATED 01.11.2012. DURING THE PROCEEDINGS, THE ASSESSEE W AS ASKED TO FURNISH THE DETAILS OF THE DONATIONS MADE TO OTHER INSTITUTIONS . ADMITTEDLY, THE ASSESSEE TRUST HAD RECEIVED CERTAIN DONATIONS FROM ITS TRUSTEES WHICH FUNDS, IN TURN WERE UTILIZED FOR GIVING FURTHER DONATIONS. THE DETAILS OF DONATIONS MADE IN THE YEARS UNDER APPEAL ARE AS UNDER : FINANCIAL YEAR : 2008-09 SR. NO. PARTICULARS AMOUNT (RS.) REMARKS 1 DONATION GIVEN TO NATIONAL ASSOCIATION FOR BLIND INDIA, NEW DELHI VIDE VIDE CH. NO. 629785 DATED 01.01.2009 FOR COMPUTER EDUCATION OF GIRL CHILD VIDE RECEIPT NO. 2152/06.01.2009 5000.00 THERE IS ONLY A COPY OF RECEIPT ISSUED BY NATIONAL ASSOCIATION FOR BLIND INDIA, NEW DELHI 2 DONATION GIVEN TO MOBILE CRECH, NEW DELHI VIDE CHEQUE NO. 629786/01.01.2009 AND RECEIPT NO. 13862/05.01.2009 5000.00 THERE IS ONLY A COPY OF RECEIPT ISSUED BY MOBILE CRECH, NEW DELHI TOTAL 10000.00 FINANCIAL YEAR : 2009-10 SR. NO. PARTICULARS AMOUNT (RS.) REMARKS 1 DONATION GIVEN TO NATIONAL ASSOCIATION FOR BLIND INDIA, NEW DELHI VIDE C. TO, 29797 DATED 01.01.2010 FOR COMPUTER EDUCATION FOR GIRL CHILD VIDE RECEIPT 2842/02.01. 5000.00 THERE IS ONLY A COPY OF RECEIPT ISSUED BY NATIONAL ASSOCIATION FOR BLIND INDIA, NEW DELHI 8 2 DONATION GIVEN TO MOBILE CRECH, NEW DELHI VIDE CHEQUE NO. 629791/26.09.2009 AND RECEIPT NO. 145/07.10.2009 5000.00 THERE IS ONLY A COPY OF RECEIPT ISSUED BY MOBILE CRECH, NEW DELHI 3 FINANCIAL ASSISTANCE GIVEN TO MR. YUDH PAL SINGH FOR EDUCATION EXPENSES OF HIS DAUGHTER SEEMA WHO IS STUDYING IN B. A. FINAL FOR THE PURCHASE OF BOOKS & STUDY MATERIALS 2500.00 THERE IS ONLY A COPY OF RECEIPT ISSUED BY MR. YUDH PAL SINGH. 4 FINANCIAL ASSISTANCE GIVEN TO MR. ARJUN DEV FOR REPAIRS OF HIS IN FLOORS AT (ROOF COLLAPSED AND WALLS DAMAGED VERY BADLY) VIDE CHEQUE NO 629792/05.10.2009 5000.00 THERE IS ONLY A COPY OF RECEIPT ISSUED BY MR. ARJUN DEV. 5 TESTING CHARGES PAID TO SPIRAL CT & MRI CENTRE FOR MRI TESTING OF MR GANDHARAV SINGH VIDE RECEIPT NO. 20089/15.11.2009 3750.00 THERE IS ONLY A COPY OF RECEIPT ISSUED BY SPIRAL CT & MRI CENTRE. 6 DONATION GIVEN TO HAMARI KAKSHA-A- CLASS APART VIDE CHEQUE NO. 629798/23.02.10 FOR EDUCATION OF POOR GIRL CHILDS VIDE RECEIPT NO. 3894/02.03.2010 25000.00 THERE IS ONLY A COPY OF RECEIPT ISSUED BY HAMARI KAKSHA-A- CLASS APART. 7 DONATION TO MANDLA MEDICAL MISSION OF ROTARY INTERNATIONAL FOR MEDICAL CAMP AT ORISSA FROM 12.03.2010 TO 17.03.2010 VIDE CH. NO.0299452/02.03.2010 15000.00 THERE IS ONLY COPY LETTER. TOTAL 61250.00 10. THE OBJECTION OF THE COMMISSIONER OF INCOME-TAX WAS THAT THE SOLE SETTLER SMT. USHA DEVI SABOO IN HER INDIVIDUAL INCO ME TAX RETURNS HAD CLAIMED DEDUCTION UNDER SECTION 80G OF THE ACT IN R ESPECT OF THE DONATIONS MADE TO THE ASSESSEE TRUST. AS PER THE C OMMISSIONER OF INCOME-TAX, THE ENTIRE EXERCISE OF FORMULATING THE TRUST WAS UNDERTAKEN TO EVADE THE TAX LIABILITY IN THE INDIVIDUAL STATUS , AND CONSEQUENTLY THE REGISTRATION WAS CANCELLED UNDER SECTION 12AA(3) OF THE ACT. 11. UNDER SECTION 12A OF THE ACT, THE CONDITIONS FO R APPLICABILITY OF SECTION 11 & 12 ARE ENLISTED AND ONE SUCH CONDITION IN ORDER TO AVAIL THE EXEMPTION UNDER SECTION 11 & 12 OF THE ACT IS TO GE T ITSELF REGISTERED IN THE PRESCRIBED MANNER UNDER SECTION 12AA OF THE ACT . THE PROCEDURE FOR REGISTRATION OF THE TRUST IS PROVIDED UNDER SECTION 12AA OF THE ACT. THE 9 ASSESSEE BEFORE US, WHICH CAME INTO EXISTENCE BY TH E SUPPLEMENTARY TRUST DEED, WHICH IN-TURN WAS PASSED AFTER COMBINING THE CLAUSES OF THE EARLIER TWO TRUST DEEDS FORMED BY THE SOLE SETTLER AS MENTI ONED IN PARAS HEREIN ABOVE. THE FIRST TRUST DEED ALONGWITH ITS OBJECTS WAS EXECUTED BY THE SETTLER AND THEREAFTER A SECOND TRUST DEED WAS EXEC UTED WITH TWO NEW CLAUSES COVERING THE EVENTS OF DISSOLUTION OF THE T RUST AND ALSO IN CASE OF ANY CHANGES OR AMENDMENTS TO THE CLAUSES OF THE TRU ST DEED, PRIOR APPROVAL OF THE AUTHORITIES WOULD BE TAKEN. THEREA FTER, THE SETTLER EXECUTED THE SUPPLEMENTARY TRUST DEED ON 25.05.2007 , UNDER WHICH THE CLAUSES OF THE EARLIER TWO TRUST DEEDS WERE AMALGAM ATED. THE SUPPLEMENTARY TRUST DEED WAS REGISTERED UNDER SECTI ON 12AA OF THE INCOME-TAX ACT BY THE COMMISSIONER OF INCOME-TAX CH ANDIGARH VIDE ORDER DATED 17.7.2007. THE SAID REGISTRATION WAS RE VOKED BY THE COMMISSIONER OF INCOME-TAX VIDE ORDER DATED 17/21.0 1.2013 AGAINST WHICH THE ASSESSEE IS IN APPEAL BEFORE US. 12. COMING TO THE PROVISIONS OF SECTION 12AA(3) OF THE ACT, IT IS PROVIDED THAT WHERE A TRUST OR AN INSTITUTION HAD B EEN GRANTED REGISTRATION AND SUBSEQUENTLY WHERE THE COMMISSIONER IS SATISFIE D THAT THE ACTIVITIES OF SUCH TRUST OR INSTITUTION WERE NOT GENUINE OR WE RE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST OR INST ITUTION, THEN AN ORDER CANCELLING THE REGISTRATION OF SUCH TRUST OR INSTIT UTION IS TO BE PASSED BY THE COMMISSIONER OF INCOME-TAX IN WRITING. THUS, I N ALL SUCH CASES WHERE A TRUST OR AN INSTITUTION WHICH HAD EARLIER BEEN GR ANTED REGISTRATION UNDER SECTION 12A OF THE ACT, BUT ON LATER DATE, IT COMES TO THE KNOWLEDGE OF THE COMMISSIONER OF INCOME-TAX THAT THE ACTIVITIES OF T HE SAID TRUST WERE NOT GENUINE AND WERE NOT BEING CARRIED OUT IN ACCORDANC E WITH THE OBJECTS OF THE TRUST OR INSTITUTION, THEN IN SUCH CIRCUMSTANCE S, THE COMMISSIONER OF INCOME-TAX IS EMPOWERED TO REVOKE/CANCEL THE REGIST RATION ALREADY 10 GRANTED TO SUCH TRUST OR INSTITUTION. IT IS NOT TH E CASE OF THE REVENUE THAT THE ACTIVITIES CARRIED ON BY THE ASSESSEE BEFORE US WERE NOT GENUINE. FURTHER, IT IS NOT THE CASE OF THE REVENUE THAT THE TRUST WAS NOT CARRYING ON ITS ACTIVITIES IN ACCORDANCE WITH ITS OBJECTS. AS REFERRED TO BY US IN THE PARAS HEREIN ABOVE, THE ASSESSEE HAD GIVEN DONATION S TO OTHER CHARITABLE INSTITUTIONS IN LINE WITH ONE OF ITS OBJECTS. THE COMMISSIONER OF INCOME- TAX IN THE FACTS OF THE PRESENT CASE HAS CANCELLED THE REGISTRATION UNDER SECTION 12AA(3) OF THE ACT AS THE ASSESSEE HAD EXEC UTED SUPPLEMENTARY TRUST DEED WITHOUT OBTAINING THE PRIOR APPROVAL. H OWEVER, THE ASSESSEE CLAIMS THAT IT HAD FOLLOWED THE PROCEDURE OF LAW AN D REGISTERED ITSELF WITH THE REGISTRAR OF SOCIETIES BEFORE MOVING THE APPLIC ATION FOR REGISTRATION UNDER SECTION 12A OF THE ACT. IN THE TOTALITY OF T HE FACTS AND CIRCUMSTANCES OF THE CASE, THE SUPPLEMENTARY TRUST DEED EXECUTED BY THE ASSESSEE ON 25.05.2007 IS NOTHING BUT THE COMBINATI ON OF THE ALL CLAUSES OF THE EARLIER TWO TRUST DEEDS AND THE AIMS AND OBJ ECTS IN ALL THE DEEDS REMAIN THE SAME. IN THE ABSENCE OF THE COMMISSIONE R OF INCOME-TAX BRINGING ON RECORD ANY EVIDENCE TO ESTABLISH THAT T HE ASSESSEE WAS NOT CARRYING ON ITS ACTIVITIES IN ACCORDANCE WITH ITS O BJECTS, WE FIND NO MERIT IN THE ORDER PASSED BY THE COMMISSIONER OF INCOME-T AX IN WITHDRAWING THE REGISTRATION GRANTED TO THE TRUST. MERELY BECA USE THE SETTLER OF THE TRUST HAS CLAIMED DEDUCTION UNDER SECTION 80G OF TH E ACT ON THE DONATIONS MADE TO THE ASSESSEE TRUST, DOES NOT MERIT THE CANC ELLATION OF REGISTRATION GRANTED TO THE TRUST. FURTHER, WE FIND NO MERIT IN THE OBJECTIONS RAISED BY THE ASSESSING OFFICER THAT THE TRUST WAS RUNNING IT S ACTIVITIES FROM WHERE ANOTHER TRUST WAS ALSO BEING RUN UNDER THE NAME AND STYLE OF M/S DURGA MANI FOUNDATION, WHICH IS THE SECOND ASSESSEE BEFOR E US AND ALSO ANOTHER CONCERN WAS OPERATING FROM THE SAID ADDRESS. IN TH E TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE, WE REVERSE THE ORDER OF COMMISSIONER OF INCOME-TAX PASSED UNDER SECTION 12AA(3) OF THE ACT AND HOLD THAT THE 11 ASSESSEE IS ENTITLED TO THE REGISTRATION ALREADY GR ANTED TO IT UNDER SECTION 12AA OF THE ACT. THE GROUNDS OF APPEAL RAISED BY T HE ASSESSEE ARE, THUS ALLOWED. 13. AS THE ISSUES AND FACTS RELATING TO ITA NO. 100 /CHD/2013 ARE IDENTICAL TO THE FACTS AND ISSUE RAISED IN ITA NO.9 9/CHD/2013, THE FINDINGS IN ITA NO. 99/CHD/2013 WOULD APPLY MUTATIS-MUTANDIS TO ITA NO. 100/CHD/2013 ALSO. 14. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE S ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 ND DAY OF AUGUST, 2013. SD/- SD/- (T.R.SOOD) (SUSHMA CHOW LA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 2 ND AUGUST,2013 POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR BY ORDER ASSISTANT REGISTRAR, ITAT,