IT: Where Commissioner had not brought on record any material to show that activities of trust were not genuine or were not being carried out in accordance with objects of trust, cancellation of registration of trust was not proper
IT: Action of Commissioner in cancelling registration of trust did not entitle assessee for award of cost of appeal
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[2014] 52 taxmann.com 101 (Pune - Trib.)
IN THE ITAT PUNE BENCH 'B'
Parkar Medical Foundation
v.
Deputy Commissioner of Income-tax*
SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER
AND R.K. PANDA, ACCOUNTANT MEMBER
IT APPEAL NOS. 861 AND 1423 (PN.) OF 2012
JULY 31, 2014
Section 12AA of the Income-tax Act, 1961 - Charitable or religious trust - Registration procedure (Cancellation of registration) - Assessee-trust was engaged in providing medical facility/aid - Commissioner cancelled registration granted to assessee under section 12A on ground that assessee-trust was running hospital on commercial basis with profit motive and assessee-trust had violated provisions of sections 13(1)(c) and 11(5) - Whether since Commissioner had not brought on record any material to show that activities of trust were not genuine or were not being carried out in accordance with object of trust, he was not justified in cancelling registration granted earlier to assessee-trust under section 12A - Held, yes [Paras 20 & 22][In favour of assessee]
Section 254 of the Income-tax Act, 1961 - Appellate Tribunal - Powers of (Power to award cost) - Assessee trust submitted that due to illegal cancellation of its registration, huge tax demand running into lakhs of rupees were raised against trust and such action also adversely affected reputation of trust and therefore cost of appeal must be awarded to assessee - Whether Commissioner had passed an order under section 12AA(3) during course of discharge of her duty as Commissioner and while discharging her duty, her action might have caused some hardship to assessee due to error of judgment but that did not warrant levy of cost on department - Held, yes [Para 27][In favour of revenue]
IT: Action of Commissioner in cancelling registration of trust did not entitle assessee for award of cost of appeal
■■■
[2014] 52 taxmann.com 101 (Pune - Trib.)
IN THE ITAT PUNE BENCH 'B'
Parkar Medical Foundation
v.
Deputy Commissioner of Income-tax*
SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER
AND R.K. PANDA, ACCOUNTANT MEMBER
IT APPEAL NOS. 861 AND 1423 (PN.) OF 2012
JULY 31, 2014
Section 12AA of the Income-tax Act, 1961 - Charitable or religious trust - Registration procedure (Cancellation of registration) - Assessee-trust was engaged in providing medical facility/aid - Commissioner cancelled registration granted to assessee under section 12A on ground that assessee-trust was running hospital on commercial basis with profit motive and assessee-trust had violated provisions of sections 13(1)(c) and 11(5) - Whether since Commissioner had not brought on record any material to show that activities of trust were not genuine or were not being carried out in accordance with object of trust, he was not justified in cancelling registration granted earlier to assessee-trust under section 12A - Held, yes [Paras 20 & 22][In favour of assessee]
Section 254 of the Income-tax Act, 1961 - Appellate Tribunal - Powers of (Power to award cost) - Assessee trust submitted that due to illegal cancellation of its registration, huge tax demand running into lakhs of rupees were raised against trust and such action also adversely affected reputation of trust and therefore cost of appeal must be awarded to assessee - Whether Commissioner had passed an order under section 12AA(3) during course of discharge of her duty as Commissioner and while discharging her duty, her action might have caused some hardship to assessee due to error of judgment but that did not warrant levy of cost on department - Held, yes [Para 27][In favour of revenue]
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