Chirayu Charitable Foundation v. PCIT (2021)88 ITR 451 (Indore) (Trib.)

S. 12AA : Procedure for registration-Trust or institution-Colleges and hospitals-cancellation of registration-CBI report-No independent enquiry-Creditworthiness of donors and genuineness of transaction was established-Cancellation of registration was quashed. [S. 2(15), 12AA(3), 32, 133(6), Madhya Pradesh Societies Registration Act, 1973, S. 2]

Held that  the assessee had supplied all necessary information to prove the identity and genuineness of the donors and their creditworthiness to give donations to the assessee-trust which prima facie showed that the donors were not fictitious. Secondly, the donors were trusts or institutions having sufficient funds to give donations and in reply to the notices under section 133(6) of the Act they had confirmed having given donations. Once the funds were received they were utilised for carrying out charitable activities. The transactions were carried out through banking channels and the genuineness and creditworthiness of the donations received by the assessee during various years could not be doubted as a basis for denying the registration under section 12AA of the Act. Cancellation of registration merly on the basis of CBI report was quashed.