Where the assessee Trust had entered into a transaction with a person referred to in section 13 and therefore there was a violation of section 13(1), its effect was to be seen by the AO while carrying out the assessment. Such a violation was not a ground for cancellation of registration. The only grounds for cancellation of registration under section 12AA are where it is discovered that the activities of the Trust are not genuine or they are not being carried out in accordance with the objects of the Trust.