The Trust entered into development agreement for development of its properties for the benefit of the Trust. However, taking exceptions to the transfer of the property of the Trust, a PIL was filed before the Hon’ble High Court of Jharkhand alleging illegal transfer of property belonging to the Appellant-Trust and other related action of the Trust. The Court after taking note of the earlier Trust Deeds of the years 1948 and 1987 held that it was the wishes of the founder of the Trust that its property could not have been sold, and by giving complete go-bye to the wishes of the founder, by a subsequent Deed dated 20.09.2005, the properties of the Trust were sold and directed CBI investigation. This order was challenged by way of an SLP. Subsequent to this order dated 07.06.2017, CIT issued show cause notice dated 18.12.2017 to the Appellant-Trust for cancellation of its registration under section 12AA of the I.T. Act relying on order dated 07.06.2017 passed in W.P. and on the ground that the Trust is violating the aims and objectives mentioned in the Trust-Deed and/or Memorandum of Association and subsequently cancelled the registration granted to the Appellant-Trust on the ground that the activities of the Trust are not genuine vide order dated 04.09.2018. The ITAT upheld the said order in appeal vide order dated 30.10.2019. On further appeal, the Court allowed the appeal, set aside order passed by ITAT.
Sri. Ramjanki Tapovan Mandir v. CIT (E) (2022) 220 DTR 49 / 329 CTR 745 (Jharkhand) (HC)
S. 12AA: Registration of Trust Deed – Cancellation of Registration -Once registration has been granted under section 12AA after satisfying about genuineness of the activities of the Trust, the same cannot be cancelled on the basis of the same set of provisions of the Trust- . [S.12A, 12AA (3)]