Assessee-society is\u00a0 engaged in imparting education through a school and was granted registration under section 12A\u00a0 of the Act.\u00a0 Commissioner (E) cancelled registration granted to assessee on the ground that\u00a0 the assessee-society had not paid tax dues and it had entered into collusive arrangement with SRMAMET whereby school of assessee was transferred to SRMAMET; and application for registration under section 12AA was made by SRMAMET; in order to make assessee lose significance in running of school; with larger aim of frustrating lawful recovery of tax dues of assessee.\u00a0 In order rejecting application of SRMAMET seeking registration, it had been stated that entirely new institution (SRMAMET) was created by way of a trust which was formed by same management committee as that of assessee-society. Funds of assessee were channelized directly\/indirectly for members of management committee and, thus, assessee-society clearly stood in direct violation of section 13(1)(c). The\u00a0 assessee had also not filed returns of income under section 139 and the\u00a0 activities of assessee were not genuine within meaning of section 12AA(3). Accordingly the activities of the Trust is\u00a0 hit by section 12AA(4)(a) read with section 13(1)(c)(ii) and section 12AA(4)(b). On appeal Tribunal affirmed the order of the CIT(E) cancelling the registration.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 12AA : Procedure for registration-Trust or institution-Collusive arrangement with SRMAMET (a trust formed by same management committee as that of assessee-society)-Funds were channelized directly\/indirectly for members of management committee, assessee-society-Violation of section 13(1)(c)-Cancellation of registration is justified. [S. 12A, 12AA(4)(a), 13(1)(c)(ii)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-47870","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cs6","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47870","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=47870"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47870\/revisions"}],"predecessor-version":[{"id":47871,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47870\/revisions\/47871"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=47870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=47870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=47870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}