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The addition made by the AO is liable to be deleted and the assessee trust is entitled for the benefit u/s 11 and 12 of the Act to the extent the income is applied for charitable purposes. The AO has nowhere alleged that the assessee has not applied the income for charitable purposes.

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Section 2(15) & 12AA of the Income-tax Act, 1961 – Charitable purpose – Grant of registration u/s 12A is restored as objects of the assessee trust and the activities of the trust are being carried out for attainment of main objects of the trust.

Facts: CIT(E) has grossly erred in withdrawing registration u/s 12AA(3) without appreciating that he was not empowered under the said section to withdraw the registration granted to assessee u/s 12A(1)(a) in the year 1974, as the empowering provision i.e. section 12AA(3) was made operative w.e.f. 01-06-2010 i.e. A.Y. 2011-12 onwards only with retrospective effect as held by CBDT as well as various Courts. Thus the order of CIT(E) cancelling registration w.e.f. 2009-10 onwards deserves to be held bad in law.

Held, that order passed by CIT(E) is based on the presumption of incorrect facts that the activities of the assessee trust are not in accordance with the object of the assessee trust. The CIT(E) has even not taken into consideration the fact that the assessee is maintaining various Gaushalas and Famine Relief Centres and also carrying out various activities of imparting education and training. The assessee trust is also engaged in the activities of research and development of medicines by the use of cow products. Therefore, the findings of CIT(E) is contrary to the undisputed facts regarding the objects of the assessee trust and the activities of the trust are being carried out for attainment of main objects of the trust. Hence order of CIT(E) is set aside and grant of registration u/s 12A is restored. Thus the appeal of the assessee is allowed. – RAJASTHAN GAU SEVA SANGH Vs. CIT [2020] 181 ITD 660 (ITAT-JAIPUR)
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