Present appeal has been filed against the order dated 29.09.2010
(Annexure A-3) passed by Income Tax Appellate Tribunal, whereby appeal
against order dated 16.03.2010 (Annexure A-2) passed by Commissioner of
Income Tax cancelling registration under Section 12AA of Income Tax Act,
1961 in favour of respondent-Trust, was allowed.
2. Factual matrix required to appreciate and decide controversy arising in
present case is being noticed herein. Respondent-Baba Gandha Singh
Educational Trust on application dated 11.04.2007 was granted registration
under section 12AA of the Income Tax Act, 1961 (hereinafter referred to as
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‘1961 Act’) vide order dated 29.08.2007 (Annexure A-1) w.e.f. 01.04.2007
for pursuing educational activities. On 05.11.2009, the Commissioner of
Income Tax, Patiala issued a notice under Section 12AA(3) of 1961 Act
proposing to cancel the registration of the respondent-Trust on the ground
that it was generating surplus for assessment year 2002-03 to assessment year
2007-08 and therefore went beyond the purpose for which registration was
accorded to it.