Section 12AA(4) of the Income Tax Act
The decision most relied on for Section 12AA(4) is DIT(E) v. Meenakshi Amma Endowment Trust (354 ITR 219), cited in 26 of the 29 judgments on BharatTax that turn on this section.
Leading authorities on Section 12AA(4)
Registration of a charitable trust cannot be cancelled solely on the ground that expenses from the corpus fund were claimed towards application, or that amounts set apart for specific purposes were improperly used, or that expenditures were not towards the trust's objects.
Registration under Section 12A cannot be cancelled solely on grounds that were or could have been considered at the time of granting registration. The benefit of Section 12A registration is not available if the assessee's case falls under the first proviso to Section 2(15).
A violation of Section 13 provisions empowers an Assessing Authority to forfeit exemptions under Sections 11 and 12, but this violation cannot be the sole ground for cancelling a trust's registration under Section 12AA(3).
