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(iii)pass an order in writing, refusing to cancel the registration of such trust or institution, if he is not satisfied about the occurrence of one or more specified violations;

(iv)forward a copy of the order under clause (ii) or clause (iii), as the case may be, to the Assessing Officer and such trust or institution.

Explanation.--For the purposes of this sub-section, the following shall mean "specified violation",--

(a)where any income derived from property held under trust, wholly or in part for charitable or religious purposes, has been applied, other than for the objects of the trust or institution; or

8.1 'Specified violation' is that if a Trust has been drawing income from the property held under a Trust, wholly or partly, which is charitable or religious in nature and suc h income has been applied other than for the objects of the Trust, meaning thereby, if income is not being applied for the objects of the Trust, then it would be construed a 'specified violation' on whose fulfilment, registration can be cancelled. The second condition is, the Trust or Institution has income from profits and gains of a business which is not incidental to attainment of its objects but s eparate books are not being maintained. For example, Hon'ble Gujrat High Court in the case of Sabarmati Gaushala has held that object of the Society was to develop the breed but any income earned by the Society A.Y.2022-23 from sale of semen was only incidental qua the main object of developing the breeds of the milking cows. If there is no incidental income, then assessee is required to maintain separate books of account and if assessee failed in maintaining such books then this would be a 'specified violation'.

A.Y.2022-23 "Commissioner of Income Tax Vs. IILM Foundation Academy" 389 ITR 148 (PB & HRY High Court)"

"Charitable trust Registration under s. 12A -Object of providing education vis-a-vis incidental objects--At the stage of registration under s. 12A r/w s. 12AA, what is required to be examined by the Principal CIT or the CIT is whether at the time of making the application and consideration thereof, the applicant fulfils the conditions prescribed under s. 12A and that its main objects are charitable or religious in nature--At that stage, to consider the objects, which are merely incidental or ancillary to the attainment of the main objects, some of which in itself may not be charitable, as distinct and independent objects would taint such consideration-- Further, registration granted under s. 25 of the Companies Act is a recognition of the fact that the assessee is essentially established for the purpose of education--As of today, there is nothing on record that the assessee is indulging in any activity which is not in the nature of charity--Tribunal while setting aside the order of the CIT, has rightly held that the assessee is eligible for registration under s. 12AA as also for exemption under s. 80G."

"Santosh Foundation Vs. Commissioner of Income Tax (Exemptions) ITA No.286/Asr/2017 (ITAT, Amritsar)" 226 TTJ (ASR) 466 "Charitable trust--Registration under s. 12AA--Charitable purpose vis-a-vis trust formed for implementing CSR activities of the settlor company--Though the main aim and object of the assessee-trust was to implement the CSR activities of the parental company, it exists per se for the benefit of general public at large--At the time of granting registration under s. 12AA, the CIT (Exemptions) need not go beyond two parameters i.e., object being charitable in nature and activities being genuine--Reason given by the CIT (Exemptions) for refusing registration to the assessee- trust that its object militates against the legal principle that social enterprises cannot be direct recipients of money from corporate is not in conformity with any of the provisions of the IT Act--Donation given by a profit-making company to the charitable trust, cannot make the activities of the trust non- charitable--Fact that the CSR expenditure is not allowable expenditure under s. 37 is relevant only for the taxability of the company incurring such expenditure--From the perception of the assessee-trust whether the amount received as donation would be eligible for exemption under s. 11 depends on the application of such fund for the charitable activities carried on by the trust-- CIT(Exemption) has neither pointed out any defect in the objects of the trust nor doubted the activities carried out to achieve these objects-- Therefore, the application for registration cannot be rejected-- Accordingly, the CIT (Exemptions) is directed to grant registration to the assessee-trust under s. 12AA from the date of application Sixth Ground of Appeal - That the Lrd. CIT Exemptions has been unjustified in cancelling Registration under section 12AB(4) relying on amendment brought by Finance Act, 2022 w.e.f. 01/04/2022 & which is not applicable for the year under consideration i.e. AY 2022 - 23.