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PER: DR. S. SEETHALAKSHMI, J.M. The present appeal is filed by the above named assessee aggrieved from the order of the Learned Commissioner Income Tax ( Exemption), Jaipur (herein after referred as " CIT(E)" ), passed under section 12AA(3) & 12AA(4) r.w.s. 293C of the Income Tax Act, 1961 [ herein after referred as Act ] dated 29.10.2020.

2. In this appeal the assessee has raised the following grounds of appeal :-

Shree Rajput Sabha "1. On the facts and in the circumstances of the case the Ld. CIT has grossly erred in not appreciating that activities of the trust has not been found to be non-genuine and nothing has been brought out on record that activities of the trust has not been carried out in accordance with the objects of the trust and thereby none of the conditions stipulated in section 12AA(3) is attracted and thus order cancelling the registration is bad in law and deserves to be quashed.

As per Sub-section 3 of section 12AA, the only manner in which, Ld. CIT(E) can proceed to cancel the registration is that he has to reach a conclusion after objectively analysing of the entirety of facts, satisfying himself that either (i) the activities of the institution / trust are not genuine or(ii) these are not being carried on in accordance with the objects of the trust / institution. It is only when the Ld. CIT(E) is satisfied after examining the facts and after appreciating the explanation of assessee that either of the condition is satisfied, then he may pass an order cancelling registration. It may also kindly be noted that, in the entire order there is no whisper that activities of the appellant trust are non-genuine. It is evident that case of assessee trust is not falling in the first condition for cancellation of registration as mentioned in section 12AA(3) which empowers the Ld. CIT(E) to cancel the registration.Assessee trust being thus out of ambit of first condition, one has to see as to whether facts of thecase as have been brought out on record are such that Ld. CIT(E) is satisfied that case of assessee trust fall within 2nd condition i.e. "activities of the trust are not carried out in accordance with objects of trust."

7. We have considered the rival contention, perused the orders of the lower authority and gone through the judicial decision cited by both the parties to drive home to the contentions so raised.

As is evident that the assessee has challenged the action of the ld. CIT(E) in not appreciating that activities of the trust has not been found to be non-genuine and nothing has been brought out on record that activities of the trust has not been carried out in accordance with the objects of the trust and thereby none of the conditions stipulated in section 12AA(3) is attracted and thus order cancelling the registration is bad in law and deserves to be quashed. The assessee also contends that Ld. CIT(E) has grossly erred in observing that the assessee is carrying on activities in the nature of trade, commerce or business whereas the assessee is not carrying on any activity in the nature of trade, commerce or business and the assessee Shree Rajput Sabha is not running on commercial lines and the activities of the assessee are charitable Shree Rajput Sabha and is carrying on its activities for charitable purpose within the meaning of section 2(15) of the Income Tax Act, 1961. The profit calculated so as to decide the profit earned by the trust and activities are incorrectly derived and while doing so the receipt calculated is also incorrect which results into the incorrect appreciation of the facts. Thus, ld. CIT(E) has not appreciated the fact that coaching and career counselling and personality development and more over these activities are not run on commercial lines as the fees charged is lower than charged by the commercial centers run for profits and thereby the observation while deciding the application u/s. 80G of the Act is incorrect and liable to quashed.