Registration of Charitable Trust u/s 12AA(3) cannot be cancelled in absence of valid ground: Calcutta HC dismisses

The Calcutta High Court dismissed an appeal by the Income Tax Department seeking to cancel the registration of a charitable trust under Section 12AA(3) of the Income Tax Act. The court held that cancellation cannot occur without valid grounds, emphasizing that non-compliance with administrative requirements alone does not justify cancellation. It stressed that the trust's activities were charitable in nature, focusing on medical aid and education. The decision underscores the importance of substantive compliance and valid grounds for cancellation under tax law.