The tax authorities have a right to cancel registration of trusts in some situations. At the same time the trust can appeal such orders to Tribunal and higher Courts. Upon cancellation the trust is however not entitled to claim exemption.
In  445 ITR 645 (Mad) the trust went on to claim exemption in succeeding periods even after cancellation merely because it has appealed against the cancellation. However this course followed penalty notices which it further challenged before this Court in a writ but in vain.
Importantly there is word of caution in such a scenario where registration is cancelled the trust in order to safeguard its interest from penalty and interests may pay and file taxes under protest in the periods subsequent to cancellation while it continue the fight against cancellation of registration.