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TMI Blog2022 (1) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... n I.T.A.No.1769/Hyd/2019 for the Assessment Year 2019-20. 3. Appellant has proposed the following questions as substantial questions of law, viz., "1. In the facts and in the circumstances of the case, whether the Hon'ble Tribunal (ITAT) is correct in law in directing the Commissioner of Income Tax (Exemptions) to grant registration under Section 12A of the Income Tax Act, 1961, if the objectives and activities of the Respondent-assessee are the same as for the assessment year 2020-21? 2. In the facts and in the circumstances of the case, whether the Hon'ble Tribunal (ITAT) is correct in law in not appreciating that as per Section 12A of the Income Tax Act, 1961 the Commissioner of Income Tax (Exemptions) has to satisfy himself about t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he application of the respondent / assessee, primarily on two grounds. Firstly, it was noticed that respondent / assessee had not filed return of income, thus violating provisions of the Act. Therefore, respondent / assessee was not eligible for registration under Section 12A which is a beneficial provision. Secondly, Commissioner observed that respondent / assessee had earned income outside India. Referring to Section 11 of the Act, Commissioner held that respondent / assessee had not obtained permission from the Central Board of Direct Taxes while earning income abroad. Thus, it had violated provisions of the Act. On this ground also, its prayer for registration under Section 12A was declined. 6. Respondent / assessee thereafter preferre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me or loss under any other provisions of this section, to furnish return of such income of the previous year in the prescribed form and verified in the prescribed manner or as may be prescribed and all the provisions of this Act shall so far as may be, apply as if it were a return to be furnished under sub-section 1 of section 139 of the Act. We find that this amendment was w.e.f. 1.4.2015. 10. We also find that Rule 2BBB has also been introduced w.e.f.12.12.2014 prescribing the percentage of govt. grant for considering a university, hospital, etc., as substantially funded by the govt. for the purposes of clause (23C) of section 10 and it provides that where the govt. grants to such university or hospital exceeds 50% of the total receipts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the objectives and activities of the assessee are the same as were considered by the CIT(E) while granting registration u/s 12A of the Act for the A.Y. 2020-21 onwards." 7. From the above, we find that Tribunal had taken note of the fact that for the next Assessment Year 2020-21 respondent / assessee has been granted registration by the Commissioner of Income Tax (Exemptions) under Section 12A of the Act which would imply that the Commissioner was satisfied about the charitable nature of assessee's activities. In view of above, Tribunal thought it fit and proper to remand the matter back to the file of the Commissioner of Income Tax (Exemptions) with the direction to grant registration under Section 12A of the Act if the objectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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