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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 ..... tion 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 objectives and activities of the respondent / assessee are found to be the same by the Commissioner of Income Tax (Exemptions) while granting registration under Section 12A for the Assessment Year 2020-21. Tribunal has only asked the Commissioner to examine the claim of the respondent / assessee for the assessment year under consideration ke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Income Tax (Exemptions) has to satisfy himself about the genuineness of the activities and that the Commissioner of Income Tax (Exemptions) gave a clear finding that the activities of the trust are not in accordance with the provisions of the Income Tax Act, 1961? 3. In the facts and in the circumstances of the case, whether the Hon ble Tribunal (ITAT) is correct in law in not appreciating the fact that the trust applied funds outside India and hence is not eligible for registration under Section 12A of the Income Tax Act, 1961? 4. 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 unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under Section 12A was declined. 6. Respondent / assessee thereafter preferred appeal before the Income Tax Appellate Tribunal, Hyderabad A Bench, Hyderabad (Tribunal). The appeal was allowed by the Tribunal vide the order dated 27.04.2021 in the following manner : 9. Having regard to the rival contentions and the material on record, we find that the assessee is an institution which is carrying on educational activities and therefore, the activity is undisputedly a charitable act. The assessee was earlier known as Jawaharlal Nehru Technological University which has subsequently been divided into four Universities and the assessee is one of them which was formed in 2008. Section 10(23C) (iiiab) provided that the income of any Univ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here the govt. grants to such university or hospital exceeds 50% of the total receipts including any voluntary contributions of such university or other educational institution / hospital or other institution during the relevant previous year, it shall be considered as substantially funded by the govt. for such previous year. Thus, it can be seen that though the assessee university was formed in 2008, till the A.Y. 2014, it was not required to file any return of income and therefore, the assessee s contention that it was not aware of the requirement of filing returns of income appears to be bona fide. Further, the assessee has made an application for registration only w.e.f. A.Y. 2019-20 onwards. In such circumstances, the requirement of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the direction to grant registration under Section 12A of the Act if the objectives and activities of the respondent / assessee are found to be the same by the Commissioner of Income Tax (Exemptions) while granting registration under Section 12A for the Assessment Year 2020-21. 8. Thus, Tribunal has only asked the Commissioner to examine the claim of the respondent / assessee for the assessment year under consideration keeping in mind the factors which prevailed upon the Commissioner in acceding to such claim of the respondent / assessee for the succeeding assessment year on the principle of parity. Such a direction cannot be said to be illegal. 9. In the light of the above, we are of the view that no substantial question of law ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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