9911796707
TMI Blog2022 (4) TMI 961X X X X Extracts X X X X X X X X Extracts X X X X ..... n U/s. 12A of the Income Tax Act 1961. 2. The assessee has raised ten grounds in its appeal and they are extracted herein below for reference: "1. That in the facts and circumstances of the case, the order UI/s. 12AA of the Act passed by the Ld. CIT (Exemptions), Hyderabad is violative of the principles of natural justice, beyond the statutory powers of the ld. CIT (Exemptions), bad in law and thus, is liable to be set aside. 2. That the Ld. CIT(Exemptions) erred on facts and in law in not appreciating the settled law that the registration has to be granted only on the basis of the objects of the Trust or institution and genuineness of the activities of the Trust or institution and not any other basis. 3. That the Ld. CIT(Exemptions) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant has applied the income outside India without appreciating that the application of income is not relevant at the time of grant of registration U/s. 12AA. 8. The Ld. CIT(Exemptions) has erred in not appreciating the position of law that the registration cannot be denied on the basis of grounds relevant for cancellation of registration. 9. That the order U/s. 12AA passed by the Ld. CIT(Exemptions) is barred by limitation as the same has been served on the appellant after expiry of the period of six months. (a) That in the facts and circumstances of the case, the registration should be considered as deemed to have been granted to the appellant. 10. That in the facts and circumstances of the case, the registration U/s. 12AA sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income. He also submitted that the assessee existed only for educational purposes and was exempted from tax all along. The amendment to the Finance Act requiring to the file of the return of income along with the audit report was not advised to the Government of Andhra Pradesh and hence the assesee has not filed its return of income. The Ld. Counsel for the assessee also submitted that since the assessee has fulfilled the basic condition for grant of registration U/s. 12A of the Act, the Ld. CIT(E) has erred in denying the registration to the assessee and has caused gross injustice to the assessee. The Ld. Counsel for the assessee relied on the decision of the Tribunal in the case of Jawaharlal Nehru Technological University, Hyderabad vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... similar points and after considering the issue in detail it was granted registration. From the submissions of the Ld. Counsel for the assessee we also observed that the assessee earlier was exempted from tax as the assessee was only engaged in imparting education which is a charitable activity and was also exempt from filing returns of income. The assessee was earlier known as Jawaharlal Nehru Technological University which was subsequently 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 University or other Educational Institution existing solely for educational purposes and not for purposes of profit, and which is wholly and substantially funded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Education Institution/Hospital or other institution during the relevant previous year, it shall be considered as substantially funded by the government for such previous year. Till the AY 2014 it was not required to file any return of income and therefore the assessee's contention that it was not aware of the requirements of filing returns of income appears to be bonafide. Further, the assessee has made an application for registration only w.e.f AY 2019-20. In such circumstances, the requirement of law is that the Ld. CIT(E) has to consider whether the objectives of the assessee were charitable in nature and if the activities have already begun, then whether the assessee is carrying on its activities accordingly. Therefore, we agree with t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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