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TMI Blog2022 (4) TMI 961X X X X Extracts X X X X X X X X Extracts X X X X ..... then whether the assessee is carrying on its activities accordingly. Therefore, we agree with the Ld. Counsel for the assessee that the Ld. CIT(E) has not looked into the objectives of this University while considering its application for registration U/s. 12A of the Act. The Ld. CIT(E) has also not disputed the activities carried on by the assessee. In view of the above findings, we deem it fit and proper to remand the issue to the file of the Ld. CIT(E) with a direction to grant registration U/s. 12A of the Act. Appeal of assessee allowed. - I.T.A. No.671/VIZ/2019 - - - Dated:- 7-4-2022 - Shri Duvvuru R L Reddy, Hon ble Judicial Member And Shri S. Balakrishnan, Hon'ble Accountant Member For the Assessee : Sri G.V.N. Hari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or after 1st September, 2019 and not in the instant case. (b) The provisions of section 12AA(1)(a) and (b) of the IT Act provide for compliance of requirements of laws other than the IT Act. (c) The Ld. CIT(Exemptions) has not stated the requirements of any law other than the IT Act which are required to be fulfilled by the Appellant for the purposes of achieving its objects. 4. The Ld.CIT(Exemptions) erred on facts and in law in denying the registration U/s. 12AA of the IT Act to the appellant on the ground that the appellant is a profit making entity. 5. The Ld. CIT (Exemptions) failed to appreciate that the application of income is not relevant for the purpose of granting the registration U/s. 12AA of the IT Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s neither audited the books of account for the Financial Years 2015-16, 2016-17, 2017-18 and 2018-19. The Ld. CIT(E) also observed that the university due to negligence has not filed its return of income. He further observed that as per the amendment to Income Tax Act effective from 1/9/2019 the assessee has to comply with the law and file the return of income. Ld. CIT (E) also observed that the assessee is a profit making entity based on the Provisional Income Expenditure Account filed before him. The Ld. CIT (E) also observed that the University has paid to various foreign universities and has violated the provisions of section 11 of the Act. Consequently, the Ld. CIT(E) found it fit to not to grant registration u/s 12A of the Act and r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra Pradesh and it does not have any Executive Council for more than a year. The Ld. Counsel for the assessee has also furnished documentary evidence in Paper Book-1 from pages 160 to 164 regarding the delay in appointing the Finance Officer for the University. In support of his contentions that even if there is a profit element in the activities carried by the asessee such a violation may not be a ground for refusal for grant of registration U/s. 12A of the Act. He placed reliance on the decision of the Hon ble Supreme Court in the case of Queen s Educational Society vs. CIT [2015] 55 Taxmann.com 255 (SC). The Ld. Counsel for the assessee pleaded that similar direction may be granted to the assessee as well. 5. The Ld. DR on the other ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly if the total income in respect of such institution, without giving the effect to the provisions of section 10, exceeds the maximum amount which is not chargeable to income tax. Sub-section (4E) to section 139 was inserted by the Finance Act of 2014 requiring every business trust, which is not required to furnish its return of income 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. We also find that Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X
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