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2024 (2) TMI 661 - AT - Income TaxRejection of application filed in form no. 10AB for grant of registration u/s 12AB and 80G(5) - CIT(E) thoroughly discussed various discrepancies reported by the CAG to the assessee university for the FY 2021-22 wherein it is specifically observed that the loans, advances and deposits are without prior sanction of MoE/UGC HELD THAT:- Assessee university was found in default in terms of certain deficiencies and non-compliances as reported by CAG, which were examined by the Ld. CIT(E) and has culminated the order of rejection by recording her dissatisfaction under the provisions of section 12AB(1)(b)(ii)(B), however Ld. CIT(E) have not doubted or commented adverse about the objects, nature of activities and genuineness of the activities and also have not commented as to how the non-compliances /deficiencies noted are material for the purpose of achieving the objects of the assessee university which is necessary as mandated under the provisions of section 12AB(1)(b)(i)(B), still Ld. CIT(E) has valid reasons for her dissatisfaction on the basis of reported deficiencies and non-compliances on the part of assessee which may adversely affect the objects, therefore, the impugned order of cancellation cannot be squarely suffering with error of law and thus, the request of assessee to struck down the same cannot be accepted. Since the material effect of deficiencies and non-compliances on the accomplishment of objects of the assessee are not specifically brought on record by the Ld. CIT(E), therefore, in the interest of justice, for the sake of verification and clarification regarding effect of the deficiencies and non-compliance towards the achievement of the objects of the assessee university, we find it appropriate to restore the issues raised back to the Ld. CIT(E), to revisit the application of the assessee for grant of registration u/s 12AB - Assessee appeal partly allowed by way of remand.
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