TMI Blog2021 (4) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... already begun, then whether the assessee is carrying on its activities in accordance with such objectives. Therefore, we agree with the learned Counsel for the assessee that the CIT (E) has not looked into the objectives of this University while considering its application for registration u/s 12A of the Act. Further, from the very next A.Y i.e. 2020-21 onwards, the assessee has been granted registration u/s 12A - it is evident that the CIT (E) while granting the registration, was satisfied about the charitable nature of assessee s activities. In view of the same, we deem it fit and proper to remand the issue to the file of the CIT (E) with a direction to grant registration u/s 12A if the objectives and activities of the assessee are the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee explained that the audited reports for A.Ys 2015-16 and 2016-17 have been submitted before the Assessing Officer belatedly in the year 2019 and that the grant received from the government is only for salary and that the grant is less than 50% of its total receipts. 3. The CIT (E), on perusal of the acknowledgement of the return of income for the A.Y 2017-18 dated 23.9.2019, observed that the assessee has shown self-assessment tax payment of ₹ 50,00,000/- but has shown total income at Rs. Nil . He also observed from the computation of income filed for the A.Ys 2016- 17 to 2018-19, that the assessee has claimed benefit of section 11, even though it has not obtained the registration u/s 12A of the Act. When asked to explai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directions of University and Central Government, the Institution is imparting Advance Technology Learning along with other subjects. 4. The Appellant had filed application in Form l0A for Registration U/s. 12AA of the IT Act on 30.03.2019 and filed its Return of Income of its FY 2018-19 on 31.10.2019 within the extended time U/s. 139(1) of the Act. 5. The Id CIT erred in holding in the absence of filing of Return of Income with the Application, the Institution is not eligible for Registration U/s. 12AA of the Act. 6. The Id CIT failed to note that the Application for Registration since was made on 30/03/2019, the Return could not be filed earlier and the same was filed within the extended time and eligible for registration. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that along with Form 10A, the assessee has filed all the relevant documents and the CIT (E) ought to have considered as to whether the objects of the assessee were charitable activity or not for grant of registration u/s 12A of the Act. He submitted that the assessee is carrying on its activities strictly in accordance with the objectives. As regards the observation of the CIT (E) that the assessee has violated the provisions of section 11, he submitted that there is no violation, because the payment made by the assessee to the foreign university is not out of its own funds but was the fee collected by it from the students for their study outside India i.e. Blekinge Institute of Technology at Karlskrona, Sweden in terms of the Memorandum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r a direction to the CIT (E) to grant exemption w.e.f. A.Y 2019- 20 onwards. 8. The learned DR, on the other hand, supported the orders of the CIT (E) and submitted that the assessee has not complied with the provisions of the Act and has violated the provisions of the I. T. Act by not filing the returns of income inspite of the requirement and therefore, the assessee has rightly been denied registration u/s 12A of the Act. 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 subsequent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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