2017 (3) TMI 529

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....educational institution for P.G. students in Management at Visakhapatnam and awarding management degrees to the students. The assessee trust was granted registration u/s 12A of the Act by the Director of Income Tax (Exemptions) vide orders dated 4.12.1990. While granting approval to the Institution, the All India Council for Technical Education (AICTE), vide its order dated 12.05.2008, has laid down a specific condition that the Institution will charge the fee as prescribed by the competent authority from time to time and in no situation, capitation fee shall be charged from the students or guardians of students in any form. 3. The assessee has applied for registration u/s 80G of the Act and the DIT vide orders dated 19.11.2009, rejected....

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.... also that the assessee has been having excess of income over expenditure for each of the A.Ys and therefore, the assessee's contention that it was running the institution on 'no profit no loss' basis is not correct. In view of the same, the DIT (E) passed an order u/s 12AA(3) of the Act withdrawing the registration granted to the assessee u/s 12A of the Act, w.e.f. 1.4.2008. Aggrieved, the assessee is in appeal before us. 5. The learned Counsel for the assessee submitted that before the Finance Act being amended by the Finance Act of 2014, the registration granted under section 12A could be withdrawn only under two circumstances i.e. (a) the activities of the trust or institution are not genuine or; (b) the activities are not bring carr....

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....ied. 7. Having regard to the rival contentions and the material on record, we find that the basis for the withdrawal of the registration u/s 12A of the Act is the order of the DIT (E) dated 19.11.2009 rejecting the application for approval u/s 80G of the Act. A copy of the order u/s 80G is placed at pages 1 to 3 of the paper book filed by the assessee. On a close reading of the said order, we find that the registration u/s 80G was rejected on the ground that the assessee is not able to establish that the fees charged by it is in accordance with the rules and regulations of the Govt. of Andhra Pradesh and also the rules and regulations framed by the All India Council for Technical Education (AICTE). It was observed by the DIT (E) that the....