TaxTMI 
TaxTMI 
2021 (4) TMI 102
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....ner of Income Tax (Exemption) ['CIT (E)'] under Section 12AA of the Income Tax Act, 1961 ("the Act")is bad-in-law and clearly beyond jurisdiction. 1.1 That on the facts and circumstances of the case, the impugned order having been passed by the CIT (E) without affording adequate opportunity of being heard to the appellant, is violative of principles of natural justice and is, therefore, illegal and bad in law inasmuch as: a) the impugned order has been passed by the CIT(E) without providing any opportunity of being heard to the Appel lant himself, which is clearly in contravention of the provisions of Section 12AA of the Act; b) the CIT(E) drew adverse inferences and making certain baseless al legations, without j....
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....there has in fact been no allegation/ finding by the Competent Authority of any contravention under the said Act. WITHOUT PREJUDICE 3. That the CIT(E) erred on facts and in law in relying, and reading totally out of context, certain contents of the Appellant's website, without appreciating that: (a) The same was not confronted to the Appel lant; (b) The interpretation drawn basis the same was not only erroneous but also not warranted at all. 4. That the CIT (E) erred on facts and in law in alleging that the land used by the Appel lant University has been 'transferred' by IILM Education Trust ('Sponsoring Body') without any terms and conditions without appreciating that such land being owned by th....
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.... as per the provisions of the Haryana Private Universities Act, 2006 which required the Appel lant to intimate for information only. 8. That the CIT(E) erred on facts and in law in alleging that the Appel lant failed to provide complete books of accounts for verification without appreciating that: (a) the Appel lant was asked to produce complete books of accounts only at the fag end of the limitation period; (b) the Appel lant had offered during the proceedings to submit any specific ledger/voucher etc. on being so intimated; (c) the Appellant had duly placed on record provisional financial statements, receipts &payments account, copies of the bank statements; (d) the Appel lant was not provided ....
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....der clause (a) [or clause (aa) of sub-section (1)] of Section 12A Shall- (a) Call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf; and (b) After satisfying himself about the objects off the trust or institution and the genuineness of its activities, he- (i) shall pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution....... 5. The definition under section 2(15) of the Act defining chari....
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....tion is made in accordance with the requirements of section 12A of the Act and whether form No.10A has been proper or not. The Commissioner is further to examine whether the objects of the trust are charitable or not and also to satisfy himself about the genuineness of the activities of the trust or the institution. The Commissioner is not to examine the application of income at this juncture. The Hon'ble Supreme Court in CIT v. U.P. Forest Corpn. [1998] 230 ITR 945/97 Taxman 259 (SC), held that in order to take advantage of the provisions of section 11 of the Act, the trust or the institution has to get itself registered. Whether the income of the institution can be regarded as being held for charitable purposes and whether the inst....