2021 (4) TMI 1199

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.... filed application in Form 10A on 30.03.2019 seeking registration u/s 12A of the I.T. Act. The CIT (E) issued a notice on 14.8.2019 directing the assessee to appear and produce its original Memorandum of Association (MoA/Trust Deed) and also to furnish detailed reply on specific points on or before 6.9.2019. The assessee appeared through its representative and furnished the required details. It was explained that the assessee has not filed the returns of income for the A.Ys 2014-15 & 2016-17 u/s 139(1) of the Act and that now the system does not allow the assessee to file belated returns. The assessee also explained that the return of income for the A.Y 2018-19 has not yet been filed and they want to file the returns of income for the A.....

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....(ii) The assessee has to apply its income only in India, but has failed this condition as it has spent Rs. 6,48,39,585/- outside India; and (iii) the assessee in its return of income has made a false claim of benefit u/s 11, even though it had not obtained the registration u/s 12A of the Act. 5. For all these reasons, the CIT (E) denied registration u/s 12A of the Act against which the assessee is in appeal before us by raising the following grounds of appeal: "1. The order of the Id CIT(Exemption) is contrary to the law and the facts. 2. The Appellant is a Charitable Institution Constituted by Enactment of the Government of Andhra Pradesh on 18/08/2008 for imparting Higher Education, Research, Scientific and T....

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....t of the earlier JNTU which was found in 1972 and is funded by the Govt. He submitted that the assessee was earlier exempt from tax as the assessee is engaged only in imparting education which is a charitable activity and was also exempt from filing returns of income. It is submitted that it is headed by the Governor of the State as Chancellor and Vice-Chancellor and all other Officers engaged in the services are IAS Officers appointed by the State Govt and the Institution is controlled and run under the directions of the State Govt. sponsoring number of colleges and imparting education to several lakhs of engineering students. It was submitted that the assessee has made the application for registration u/s 12A of the Act pursuant to notice....

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....nly the objectives of the Trust which are to be considered while granting registration u/s 12A of the Act, he placed reliance upon the following decisions. i) Hardayal Charitable and Educational Trust Vs. CIT reported in (2013) 355 ITR 534 (All.) ii) Ananda Social and Educational Trust vs. CIT and another in 426 ITR 340 (SC) iii) Vanita Vishram Trust v. CIT reported in 327 ITR 121 (Bom). 7. In support of his contentions that even if there is a profit element in the activities carried on by the assessee, such a violation may not be a ground for refusal for grant of registration u/s 12A of the Act, he placed reliance upon the decision of the larger Bench of the Supreme Court in the case of T.M.A. Pai Foundation v....

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....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. 10. We also find that ....