TaxTMI 
TaxTMI 
2014 (10) TMI 1046
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....pellate Tribunal, at Panaji. 2. For the purpose of convenience and better understanding, the respondent-assessee is hereinafter referred to as 'KLE University'. 3. It is the case of the respondent-assessee that on 09.11.2004, KLE Academy of Higher Education and Research Centre, at Belgaum was registered as Society under the Karnataka Societies Registration Act, 1960, with various objects. As per the UGC notification dated 13.09.2006, the said KLE Academy of Higher Education and Research Centre was changed as "KLE University". As per order dated 22.11.2007, the Commissioner of Income Tax, Belgaum, registered it under Section 12-A of the Income Tax Act (in short IT Act). Subsequently, the Commissioner of Income Tax initiated proceedings und....
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....tion 12- AA(3) of the IT Act. This is impugned in the appeals. 4. Learned counsel appearing for the appellant/Revenue submits that the information collected about the donations paid to KLE Society by some of the students, who took admission in KLE University in the year 2008-09 is nothing but donation received for admission of the students to KLE University which is contrary to the Karnataka Educational Institutions (Prohibition of Capitation Fees) Act, 1984, and the activities of the University are not genuine and it is not being carried on in accordance with the objects and therefore, the Revenue is justified in cancelling the registration granted to KLE University under Section 12-A of the Income Tax Act from assessment year 2008-09, bu....
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..... DURGA PRASAD MORE); xiv. (1995) 214 ITR 801 (SC) (SUMATI DAYAL Vs. COMMISSIONER OF INCOME TAX). 5. Learned counsel appearing for the respondent/KLE University submits that the Revenue has no authority to hold that the donation paid to KLE Society, is capitation fee for admission of the students to KLE University. It is also contended that KLE Society and KLE University are two different entities and merely because the Chairman and few members of KLE Society are the Chairman and members of KLE University cannot be said that the KLE Society has received capitation fee in the form of donation for admission of some of the students to KLE University. It is also contended that KLE University is carrying on its objects without any deviation an....
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....rman and few members of 'the Society' are the Chairman and members of 'the KLE University', they are separate legal entities; iii. that there is no violation of any of the conditions stipulated under the IT Act, warranting for cancellation of registration of the society; iv. that the Tribunal on proper appreciation of the grounds urged by the Society and the Revenue has rightly restored the registration. and withdrawal of registration by the CIT was erroneous?" 7. Our answer to the above point is in the affirmative for the following reasons: i. that the donations received by the KLE society cannot be construed as capitation fee for the admission of students by the KLE university; ii. that the revenue appears to have not properly apprec....