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Facts
The assessee, Indian Resource & Development Association, filed an appeal against the order of the CIT(Exemptions) rejecting its application for registration under Section 12AA of the Income Tax Act. The appeal was initially barred by limitation, but the delay was condoned.
Held
The Tribunal held that the CIT(E)'s rejection of registration was unsustainable. The CIT(E) should have examined the genuineness of the objects and activities, not the manner of income application or past taxability. The assessee's objects are educational, and the Department's subsequent grant of provisional and then regular registration supports this.
Key Issues
Whether the CIT(E) was justified in rejecting the assessee's application for registration under Section 12AA based on alleged diversion of grants and prior claims of exemption, rather than examining the genuineness of its objects and activities.
Sections Cited
12AA, 10(23C)(iiiab), 10(23C)(iiiad), 12A, 2(15), 12AB
AI-generated summary — verify with the full judgment below
Order PER LALIET KUMAR, J.M: This is an appeal filed by the Assessee against the order of the Ld. CIT Exemptions, Chandigarh dt. 08/03/2021. 2. At the outset the Registry has pointed out that the present appeal is barred by limitation by 215 days. 3. After considering the condonation application filed by the assessee, we condone the delay for which sufficient cause is shown, and admit the appeals for adjudication. 4. In the present appeal Assessee has raised the following grounds:
Order passed by Ld. CIT(Exemption) is illegal, arbitrary and bad in law.
On facts and in circumstances of the case Ld. CIT(Exemption) was not justified in holding that the society is not eligible for getting registration and thus rejecting the application of appellant for registration u/s 12AA of the IT Act. 3. On facts and in circumstances of the case Ld. Commissioner of Income Tax was not justified in holding that the activities of the society are not genuine and therefore rejecting the claim of exemption u/s 10(23C)(iiiab) and 10(23C)(iiiad) when the projects of the society are being substantially financed by the government for the purpose of education.
The assessee society, Indian Resource & Development Association, Kurukshetra, was formed on 29.12.2005 and is duly registered with the