RAJASTHAN TECHNICAL UNIVERSITY vs. THE C I T , EXEMPTION,

[2025:RJ-JP:10781-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 35/2021 Rajasthan Technical University, Rawatbhata Road, Akelgarh, Kota, 324010 Through Manoj Kumar Jangid, Assistant Registrar. ----Appellant Versus The C I T, Exemption, Jaipur. ----Respondent For Appellant(s) : Mr. Rajat Sharma & Mr. Nilimesh Sen for Mr. Sanjay Jhanwar, Sr. Adv. For Respondent(s) : Mr. Shantanu Sharma with Mr. Parth Vashishth HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE MANEESH SHARMA Order 10/03/2025 1. This is an appeal filed under Section 260A of the Income Tax Act, 1961 (for short ‘the Act’). The order passed by the Income Tax Appellate Tribunal dated 11.08.2020 dismissing the appeal being time barred. 2. The appellant-university was established under the Rajasthan Technical University Act, 2006 by the Government of Rajasthan. The university was incorporated with effect from 31.12.2005. The university on 09.04.2006 applied for registration under Section 12AA of the Act. The Commissioner of Income Tax (Exemptions) (for short ‘CIT(E)’) vide order dated 06.11.2017 granted registration w.e.f. 01.04.2017. On finalization of the assessment for the assessment year 2018-19, university realized that benefit under Section 12AA of the Act was not available, as the exemption

[2025:RJ-JP:10781-DB] (2 of 3) [ITA-35/2021] was granted from 01.04.2017. The order of the CIT(E) was challenged before the tribunal accompanied by an application for condoning the delay of four hundred forty four days. On refusal to condone the delay, the present appeal is filed. 3. Learned counsel for the appellant submits that the appellant is a University established under the statue by the Government of Rajasthan. The appellant was eligible for exemption u/s 10(23C) of the Act but in view of the notification No.79/2014 dated 12.12.2014 with reference to rule 2BBB, there was confusion with regard to exemption to be availed. As per the legal advice received, the university applied for exemption u/s 12AA of the Act and the CIT(E) allowed exemption w.e.f. 01.04.2017 instead of date of incorporation of university. 4. Learned counsel for the respondent submits that the vague explanation was put-forth by the university for condoning the delay and the tribunal rightly rejected the application for condoning the delay. 5. The appeal was admitted on 05.05.2023 on following substantial question of law:- “Whether the Tribunal acted with perversity in dismissing the appeal as barred by limitation and refusing to condone the delay in filing the appeal?” 6. The appellant-university is a statutory body and was established under the statute. It is not in dispute that the university was eligible for exemption. On legal advice received, in view of the notification dated 12.12.2014 the appellant applied for exemption u/s 12AA of the Act.

[2025:RJ-JP:10781-DB] (3 of 3) [ITA-35/2021] 7. The appellant was under impression that exemption has been granted but on framing of the assessment, it revealed that the exemption was not effective from the date of incorporation. 8. The law is well settled that for condoning the delay, liberal approach should be adopted. There was uncertainty with regard to effect of notification dated 12.12.2014 and appellant acted on legal advice. The fluid position with regard to availing of benefit of exemption and the legal advice resulted in delay. The eligibility of university from claiming exemption is not in dispute, the issue is only with regard to date, it should be effective from 01.04.2017. 9. In view of the above, the delay is condoned. The matter is remitted back to the tribunal to decide the appeal on merits. 10. The appeal is disposed of. (MANEESH SHARMA),J (AVNEESH JHINGAN),J Monika/69 Whether Reportable: Yes/No