APJ ABDUL KALAM TECHNOLOGICAL UNIVERSITY,TRIVANDRUM vs. COMMISSIONER OF INCOME TAX(EXEMPTION), KOCHI

The present appeal of the assessee is arising from the order of the learned Pr.Commissioner of Income-tax (Exemption) dated 30thNovember, 2023 and relates to the denial of registration u/s.10(23C) of the Income-tax Act, 1961.

The brief facts of the case are that the assessee is a society engaged in the dissemination of Education and other related activities such as granting of scholarships to meritorious students etc. The assessee has also been notified as a University by the Act No.17 of 2015 of the State Government. It has applied for the registration of 10(23C) vide application dated 1st May, 2023. Thereafter, the CIT(E) called . APJ Abdul Kalam Technological University. for the documents from the assessee and observed that the assessee has not applied or accumulated 85% of its income. Thereafter, the CIT(E) had commented upon the accounts of the assessee and had also commented upon certain income and denied the exemption to the assessee.

Aggrieved with the order of the CIT(E), the assessee has come up in appeal before us. At the outset the learned Counsel for the assessee had argued that the CIT(E) has incorrectly entered into the accounts of the assessee at the time of grant of registration.

The learned Departmental Representative appearing on behalf of the Revenue relied upon the order of the CIT(E).

We have heard the rival submissions and perused the material available on record. It is settled position of law that at the time of grant of registration the CIT(E) is not supposed to scrutinize the accounts of the assessee, which exercise has to be done by the Assessing Officer during the course of assessment proceedings. A reference can be made to the decision of Hon’ble Delhi High Court in the case of DIT Vs Opthalmic Research Education Center reported in 355 ITR 361(Del), wherein Hon’ble Delhi High Court observed as under:- “It is evident that, at this stage, the CIT is not to examine the application of income. All that he may examine is whether the application is made in accordance with the requirements of s.12A with r.17A and whether Form No.10A has been properly filled up. He may also see whether the objects of the trust are charitable or not. At this stage, it is not proper to examine the application of income.”

In the result, the appeal filed by the assessee is allowed for statistical purposes.