M/S PUNJABI UNIVERSITY,PATIALA vs. CIT (EXEMPTIONS), CHANDIGARH

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ITA 1460/CHANDI/2016Status: DisposedITAT Chandigarh16 April 2018AY 2016-179 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(Exemptions) erred in rejecting the application solely based on the non-filing of past returns and absence of PAN. The genuineness of objects and activities are the primary criteria for registration.

What were the facts?

The assessee society applied for registration under Section 12A of the Income Tax Act, 1961. The CIT(Exemptions) rejected the application, citing the assessee's failure to file income tax returns in the past and lack of PAN.

What were the issues?

Whether the CIT(Exemptions) can reject a Section 12A registration application solely on the grounds of non-filing of past returns and absence of PAN, without examining the genuineness of the assessee's activities.

Which sections of the Income-tax Act were involved?

Section 12A,Section 139(4C)(e)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DIVISION BENCH ‘B’, CHANDIGARH

Before: SHRI SANJAY GARG & MS.ANNAPURNA GUPTA

For Appellant: Shri Rajiv Saldi, CA
For Respondent: Shri Gulshan Raj, CIT DR
Hearing: 06.04.2018Pronounced: 16.04.2018

per the provisions of section 12AA of the Act after

examining the financial statements and other relevant

documents which the Ld.CIT(E) considers necessary for

arriving at the prescribed satisfaction of the genuineness of

the objects and activities of the assessee university. We

may further add that the Ld.CIT(E) while doing so, take

cognizance of the document submitted by the Ld. counsel

for assessee stating that it was granting degrees to old

students by conducting examination on collecting fees and

seek justification of the quantum of fees so collected per

student so as to rule out that the university is indulging in

any act involving earning of profits. We further add that the

applicant University be granted due opportunity of hearing

in this regard. We therefore restore the matter back to the

file of the Ld.CIT(E) to examine the application of the

applicant University afresh and thereafter pass an order

in accordance with law.

8.

In the result, the appeal of the applicant University is allowed for statistical purposes.

Order pronounced in the Open Court.

Sd/- Sd/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 16th April, 2018 *Rati* Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) 4. The CIT 5. The DR Assistant Registrar, ITAT, Chandigarh

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