Hardayal Charitable and Educational Trust v. CIT

Kakatiya University, Warangal vs. Commissioner of Income Tax, (Exemptions), Hyderabad

In the result, assessee’s appeal is treated as allowed for statistical purposes

Bench: Smt. P. Madhavi Devi & Shri A. Mohan Alankamonykakatiya University, Vs. The Commissioner Of Warangal, Income Tax Vidyaranyapuri, (Exemptions), Hanamkonda, Hyderabad. Warangal – 506009. Pan : Aaagk0334C (Appellant) (Respondent) Assessee By: Sri E. Phalguna Kumar, Ar Revenue By: Sri Y.V.S.T. Sai, Dr Date Of Hearing: 18/08/2021 Date Of Pronouncement: 07/10/2021 O R D E R Per Smt. P. Madhavi Devi, J.M. This Is Assessee’S Appeal Against The Order Of The Cit (Exemption), Hyderabad, Denying The Registration To The Assessee U/S 12A Of The Act Vide Order U/S 12Aa(1)(B)(Ii) Of The Income Tax Act, 1961 Dated 27.09.2019. 2. Brief Facts Of The Case Are That The Assessee Is A University Imparting Education Within Its Territorial Jurisdiction & It Is Totally Funded By The Government. It Filed Its Application In Form 10A On 31.03.2019 Seeking Registration U/S 12A Of The Act. The Cit(E) Called For Various Details Observing That The Assessee Has Not Filed The Return Of Income For The Relevant Year 1 & Has Also Got Its Accounts For The F.Y. 2016-17 & 2015-16 Audited Only On 16.09.2019, I.E. Beyond The Statutory Time Limit. He Observed That Assessee Has Deliberately Not Filed Its Return Of Income & Thus Violated The Provisions Of The Act. He Observed That As Per The Amended Act, W.E.F. 01.04.2019, The Compliance Of Law By A Trust Is Mandatory. Therefore He Observed The Assessee Has Violated The Law & Therefore Was Not Eligible For Registration U/S 12A Of The Act. He Accordingly Denied The Registration U/S 12A Of The Act Against Which Assessee Is In Appeal Before The Tribunal By Raising The Following Grounds Of Appeal :

…of his contentions that it is only the objectives of the Trust which are to be considered while granting registration u/s 12A of the Act, he placed reliance upon the following decisions. i) Hardayal Charitable and Educational Trust Vs. CIT reported in (2013) 355 ITR 534 (All.) ii) Ananda Social and Educational Trust vs. CIT and another in 426 ITR 340 (SC) iii) Vanita Vishram Trust v. CIT reported in 327 ITR 121 (Bom). 7. In support of his contentions that even if there is a profit element in the activities carried on by the assessee, such a violation may not be a 6 ground for refusal for grant of registration u/…