Its inhuman to collect money for admission in medical college

Application of Registration u/s 12A was rejected by the Commissioner as he  found that the assesseehas collected money even before commencement of the medical college and therefore he found that there was a financial irregularity.  Accordingly, the registration was rejected. Referring to the statement said to be recorded from the Managing Director, Shri Anil Kumar, the assessee admittedly collected around Rs.4 crores from the prospective employees. The assessee has also collected money from four parties and an agreement was entered into to provide admission under NRI quota for medical education. In case the medical seat could not be provided the amount received by the assessee would be returned with 12% interest per annum.. The object of granting registration u/s 12AA of the Act and exemption u/ss 11 and 12 is to encourage the non governmental organization to establish educational institution and to run the same in a charitable manner after collecting the fees prescribed by the government or the committee appointed by the state government. In this case, even before starting the college and even before obtaining recognition from the MCI and affiliation from the concerned university, the assessee mobilized funds on the assurance of employment and admission in the medical college.

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Name: CA Prarthana Jalan

Qualification: CA in Practice

Company: N/A

Location: Uttar Pradesh, IN

Member Since: 28 May 2018 | Total Posts: 129

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Issues on Income Tax Portal: Request for ITR Deadline Extension AO exceeded jurisdiction in verifying demonetisation cash deposit below ₹2.5 lakhs Unless escaped income exceeds ₹50 lakhs no action beyond 3 years could take place No section 271B penalty if reasonable cause exist or if assessee establishes its bonafides Examination of Books of Accounts is mandatory before rejection of books of accounts View More Published Posts