Case Law Details
Rajasthan Para-Medical Council Vs CIT (ITAT Jaipur)
ITAT Jaipur held that as the activities carried out by the appellant (Rajasthan Para-Medical Council) are not in the nature of trade, commerce or business, hence registration under section 12AA should be granted.
Facts- The assessee Rajasthan Para-Medical Council is established by an Act of State Legislature with the aim to develop, promote and regulate education in para-medical courses and mainly carrying out the functions as prescribed u/s. 13 of the RPMC Act, 2008.
The applicant filed application online on 04.06.2020 in Form No. 10A for seeking registration u/s. 12AA of the Income Tax Act, 1961. The ld. CIT (E) rejected the application for registration u/s. 12A of the IT Act, 1961 stating that it is not covered as Education because it is a regulatory body for Para-medical education and does not provide direct schooling. As per the order, it was mentioned that the appellant Council is covered under General Public utility but since, the major receipts are from exam fee, revaluation fee, students registration fee, affiliation etc., hence are treated as business receipts. Aggrieved by the order of the ld. CIT (E), the assessee has filed the present appeal.
Conclusion- There can be a revenue surplus in particular year/s which is allowed to be applied in the next year(s) as permitted under the Act. The un-applied amount becomes the income of the assessee after the end of the time-limit. Since, the proviso to section 2(15) is, otherwise, also not applicable as the activities are not in the nature of trade, commerce or business.
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