Acharya Nagarjuna University Vs CIT (Exemptions) (ITAT Visakhapatnam)
ITAT Visakhapatnam held that CIT(E) has not brought any material on record regarding rejection of earlier application made by assessee u/s. 10(23C). Thus, matter remanded back to re-examine the application of registration made by the assessee u/s. 10(23C) of the Income Tax Act.
Facts- The assessee is an educational institution established on 17.08.1976 by Act 43 of the 1976 of Andhra Pradesh State Legislature Act and Governed by Act 4 of Andhra Pradesh Universities Act 1991. The University receives grants from University Grants Commission and other Government organizations.
CIT(E) on verification of records noticed that even though the University is 50 years old has not registered u/s. 12A or 10(23C) of the Act, earlier. The University is run by State Government or substantially financed by State Government and is entitled exemption U/s10(23C)(iiiab) or (iiiad) and is not liable to file rectums of income.
Consequently, assessee applied for registration u/s. 10(23C) under the new regime. The assessee was granted registration under Clause (i) of first proviso to clause (23C) of section 10 of the Act in Form 10AC from A.Y. 2022-23 to 2026-27. However, CIT(E) noticed that while filing the application for approval u/s. 10(23C) in Form 10A on 25.09.2023 that the assessee has stated ‘NO’ in SI.No.2 against the row “Do you have earlier issued registration/approval certificate”. CIT(E) observed that even though assessee not having earlier registration claimed to have approval u/s. 10(23C) and violated the provisions of the Act by getting the Registration for 5 years. CIT(E) observed that assessee has violated legal provisions pertaining to exemptions and thus becoming liable for disqualification of Approval u/s. 10(23C)(vi) of the Act.
