CMR Educational Society Vs DCIT (ITAT Hyderabad)
ITAT Hyderabad held that cancellation of registration granted to appellant-society u/s. 12AA of the Income Tax Act not justifiable since conditions precedent for cancellation of registration u/s. 12AB(4)(ii) of the Income Tax Act not satisfied.
Facts- The appellant/ assessee i.e. CMR Educational Society has been formed on 21.08.2001 and registered under the Andhra Pradesh Societies Registration Act, 2001 with the main object of promoting education, establish nursery, degree engineering and management colleges, working towards protection of environment, imparting education to children/students in the Educational Schools, Colleges, Institutions etc. The appellant society is running various colleges and offering various degree courses. The appellant society has been granted registration u/s 12AA of the Income Tax Act, 1961 vide order of the Director of Income Tax (Exemptions), dated 23.03.2004 and the same has been extended/renewed from time to time on an application made by the appellant society.
PCIT concluded that the appellant society activities are not carried out in accordance with all or any of the conditions subject to which the registration was granted u/s 12AA of the Act. Since the income derived from the property held under trust, wholly or in part has been applied, other than for the objects of the trust or institution and further, activities being carried out by the trust or institution is not genuine and are not being carried out in accordance with all or any of the conditions subject to which the registration was granted to the appellant society, the registration granted to the appellant society u/s 12AA of the Act should be withdrawn. Thus, rejected the explanation of the assessee and cancelled the registration granted u/s 12AA of the Act vide order dated 29.03.2025 w.e.f. A.Y. 2019-20 u/s 12AB(4)(ii) of the Income Tax Act, 1961. Being aggrieved, the present appeal is filed.
