CIT(E) not prerogative to grant registration to an institution as it deems fit

Chandigarh Institute of Hotel Management Vs CIT (ITAT Chandigarh)

ITAT Chandigarh held that CIT(E) cannot grant registration to an institution as he deems fit. Here, CIT(E) has granted registration to the assessee as Charitable Institution involved in “advancement of other objects of public utility” instead of Charitable Institution engaged in education activity as applied by the assessee.

Facts- The assessee as a charitable institution engaged in the education activity and rather given the registration u/s 12A of the Income Tax Act, 1961 as Charitable Institution involved in the “advancement of other objects of general public utility”. Being aggrieved, the present appeal is filed.

Conclusion- Held that it is not the prerogative of the ld. CIT (E) to grant registration to an Institution, he deems fit without going into the merits of the case. The case of the assessee has been that it is involved in education activity and is entitled to grant of registration as charitable Institution involving educational activity, but ld. CIT (E) granted registration to the assessee as an Institution involved in “advancement of other objects of public utility”. The aforesaid cryptic order of the ld. CIT (E) is not sustainable in the eyes of law at all, especially when the ld. AO has allowed the application of the assessee for approval for grant of exemption u/s 10(23C)(iiiab) of the Act for assessment year 2013-14.

FULL TEXT OF THE ORDER OF ITAT CHANDIGARH

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