Shaheed Nand Kumar Patel Vishwavidyalaya Vs CIT (Chhattisgarh High Court)
Allowing the Appeal filed by the Assessee University thereby quashing & setting aside the Orders of the CIT(Exemptions) & the Income Tax Appellate Tribunal, Raipur Bench rejecting the application for registration of the University (State Government University) under section 10(23C)(vi) of the Income Tax Act. The Hon’ble High Court elucidates & explains the law laid down by the Hon’ble Supreme Court in the case of Chief Commissioner v. New Noble Educational Society (2023) 6 SCC 649/[2022] 448 ITR 594 (SC) in the matters of Registration/Approval under section 10(23C)(vi) and expounds that both the lower authorities have failed to record a specific finding that the University is not existing solely for educational purposes and is existing for purposes of profit, such a finding was sine qua non and unexceptionable before rejecting the application for registration under the provisions of section 10(23C)(vi) of the IT Act. If it is found in the affirmative that the University fulfills the said conditions, then the registration could be granted. Further, the Hon’ble High Court explicates that the both the authorities have failed to go through the Objects of the University and has also failed to record a finding with respect to education or educational activities nor have expressly recorded that the appellant does not satisfy the objects and the genuineness of its activities as per the prescription of 2nd Proviso to section 10(23C). The matter was remitted to the CIT(Exemptions) to consider & decide the application u/s.10(23C)(vi) afresh in the light of principles laid down by the Hon’ble Supreme Court in New Noble Educational’s case within a period of two months. {Shaheed Nand Kumar Patel Vishwavidyalaya v. Commissioner of Income Tax (Exemptions) [2024] 163 taxmann. com 719 (Raipur – Trib.)[31-05-2024] reversed & disapproved.}
