D.Y. Patil Education Society Vs CIT(Central) (ITAT Pune)
Scope of 12AA Is Limited— Commissioner Exceeded Jurisdiction – ITAT Says ‘Capitation Fee, DVO Report, Vehicle Use’ Cannot Decide Registration
Assessee, an educational society running D.Y. Patil Medical College, Hospital, Nursing Colleges, Agriculture Colleges & a Deemed University (as per HRD Ministry notification dated 01.09.2005), applied for registration u/s 12A on 12.02.2007. CIT(Central) rejected registration in 2007. In first round, ITAT vide order dated 27.09.2011 (ITA 1280/PUN/2007) held that issues like capitation fee & source of receipts are irrelevant at 12AA stage, & restored the matter to CIT to examine only genuineness of activities & charitable objects.
While giving effect, Pr.CIT again rejected the application vide order dated 24.02.2016, alleging: (i) capitation fees, (ii) diversion of funds for trustees’ residence based on DVO report, (iii) vehicles used personally, (iv) search findings, etc. Tribunal observed that Pr.CIT brought no concrete evidence, cited no names, no figures, relied on vague allegations, & ignored explicit directions of earlier ITAT order.
ITAT held that the Commissioner exceeded jurisdiction by re-examining capitation fee & other irrelevant issues despite clear judicial restriction under s.12AA. Tribunal also noted that objects of the society were clearly charitable u/s 2(15) & that Pr.CIT himself subsequently granted registration u/s 12A for AY 2022-23 to 2026-27 (order dated 16.08.2024), implying full satisfaction of genuineness of activities.
