AO couldn’t reject sec. 12AA registration merely because assessee was claiming exemption u/s 10(23C)

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AO couldn't reject sec. 12AA registration merely because assessee was claiming exemption u/s 10(23C)
AO couldn’t reject sec. 12AA registration merely because assessee was claiming exemption u/s 10(23C)
CIT v. Beant College of Engineering & Technology – [2019] 108 taxmann.com 196 (Punjab & Haryana)
Assessee-trust running a school had filed application for registration under section 12AA. The Commissioner (Exemptions) took a view that assessee had been claiming exemption under section 10(23C)(iiiad) and, therefore, should not have filed application under section 12AA.
He further opined that assessee was running a school which had not been reflected in byelaws as an object of society as contained in Memorandum of Association. Accordingly, it’s application for registration was rejected.
The Punjab & Haryana High Court upheld the view taken by Tribunal that assessee was free to avail registration under any alternative provision if more than one alternative was available. Thus, assessee was eligible for registration under section 12AA for which it had applied.
Further, mere non-mentioning of schools and colleges in Memorandum of Association would not disentitle assessee to get registration under section 12AA. Since no illegality or perversity could be pointed out by revenue in findings recorded by Tribunal, impugned order allowing assessee’s application for registration was to be upheld.

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