I.T.A. No. 85/Coch/2012. Case: Sree Anjaneya Medical Trust Vs CIT. ITAT (Income Tax Appellate Tribunal)

Case NumberI.T.A. No. 85/Coch/2012
CounselFor Appellant: T.M. Sreedharan, Ld. Senior Counsel and For Respondents: M. Anil Kumar, CIT DR. and Latha V. Kumar, Jr DR
JudgesN.R.S. Ganesan, Member (J) and Chandra Poojari, Member (A)
IssueIncome Tax Act
Judgement DateAugust 14, 2014
CourtITAT (Income Tax Appellate Tribunal)

Order:

N.R.S. Ganesan, Member (J), (ITAT Cochin Bench)

  1. This appeal of the assessee is directed against the order of the Administrative Commissioner dated 30-12-2011 rejecting the application of the assessee for registration u/s. 12AA of the Act.

  2. Shri T.M. Sreedharan, the ld. senior counsel submitted that this is the second round of litigation before this Tribunal. In the first round, this Tribunal remitted back the matter to the file of the Commissioner for reconsideration by an order dated 21-10-2011. According to the ld. senior counsel, this Tribunal directed the Commissioner to examine the trust deed and other records said to be filed by the assessee and thereafter decide the matter afresh. The ld. senior counsel further submitted that the Commissioner has not carried out the direction of the Tribunal while re-examining the matter. The Commissioner simply found that the assessee has collected money even before commencement of the medical college and therefore he found that there was a financial irregularity. Accordingly, the registration was rejected. Referring to the statement said to be recorded from the Managing Director, Shri Anil Kumar, the ld. senior counsel submitted that the assessee admittedly collected around Rs. 4 crores from the prospective employees. The assessee has also collected money from four parties and an agreement was entered into to provide admission under NRI quota for medical education. In case the medical seat could not be provided the amount received by the assessee would be returned with 12% interest per annum. According to the ld. senior counsel, the assessee has to mobilize funds for construction of massive building for medical college and hospital before grant of recognition by the Medical Council of India (MCI). Therefore, the assessee has mobilized all the resources under its control for construction of the massive building for the medical college and hospital. According to the ld. senior counsel, since the trust was established for the purpose of education and the medical college was in fact started after getting approval from the MCI, the assessee is entitled for registration u/s. 12AA of the Act. The ld. senior counsel took us through the impugned order passed by the Commissioner and submitted that the Commissioner is not justified in rejecting the claim of the assessee for registration.

  3. On the contrary, Smt. Latha V Kumar, the ld. DR submitted that it was found by the department that a huge investment was made even though there was no source for making...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT