National Institute of Construction Management and Research vs Deputy Commissioner of Income Tax (Exemptions), Circle - 2

Parties Involved

Facts Summary

The assessee, National Institute of Construction Management and Research, was formed in 1983 with the objects of imparting knowledge and education in the field of construction management and research. It was granted registration under section 12A of the Income Tax Act, 1961 on 06.02.1984 and again for assessment years 2022-23 to 2026-27 on 24.09.2021. The assessee filed its return of income for the assessment year 2022-23 on 21.09.2022, declaring a total income of Rs. Nil after claiming exemption under section 11 of the Act. The return was selected for scrutiny under CASS due to several reasons including large value refund claims and large amounts applied for charitable purposes. The Deputy Commissioner of Income Tax (Exemptions) initiated proceedings under section 12AB(4) of the Act for cancellation of registration, alleging that the assessee's activities, including Company Based Programmes (CBP), MDP Programmes, conferences, and publications, were not genuine educational activities but commercial in nature. The assessee's registration was subsequently cancelled on 04.06.2025.…

Legal Issues

• 1. Whether the activities of the assessee, including CBP, MDP Programmes, conferences, and publications, fall under the definition of 'Specified Violation' as per section 12AB(4) of the Act.
• 2. Whether the reference made by the Assessing Officer under the second proviso to section 143(3) of the Act is valid.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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