TaxTMI 
TaxTMI 
2017 (5) TMI 169
X X X X Extracts X X X X
X X X X Extracts X X X X
....the Semi-Arid Tropics (ICRISAT). ISH was granted registration u/s 12AA of the Act w.e.f 01-04-2004. This institute was established by the approval of Department of Agricultural Research and education and subsequently by Min of External Affairs, to run the institution on the basis of International / British System of education. Assessee mainly admits the students of Foreign employees working in the institute and can admit up to five students per class of Indian employees. For the A.Y 2011-12, A.O noticed that Assessee is not eligible for deduction u/s 11 of the IT Act on two reasons (i) that it exceeded the number of Indian students permitted in each class, in violation of the approval granted by Min of External Affairs and also collected do....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ction of A.O and held that Assessee is not entitled to exemption of u/s 11 of the IT Act. This matter was carried to the ITAT by Assessee. The ITAT in ITA No. 1715/Hyd/2014 has clearly noted that the issue of capitation fee was only one which required adjudication, as other reasons has not been found sustainable by CIT(A). The order of ITAT in that year with reference to the issue of admitting excess students thus has become final, as revenue has not appealed on that. This fact is also clearly noted by the ITAT in para 11 as under: "11. We have considered the submissions of the parties and perused the materials on record as well as the orders of the Revenue authorities. We have also caref ully applied our mind to the decisions placed bef o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e approvals/ provisions, following the direction given by the ITAT in the earlier year and the consequential order of A.O in that year. Ld. CIT(A), without noticing the predecessor order on the issue, confirmed the disallowance u/s 11 of the IT Act by stating as under: "7. In view of the above consequential order passed u/s. 143(3) r.w.s 254 dated 30.03.2016, f or A.Y. 2011-12, wherein the AO has examined the issue, the AO is directed to allow exemption u/s 11 of the IT Act. However, the AO may verif y the number of Indian students per class, as laid down by the ministry of external aff airs and if the number exceeds the permitted limit, then the same may be brought to tax." 4. Assessee's only grievance in the appeal is with reference to....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rongly relied on the consequential order of the earlier year, when her predecessor has not sustained the reasoning, in an earlier order in Assessee's own case. He also referred to the order of the ITAT that the only issue agitated was with reference to the capitation fee collected and since there is no prescribed fee for admission of student in the school by any authority, the decision of Hon'ble Supreme Court with reference to capitation fee in Engineering and Medical Colleges does not apply to the school being run by Assessee. It was submitted that Assessee deserve relief. 6. Ld. DR, however relied on the order of the ITAT to submit that the issue was set aside to the A.O to examine all the issues as per provisions of law and accordingly....