TaxTMI 
TaxTMI 
2018 (4) TMI 84
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.... rejected by the CIT(Exemptions) vide order dated 20.10.2014. 4. Since at that point of time, the order of the CIT(Exemptions) was not appealable, the assessee preferred a petition under Article 226 of the Constitution before the Hon'ble High Court of Gujarat. The Hon'ble High Court of Gujarat in Special Civil Application No. 690 of 2015 dated 27.07.2015 considered the petition of the appellant university and ordered as under:- 10. It is an undisputed fact that the petitioner - University has been established under the provisions of the Universities Act, 2009, and accordingly, the same was included in the Schedule of the Universities Act, 23009 by publication in the Gujarat Government Gazette on 11.04.2012. We have perused the provisions of the Universities Act, 2009 as well as the First Statutes of the petitioner University. Several aspects have been pleaded by both the sides with regard to the eligibility of the petitioner - University for getting exemption under Section 10 (23C) (vi) of the Act. However, we would like to deal with the present case at this stage only on the ground that the Chief Commissioner of Income Tax had no occasion to deal with the case of the petitioner....
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....estrained ourselves from making any comments with regard to certain observations made in the impugned order. 14 Accordingly, present petition is allowed. Rule is made absolute to the aforesaid extent. No costs. Direct service is permitted. 5. Pursuant to the directions of the Hon'ble High Court, the ld. CIT(Exemptions) granted opportunity to the appellant university to present its case in relation to the claim of exemption. 6. The assessee filed necessary details along with the financial statements as per the directions of the Hon'ble High Court of Gujarat. 7. In spite of the specific directions of the Hon'ble High Court in relation to the financial statements of the appellant university, the ld. CIT(Exemptions) dismissed the application of the assessee on the ground that the appellant university is a profit making university. The ld. CIT(Exemptions) emphasized on the fact that the appellant university is totally dependent upon Sponsoring Body and whenever the Sponsoring Body wants the University can be dissolved. The CIT(Exemptions) was of the firm belief that on such dissolution all the assets of the appellant university will go back to Sponsoring Body which is against the s....
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.... EXPENDITURE 3,84,92,508 Salary and Wages 36,52,983 Legal & Professional Expenses 1,17,17,734 Advertisement & Promotional Expenses 51,29,563 Electricity & Fuel Expenses 1,23,72,023 Traveling & Conveyance Expenses 14,14,687 Telephone & Internet Expenses 17,30,708 Staff & students Welfare Expenses 50,217 Books & Periodical Expenses 4,10,495 Postage & Courier Expenses 23,590 Bank Charges 8,11,036 Misc. Expenses 3,31,622 Fees & Subscription Expenses 23,35,684 Printing & Stationary Expenses 46,77,227 Repair & Maint. Expenses 3,48,000 Rent Expenses 2,58,584 Insurance Expenses 66,11,229 Mess Expenses 5,48,418 Property Tax 2,52,432 Lab/Practical Expenses 93,60,853 Depreciation 10,05,29,593 (65,75,089) Surplus/(Deficit) for the year (65,75,089) Balance Transfer to General Fund 12. And the balance sheet as on 31.03.2014 is as under:- RAI UNIVERSITY BALANCE SHEET AS AT 31.03.2014 PARTICULARS Sch. As At 31.03.2014 SOURCES OF FUNDS * Development Fund * Unsecured Loan * General Fund Total APPLICATION OF FUNDS * Fixed Assets Gross Block ....
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....2009 included the appellant university in its schedule vide a Gazette Notification dated 11.04.2012. 15. The said inclusion by the State Government was after satisfaction that the Sponsoring Bodies have complied with the conditions of letter of intent as provided in Section 10 of the Gujarat Private Universities Act, 2009 and have also established the endowment fund as per the letter of intent. Thus the appellant university came into the control of Gujarat Government and was bound by the Gujarat Private Universities Act, 2009. As per the said Act, the application of General Fund was to be utilized for the following objects:- 38. The General Fund shall be utilized for the following objects namely:- (a) For the repayment of debts including interest charges thereto incurred by the University for the purposes of this act and the Statutes, the Ordinances, the Regulations and the Rules made threunder with the prior approval of the Governing Body. (b) To upkeep the assets of the University. 16. The ld. CIT(Exemptions) has heavily emphasized on the fate of the assets of the appellant university on its dissolution. However, the Gujarat Private Universities Act, 2009 has specifically....
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....),, if the State Government is satisfied that there is a prima facie case of contravention of any of the provisions of this Act, the Rules, the Statutes or the Ordinances made thereunder or violation of directions issued by it under this Act or there is financial mismanagement or maladministration it shall make an order or such inquiry as it may consider necessary. (3) The State Government shall, for the purposes of any such inquiry under sub section (2), appoint an inquiry officer or officers to inquire into any of the allegations and to make report thereon. (4) The inquiry officer or officers appointed under sub-section (3) shall have the same powers as are vested in a civil court under the Code of Civil Procedure 1908 while trying a suit in respect of the following matters, namely:- (a) Summoning and enforcing the attendance of any person and examining him on oath: (b) Requiring the discovery and production of any such document or any other material as may be predicable in evidence; (c) Requisitioning any public record from any court or office. (5) On receipt of the inquiry report from the officer or officers appointed under sub-section(3) if the State Government is ....