2018 (4) TMI 84

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....s of the law. However, the said application was 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....

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....nt of exemption on sufficient materials by the Income Tax Officers, we have restrained 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....

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....dy - Income Received from Consultancy and other work - Grants 13,94,371 Interest Received 41,20,144 Other Receipts 9,39,54,504   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 ....

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.... B.TECH (Mechanical) 202,500 10,349,639 - 10,552,139 TOTAL-B-TECH 587,500 29,542,939 - 30,130,439 BBA - 1,025,000 - 1,025,000 Bsc. (Bio-Tech) - 480,000 - 480,000 BSC. (Microbiology) 30,000 490,000 - 520,000 TOTAL-GRADUATE COURSE 30,000 1,995,000 - 2,025,000 Diploma (Civil Engg.) - 1,650,000 - 1,650,000 Diploma (Computer Science) - 682,000 - 682,000 Diploma in Automobile - 1,241,000 - 1,241,000 Diploma in Electrical - 1,447,000 - 1,447,000 Diploma in IT - 213,000 - 213,000 Diploma in Mechanical - 4,634,000 - 4,634,000 TOTAL-DIPLOMA - 9,867,000 - 9,867,000 MBA 84,400 2,082,600 - 2,167,000 TOTAL-MBA 84,400 2,082,600 - 2,167,000 PHD - 11,275,065 7,786,935 19,062,000 TOTAL-PHD - 11,275,065 7,786,935 19,062,000 ONLINE COURSE FEE....

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....t. 42(1) The sponsoring body who intends to dissolve the University shall give a notice to that effect in the prescribed manner to the State Government. The State Government, after due consideration may dissolve the University in the manner as may be prescribed. Provided that the dissolution of the University shall have effect only after the last batches of students of the regular courses have completed their courses and they have been awarded degrees, diplomas or, as the case may be, awards. (2) On the dissolution of the University all the assets and liabilities of the University hall vest in the Sponsoring body in the manner as may be prescribed. (3) Where the Stat Government decides under sub-section (1) to dissolve the University, it may vest the powers of the Governing body in the prescribed manner to other societies having similar objects till the dissolution of the University takes effect under the proviso to sub-section (1). 17. The Act further provides - 43. (1) Where the State Government is of the opinion 'that the University has contravened any of if it; provisions of tin's Act, the Rules, the Statutes or the Ordina....