TaxTMI 
TaxTMI 
2020 (1) TMI 689
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....Mumbai. The assessee institution is basically undertaking research in the field of chemical engineering and providing training. With passage of time assessee was granted autonomy under University Grant Commission (UGC) regulations by the University of Mumbai and converted into an independent institution on 26th January 2002. Subsequently, on the recommendation of Government of Maharashtra and University of Mumbai, the assessee was granted deemed University status by the Ministry of Human Resources Development on 12th September 2008, with all the provisions of UGC for funding and support as a State owned deemed University. When the assessee was a part of Mumbai University, the income earned by it formed part of income of Mumbai University, and was exempt under section 10(23C) of the Act. For the impugned assessment years, the assessee filed its return of income under section 139 of the Act declared nil income after claiming exemption under section 11 of the Act. The Assessing Officer, in the course of assessment proceedings, noticed that during the year under consideration the assessee received consultancy fee. Noticing this, the Assessing Officer called upon the assessee to explain....
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....sessee's claim of exemption only with regard to its share in consultancy fee received, though, he allowed assessee's claim of exemption under section 11 of the Act in respect of balance income in both the assessment years. Against the aforesaid decision of the Assessing Officer, the assessee preferred appeals before the first appellate authority. 3. However, relying upon the decision of the Tribunal in assessee's own case for the assessment year 2010-11, learned Commissioner (Appeals) upheld the disallowance/addition made by the Assessing Officer. 4. The learned Authorised Representative, reiterating the stand taken before the Revenue authorities, submitted that the assessee is a purely educational institution and is a deemed university. He submitted, assessee is not only granted deemed university status by the Ministry of Human Resources Development, but it received grant from the Government under UGC regulations. He submitted, the assessee is also approved as an educational Institution for providing chemical engineering course by AICTE which is the competent authority to grant approval to technical institutions. The learned Authorised Representative submitted, the aforesaid....
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....year 2009, though, the assessee had applied for approval for claiming exemption under section 10(23C)(vi) of the Act, however, vide order dated 21st December 2009, learned Chief Commissioner of Income Tax, Mumbai, had refused to grant approval under section 10(23C)(vi) of the Act on the reasoning that assessee's case falls under section 10(23C)(iiiab) of the Act. Thus, he submitted, the Department itself recognizes the assessee as a university or other educational institution existing solely for education purpose and not for the purpose of profit. He submitted, subsequently, learned Chief Commissioner of Income Tax, Mumbai, has granted approval under section 10(23C)(vi) of the Act to the assessee for the assessment year 2014-15, thereby, recognising the assessee as a university/other educational institution existing solely for the purpose of education and not for the purpose of profit. To support the aforesaid submissions, the learned Authorised Representative sought permission of the Bench to furnish the relevant orders of learned Chief Commissioner of Income Tax, Mumbai, and few more documents as additional evidences. Thus, he submitted, assessee is otherwise eligible for exempti....
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..... It is relevant to observe, in the course of hearing before us, the assessee has filed certain additional evidences, such as, approval of AIECTE, approval of Government as deemed university, order passed by the learned Chief Commissioner of Income Tax under section 10(23C)(vi) of the Act etc. In our opinion, the additional evidences filed by the assessee will have a crucial bearing on the issue, hence, we are inclined to admit them. On a perusal of the additional evidences filed before us, prima facie, we are of the view that the assessee has been recognized as a deemed university, hence, falls within the category of university/other educational institution covered under section 10(23C)(iiib) or 10(23C)(vi) of the Act. Further, it has been recognized as an educational institution by competent authorities of the Government. Now it is fairly well settled that the proviso to section 2(15) of the Act applies only to the activity of "the advancement of any other object of general public utility" as per the definition of charitable purpose under section 2(15) of the Act. It is the contention of the assessee that since it is engaged in the activity of providing education, the provi....