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TMI Blog2018 (4) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant documentary evidences brought on record we are of the opinion that the appellant university is not established with the profit motive. Therefore, we do not find any reason for denying the exemption u/s. 10(23C)(vi) of the Act. - Decided in favour of assessee - ITA. No. 3081/AHD/2015 - - - Dated:- 23-3-2018 - Shri N. K. Billaiya, Accountant Member And Shri S. S. Godara, Judicial Member Appellant by : Shri M.G. Patel with A.N. Shah, AR Respondent by : Smt. Aparna Agarwal, CIT/DR ORDER Per N. K. Billaiya, Accountant Member 1. With this appeal, the Assessee has challenged the correctness of the order of Ld. CIT(Exemptions), Ahmedabad dated 16.10.2015 in relation to the rejection of the application filed u/s. 10(23C)(vi) of the Act. 2. Representatives of both sides were heard at length. Having heard the rival contentions, we have carefully perused the orders of the CIT(Exemptions) and with the assistance of the ld. counsel, we have considered the relevant documentary evidences brought on record in the form of a paper book in the light of Rule 18(6) of the ITAT Rules. 3. Facts on record show that the appellant university claimed exemption u/s. 10(23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n certain circumstances. 12 Therefore, in our opinion, the impugned order requires to be quashed and set aside only on the ground referred hereinabove and accordingly, quashed and set aside. The matter is remanded to the Chief Commissioner of Income Tax for a fresh consideration with regard to the application dated 21.11.2013 submitted by the petitioner University for grant of certificate under Section 10(23C)(vi) of the Act, after giving an opportunity of hearing to the petitioner University and after considering the relevant provisions of the Income Tax Acts, powers, and the provisions of the Gujarat Private Universities Act, 2009. The authorities shall give an opportunity of hearing to the petitioner and shall deal with the submissions made by the authority including the ratio laid down by either of this Court or by any other High Courts as well as the Honourable Supreme Court while dealing with such application made under the provisions of Section 10 (23C)(vi) of the Act. 13 The above referred exercise shall be completed by the respondents authorities within a period of 8 (eight) weeks from the date of receipt of a copy of this order. Since we have remanded the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reference to Clause (iiiab) and (iiiac) relates to those appellant trust which are wholly or substantially financed by the Government. 11. Appellant University has been established under Gujarat Private University (Amendment) Act, 2012 published in Gujarat Government Gazette Extraordinary April 11, 2012. Rai Foundation is the Sponsoring Body of the appellant university who has deposited ₹ 5 crores towards endowment fund. The object of the university is for providing free education under various programmes to under privileged girls from State of Gujarat with accommodation and meals to such students as nominated by Government of Gujarat. This is in addition to the objects of the appellant university which are to create organize preserve and disseminate knowledge in the field of science, technology, humanities, social sciences, education, management, commerce, law, pharmacy, healthcare and other field for advancing of mankind in particular. The income expenditure of the appellant university for the year ended 31.03.014 is as under:- PARTICULARS AS AT 31.03.2014 Income 8,84,39,989 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 014 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 Less:- Depreciation Net Fixed Assets Capital Work in Progress Total Fixe Assets Current Assets, Loans Advances Cash Bank Balances Sundry Debtors, Loans and Advance Less : Current Liabilities NET CURRENT ASSETS TOTAL A B C D E F G 16,23,84,444 8,06,03,057 (3,60,18,363) 20,69,69,138 19,83,94,461 1,03,17,106 18,80,77,355 90,20,1227 19,70,97,482 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipt of such notice make such arrangements as may be necessary for the administration of the University from the date of dissolution of the sponsoring body till the completion of syllabus by the last batch of students admitted to the University and may also cause the functioning of the university to continue by appointing an administrator in place of the sponsoring body, who shall be entrusted with the powers, duties and functions of the sponsoring body as prescribed under this Act. 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 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reatens the academic standard of the University it may appoint an administrator. (6) The administrator appointed under sub-section (5) shall exercise all the powers and perform all the duties of the Governing Body and the Board of Management under this Act and shall administer the affairs of the University until the last batch of the students of the regular courses have completed their courses and they have been awarded with degrees, diplomas or, as the case may be, awards; (7) After having been awarded the degrees, diplomas or, as the case may be, awards to the last batches of the students of the regular courses, the administrator shall make a report to that effect to the State Government. (8) On receipt of the report under sub-section(7) the state Government hall dissolve the University and on dissolution of the University all the assets and liabilities of the University shall best in the sponsoring body. 18. In the light of the afore-stated facts, we have carefully considered the first statutes of the appellant university which is exhibited at pages 41 to 60 of the paper book. 19. In our considered opinion, it is a fallacy to state that the appellant univer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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