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TMI Blog2023 (1) TMI 518X X X X Extracts X X X X X X X X Extracts X X X X ..... nsultant teachers providing in the Indian Institution of Technology, Indian Institute of Management and other Institutions may be taken into consideration. The copy of said notification is enclosed in pages 88-118 of the paper book. In view of the aforesaid observations and respectfully following the judicial precedents relied upon hereinabove in assessee s own case [ 2020 (1) TMI 689 - ITAT MUMBAI] we deem it fit to restore this appeal to the file of the ld. AO to decide the issue. In the light of the aforesaid guidelines of UGC and AICTE notification and in accordance with law. The assessee is also at liberty to furnish further evidences, if any, in support of its contentions. Needless to mention that the assessee be given reasonable opportunity of being heard. Accordingly, the grounds raised by the assessee are allowed for statistical purposes. - ITA Nos.1082/Mum/2022 to 1086/Mum/2022 - - - Dated:- 28-11-2022 - Shri M.Balaganesh, Accountant Member And Smt Kavitha Rajagopal, Judicial Member For the Assessee : Shri Yogesh Thar For the Revenue : Shri Ujjawal Chavan ORDER PER BENCH: These appeals in ITA No.1082/Mum/2022 to 1086/Mum/2022 for A.Yrs.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant is a deemed university and well known research institute in the country and is not a business organization. 7. Notwithstanding the above the DS Commissioner of Income Tax (Appeals), Income Tax Department 1 (NFAC), Delhi in not considering the fact that consultancy projects is one of the parameters considered by the NAAC while granting accreditation to any University. 8. The Appellant is entitled to exemption under section 10(23C)(iiiab) and/or section 10(23C)(vi). However, when the appellant applied for the said exemption, it was refused inter-alia on the ground that the Appellant/applicant was entitled to exemption u/s 10(23C)(iiiab). 9. The Appellant prays that relief be granted by not treating the fees received as business income but income which is exempt under 11(a) of the Income tax Act, 1961 or grant such other relief as maybe deemed just and fit under the facts and circumstances of the case 10. The Appellant craves leave to add, alter any ground of appeal at the time of hearing of the appeal 3. We have heard rival submissions and perused the materials available on record. Though the assessee has raised several grounds, we find that the effecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is paid to the faculty who undertakes the research project. It was also submitted, the Institution s share is mainly to cover the cost of infrastructure, laboratory facilities provided by the institution for undertaking the research and administrative expenditure. Thus, it was submitted, the activities undertaken by the assessee is not in the nature of business but only for research and training purpose and therefore is part of its main activity of imparting education on the latest technical development in the field of chemical technology being a leading training Institution. The ld. AO however, did not heed to the aforesaid submissions of the assessee. He observed, nowhere in the objects of the Institution the assessee is required to provide consultancy service. Further, he observed, while making payment of consultancy fee, major companies have deducted tax under section 194C and 194J of the Act. Out of the receipt of consultancy fee, the assessee has shown payment to two professors which indicates that professionals were engaged in the activity of consultancy under the roof of the Institution and there is no major role of students for education purpose. The ld. AO concluded that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e proviso to section 2(15) of the Act is not applicable to the activity of education. 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 Institute of Chemical Technology general public utility as per the definition of charitable purpose under section 2(15) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for statistical purposes. 7. In the result, assessee's appeals are allowed for statistical purposes. 3.2. The ld. AR also drew our attention to the objects of the University Grants Commission Scheme imposing guidelines of Incentives for Resource Mobilisation which is enclosed in pages 84-87 of the paper book. In the said guidelines under the caption objectives of the scheme , we find that UGC had specifically provided in encouraging University to provide consultancy on payment basis not only to the industries but to the Government and other bodies and society at large on vital issue of national importance. This categorically goes to prove that the assessee institution is mandated / advised to provide consultancy on payment basis. Further, we find from the notification issued by All India Council for Technical Education (AICTE) dated 05/03/2010, it also provides for consultancy training for which AICTE shall work out suitable model for the purpose of revenue sharing between Institutions and consultant teachers providing in the Indian Institution of Technology, Indian Institute of Management and other Institutions may be taken into consideration. The copy of said noti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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