VISVESWARAIAH TECHNOLOGICAL V. THE ASST. COMMISSIONER OF INCOME TAX

ITA/100017/2014

AI Insights

Vishweshwaraiah Technological University, represented by its registrar, appealed against the order of the Income Tax Appellate Tribunal, which had denied them an exemption from income tax for the assessment year 2010-2011. The university sought this exemption under Section 10(23C)(iiiab) of the Income Tax Act, 1961, claiming that their income was solely for educational purposes, not for profit, and that they were wholly and substantially financed by the government. The Tribunal's decision was based on a precedent set by the High Court in earlier years, which was upheld by the Supreme Court. The High Court of Karnataka, Dharwad Bench, dismissed the university's appeal, agreeing with the Tribunal's and the Supreme Court's earlier rulings.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 699042 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 07-11-2016
• Assessment Year: misc
• Other Referred Cases: I.T.A.Nos.5007-5012/2013, Civil Appeal Nos.4361-4366/2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: Y V RAVIRAJ
• Assessee Lawyers: K ANAND KUMAR
• Keywords: Educational Purpose; Exemption; Profit; Wholly and substantially financed by the Government
• Section: 260A; 10(23C)(iiiab)

Judgement Text

"IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 07TH DAY OF NOVEMBER, 2016 PRESENT THE HON’BLE MR. JUSTICE ASHOK B. HINCHIGERI AND THE HON’BLE MR. JUSTICE P.S. DINESH KUMAR I.T.A.No.100017 OF 2014 BETWEEN: Vishweshwaraiah Technological University, Jnana Sangama Campus, Santi Bastwad Road at Belgaum, Dist. Belgaum – 590 014, By its Registrar. … Appellant (By Sri K.Anand Kumar, Advocate) AND: The Asst. Commissioner of Income-Tax, Circle-1, Feroz Khimjibhai, Commercial Complex, Opp. Civil Hospital, Dr.Ambedkar Road, Belgaum. … Respondent (By Sri Y.V.Raviraj, Advocate) This ITA is filed under Section 260A of the Income Tax Act, 1961 against the order passed in ITA No.267/PNJ/2013 dated 28.3.2014 on the file of the Income Tax Appellate Tribunal, Panaji Bench, Panaji, appeal is dismissed. 2 This ITA, coming on for admission, this day, P.S.DINESH KUMAR J, delivered the following: J U D G M E N T This appeal filed by the assessee is directed against the order, dated 28.03.2014 in I.T.A.No.267/PNJ/2013 for the assessment year 2010-2011. 2. The assessee is a Technical University established under Section 3 of the Vishveshwaraiah Technological University Act, 1994. It claimed exemption under Section 10(23C)(iiiab) of the Income Tax Act, 1961. The assessing authority – Deputy Commissioner of Income Tax rejected the exemption claimed, by his order, dated 30.01.2013. Assessee challenged the said order before the Commissioner of Income Tax (Appeals), who vide order, dated 29.08.2013 confirmed the order passed by the assessing authority. Feeling aggrieved, the assessee challenged the order in appeal before the I.T.A.T., Panaji Bench, Panaji (‘Tribunal’ for short). By the impugned order following the earlier judgment of this Court in I.T.A.Nos.5007-5012/2013 for the assessment years 2004-2005 to 2009-2010, the Tribunal dismissed the appeal. Hence this appeal. 3 3. Heard Sri K.Anand Kumar, learned counsel for the assessee and Sri Y.V.Ravi Raj, learned counsel for the Revenue. 4. During the course of hearing, learned counsel for the assesee fairly concedes that the order under appeal is based on an earlier order passed by this Court in I.T.A.Nos.5007- 5012/2013 for the assessment years 2004-2005 to 2009-2010. The said order of this Court was challenged before the Hon’ble Supreme Court in Civil Appeal Nos.4361-4366/2016 and the same has been dismissed by order dated 22.04.2016. 5. Sri Y.V.Ravi Raj, learned counsel for the Revenue submits that the issue involved in these appeals is whether the three conditions stipulated in Section 10(23C)(iiiab) of the Income Tax Act have been satisfied by the assessee or otherwise while claiming exemption. He contended that the exemption is permissible where the income received by any University or educational institution is solely for educational purpose; it is not collected for the purposes of profit; and such institution is wholly and substantially financed by the Government. On consideration of material on record in respect of the previous 4 assessment years, namely 2004-2005 to 2009-2010, this Court accepted the contentions urged on behalf of the Revenue that the conditions stipulated in Section 10(23C)(iiiab) were not satisfied and held that benefit of exemption was not available to the assessee. The said order of this Court having been upheld by the Hon’ble Supreme Court, the instant appeal which also involves the very same question of law does not merit any consideration. Resultantly, this appeal fails and is accordingly dismissed. No costs. Sd/- JUDGE Sd/- JUDGE Cm/- "