GANPAT UNIVERSITY Vs. ARVIND SHANKAR

JUDGEMENT

(1.) The petitioner has challenged an order dated 28.12.2011 passed by the respondent-Chief Commissioner of Income Tax under which, he rejected the petitioner's application for approval under section 10(23C) of the Income Tax Act, 1961 ['the Act' for short].

(2.) Brief facts are as under:

(3.) On 27.05.2011, the petitioner filed an application seeking exemption under section 10(23C)(vi) of the Act under the prescribed format. The Chief Commissioner-the competent authority had some prima facie doubt about granting such application. He, therefore, issued a letter dated 30.11.2011 seeking clarification on certain points from the petitioner. He conveyed to the petitioner that the accounts of the University showed profit of extremely high percentage which was 80.35%, 67.37% and 58.91% for assessment years 2008-09, 200-10 and 2010-11 respectively. In section 10 (23C)(vi) of the Act, the emphasis is on the institution existing solely for educational purposes and not for the purposes of profit. This condition was therefore not satisfied. He called upon the petitioner to provide the details of fees charged to the students, and copies of income tax returns for the assessment year 2009-10 to 2011-12. He also confronted the petitioner with the non-filing of the audited accounts which was a requirement as per 10th proviso to section 10(23C) of the Act and asked to explain why on such ground also the application should not be rejected.