Case Law Details
Brief of the Case
ITAT Mumbai held In the case of ACIT vs. Institute of Chemical Technology University of Mumbai that the consultancy work done by the assessee – University through its professors, in which part income is held by university and the rest lying with respective professors, is not in any way relatable to the aims and object for which the assessee was established. Therefore the assessee is not entitled for any exemption under the provisions of the Act. Also held that if the Professors of the university are giving consultancy / advice work on regular basis, that it will be presumed that the university is providing these advices itself.
Facts of the Case
The assessee is an Institute of Chemical Technology (ICT) Mumbai, was established as a Department of Chemical Technology on 1st October, 1993 by the University of Mumbai. Subsequently, the assessee was declared as an autonomous Institute and a deemed University by the Central Government in the year 2008. The main aims and object of the Institute are to provide instructions, study, teaching, training and research in various branches of Science and Technology. Though it is the case of the assessee that by virtue of the University Circular bearing No.508 of 1985 dated 7th September, 1985, the revised terms and conditions under which teachers / professors are permitted to undertake the consultation work. The Assessing Officer, after relying upon the provisions of section 2(15) r.w.s. 11(4A), submits that the income accrued to the assessee on account of consultancy work given by the Professors is required to be taxed separately and is not an exempt income within the meaning of law The CIT (A) has exempted the income generated by the assessee for rendering the consultancy services through its professors to various organizations under the provisions of law
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