Mewar University Vs ITO (Exemption) (ITAT Jodhpur)
Summary: The Jodhpur Bench of the Income Tax Appellate Tribunal allowed the appeal filed by Mewar University for Assessment Year 2017-18 and directed deletion of an addition of ₹26,50,000 representing corpus contributions. The dispute arose because the University had claimed exemption under section 10(23C)(vi), while the Assessing Officer and CIT(A) considered the specific exemption contemplated under section 11(1)(d) unavailable under that provision for the relevant year.
Mewar University, Chittorgarh, was constituted under the Mewar University Act, 2009 enacted by the Rajasthan State Legislature. It was registered under section 12AA and also had approval under section 10(23C)(vi). It filed its return for AY 2017-18 declaring nil income. Assessment under section 143(3) was completed on 30.12.2019 determining total income at ₹15,61,58,900 after various additions and disallowances. The CIT(A) granted relief on the other substantive issues, but sustained the addition relating to the corpus contribution of ₹26,50,000.
The disputed amount consisted of two donations: ₹1,50,000 received from Shri Ramesh Chandra Baser through NEFT and ₹25,00,000 received from Mundra International through cheque. Confirmations from the donors were furnished and specifically stated that the contributions were towards the corpus of the University.
The Assessing Officer took the view that because the assessee had claimed exemption under section 10(23C)(vi), rather than under section 11, there was no question of allowing the corpus contribution as exempt under section 11(1)(d). The ₹26,50,000 was therefore treated as a voluntary contribution and included in total receipts. The CIT(A) affirmed this reasoning, observing that while voluntary contributions received with a specific corpus direction were specifically dealt with under sections 11 and 12, no corresponding express provision existed in section 10(23C)(vi) for the assessment year under consideration.
