Mohan Lal Sukhadia University Vs ITO (Exemption) (ITAT Jodhpur)
Jodhpur ITAT: University Denied Section 10(23C)(iiiab) Exemption-Government Grants Were Only 36.47% Against Mandatory 50% Threshold
The Jodhpur ITAT dismissed the appeal of Mohan Lal Sukhadia University challenging denial of exemption under Section 10(23C)(iiiab).
The University had total receipts of ₹105.78 crore, including Government grants of ₹38.59 crore. Thus, Government funding constituted only 36.47% of the total receipts. The AO held that for the relevant year, exemption under Section 10(23C)(iiiab) required Government grants to constitute not less than 50% of the total receipts. Since the prescribed threshold was not met, the exemption was denied.
The matter also involved persistent non-compliance by the University. Despite repeated opportunities before the CIT(A), it failed to appear and the appeal was decided ex parte. The same conduct continued before the ITAT: although the appeal had been pending for nearly three years, the assessee repeatedly remained absent or sought adjournments. The Tribunal described this as a “recalcitrant attitude” and proceeded ex parte.
In the absence of any effective representation or material demonstrating that the conditions of Section 10(23C)(iiiab) had been satisfied, the ITAT upheld the CIT(A)’s order and dismissed the University’s appeal.
FULL TEXT OF THE ORDER OF ITAT JODHPUR
