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By Vijay Kumar

Income Tax

Charitable institution collecting capitation fee not eligible for exemption: ITAT

A private Engineering College run by a trust registered as a charitable institution is collecting capitation fees – Is the Trust eligible for IT exemptions. That is the question before the ITAT.

The assessee-society is running educational institutions and hostel in the States of Andhra Pradesh and Maharashtra. For the asst.year 2003-04, the assessee filed return of income on 3-12-2003 claiming exemption under section 11 of the Income Tax Act.

Is the assessee a Charitable Institution?

The Tribunal noted that it is obvious that “education” is included in the charitable purpose. Admittedly, the assessee society is running educational institutions. So the answer is ‘YES”

When the assessee collects money over and above the fees prescribed by the Government, whether it constitutes a charitable institution or not.

it is a clear case of sale of education by the assessee society. In our opinion as such, the assessee cannot be considered as a charitable institution under S.2(15) of the Income Tax Act. Therefore, the assessee is not eligible for exemption under S. 11 of the Income-tax Act.

CESTAT

Aggrieved Revenue - Tribunal says it does not understand the purpose for which Revenue filed application - ROM application filed beyond six months, hence dismissed - But, then who did really file the ROA application?

The Revenue had then filed a Miscellaneous Application seeking rectification of the July 2007 order of the Tribunal contending that the respondent had not signed the ROA application inasmuch as the signature on the application did not match the one available on their records. The Revenue adduced their submission with a report from the Government Examiner of Questioned Documents, Hyderabad. This application was dismissed by the Tribunal in November 2007 on the ground that the Revenue was not challenging the application for Restoration of Appeal on the ground of disputed signature of the applicant.

Service Tax

Commissioner(A) reducing penalty in terms of Section 80 of Finance Act, 1994 not improper - Following judicial discipline does not mean re-writing of the statute : Tribunal

In the present case, the Revenue filed an appeal along with an application for condonation of delay of 20 days. The Bench observed that this authorization does not bear any date & hence it is not possible to ascertain whether the delay is twenty days or more. Anyways, the COD application was allowed as the matter lay in a very short compass.

See our columns Tomorrow for the judgements