Case Number: ITA 1598/DEL/2019
Appellant: Maharishi Markandeshwar University Trust, Ambala Cantt
Respondent: Pr. CIT, Central, Gurgaon
Assessment Year: 2013-14
Result: 2013-14
Case Filed On: 2019-02-27
Order Type: Final Tribunal Order
Date of Order: 2019-08-19
Pronounced On: 2019-08-19
The case involves Maharishi Markandeshwar University Trust (Appellant) and Pr. CIT, Central, Gurgaon (Respondent) concerning the assessment year 2013-14. The proceedings were carried out in the Income Tax Appellate Tribunal, Delhi Bench ‘G’. The judgment was delivered by Shri H. S. Sidhu, Judicial Member, and Dr. B. R. R. Kumar, Accountant Member.
The primary issues in this case were the alleged erroneous assessment order by the Principal CIT without satisfying the twin conditions of the assessment order being: (a) erroneous; and (b) prejudicial to the interests of Revenue.
The appellant argued that all the issues raised in the 263 show cause notice had already been examined in detail by the learned DCIT (CC) Karnal and the assessment had been completed by forming an opinion on all the issues. The appellant claimed that the Principal CIT erred in invoking revisionary powers under section 263 without providing documents to establish that the issues had already been examined.
The distribution of seats in MBBS and BDS courses was a major point of contention. The college management was found to be admitting Indian resident students in the NRI quota, violating the guidelines. However, it was noted that the foreign exchange received had been duly accounted for in the P&L account.
The Principal CIT alleged that the trust had reimbursed trustees for vehicle purchases, violating section 13 of the Act. However, it was clarified that the vehicles were used for trust purposes and the related expenses were duly accounted for in the books of the trust.
The Principal CIT claimed that the trust was paying salaries to ‘ghost teachers’ who were not actually working. The trust provided detailed evidence, including PAN, Form 16, qualifications, and attendance records, to prove the genuineness of these payments.
It was alleged that the trust employees were providing services at the residences of the trustees. The trust clarified that any such services were either personal expenses of the trustees or were necessary for the functioning of the trust.
The tribunal found that the Principal CIT’s allegations were based on suspicion and not supported by substantial evidence. The tribunal held that the assessment order was not erroneous or prejudicial to the interests of Revenue. Therefore, the tribunal set aside the revisionary order under section 263 of the Act.
The Income Tax Appellate Tribunal, Delhi Bench ‘G’ delivered the final judgment on 2019-08-19, ruling in favor of the appellant, Maharishi Markandeshwar University Trust. The tribunal concluded that the Principal CIT’s revisionary order under section 263 was unwarranted and set it aside.
ITA 1598/DEL/2019: Maharishi Markandeshwar University Trust vs Pr. CIT, Central, Gurgaon
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