Visvesvaraya Technological University v. ACIT

384 ITR 37Supreme Court of India2016#6450 most cited

What is Visvesvaraya Technological University v. ACIT authority for?

An institution is not considered substantially financed by the government if only a small percentage of its total income, such as 6%, comes from government grants. The court applies this to determine eligibility for exemptions under Section 10(23C)(iiiab).

18

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2018 to 2025.

Also referred to as

Visvesvaraya Technological University v. ACIT · section 10(23C)(iiiab) · section 10(23C) · substantial financing · government grants · educational exemption · income tax act · supreme court decision · charitable trust exemption

Also reported as

100 DTR 89

Sections most often in play

Section 143(3)Section 10(23C)Section 10(23C)(iiab)Section 10(23C)(iiiab)Section 10(23C)(vi)Section 11Section 144BSection 250(6)

Issues it is cited on

section 10(23c)(iiiab)section 10(23c)section 10total incomeindiapersoninterestnfacdocument

Judgments citing Visvesvaraya Technological University v. ACIT

Tamilnadu Co-Operative Union, Chennai vs. ACIT, Exemptions, Chennai

In the result the appeal of the assessee is partly allowed

ITA 59/CHNY/2025[2018-19]Status: DisposedITAT Chennai10 Dec 2025AY 2018-19

Bench: Hon’Ble George George K & Hon’Ble Inturi Rama Rao

For Appellant: Mr.Reddy Prakash, CAFor Respondent: Mr.Bipin C.N, CIT
Section 10Section 143(3)

…ion u/s. 10(23C)(viiiab) of the Income Tax Act, thus, the conditions laid down and the provisions of 10(23C)(iiiab) does not stand satisfied. The ratio of decision of Hon’ble Supreme Court in the case of Visvesvaraya Technological University Vs Asst.CIT(2016) 384 ITR 37 and reiterated again in 389 ITR 10 squarely applicable to the facts of the case. Thus, we do not find any merit in the ground of appeal filed by the appellant assessee. Accordingly, the grounds of nos.2 to 7 raised by the assessee stands dismissed. 7.0 The ground of appeal no.8 challenge the action of the Ld.AO in treating the entire gross receip…

Bihar State Educational Infrastructure Development Corp. Ltd, Patna vs. ACIT, Exemption Circle-1, Patna

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 344/PAT/2018[2012-13]Status: HeardITAT Patna12 Feb 2025AY 2012-13

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishra

Section 10Section 143(3)Section 250(6)

…आयकर अपीलीय अधिकरण पटना पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH AT KOLKATA [वर्चुअल कोटु] [Virtual Court] श्री संजय शमाु, न्याधयक सदस्य एवं श्री राकेश धमश्रा, लेखा सदस्य के समक्ष Before SHRI SONJOY SARMA, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. No.: 344/PAT/2018 Assessment Year: 2012-13 Bihar State Educational ACIT, Exemptions, Circle-1, Infrastructure Development Patna. Vs. Corp. Ltd. (Appellant) (Respondent) PAN: AAECB1859M Appearances: Assessee represented by : D.V. Pathy, Sr. Adv. Department represented by : Rinku Singh, CIT DR. Date of concluding the hearing :…

Dr. Babasaheb Ambedkar Open University, Ahmedabad vs. The CIT(Exemption), Ahmedabad

In the result, the appeal filed by the assessee is allowed

ITA 1068/AHD/2024[2014-15]Status: DisposedITAT Ahmedabad22 Oct 2024AY 2014-15

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.1068/Ahd/2024 िनधा"रण वष" /Assessment Year : 2014-15 Dr.Babasaheb Ambedkar Open The Cit(Exemption) बनाम/ University Ahmedabad V/S. “Jyotirmay Parisar” Dr.Babasaheb Amvedkar Open University Marg Sarkhej-Gandhinagar Highway Chharodi Ahmedabad – 382 481 (Gujarat) "थायी लेखा सं./Pan: Aabfd 2922 P अपीलाथ%/ (Appellant) &' यथ%/ (Respondent) Assessee By : Shri Manish Bhatt, Advocate Revenue By : Shri Sudhendu Das, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 14/10/2024 घोषणा की तारीख /Date Of Pronouncement: 22/10/2024 आदेश/O R D E R Per Makarand V. Mahadeokar, Am:

For Appellant: Shri Manish Bhatt, AdvocateFor Respondent: Shri Sudhendu Das, CIT-DR
Section 10Section 142(1)Section 143(2)Section 147Section 148Section 263

…luded that interest income should not be added to the total grants for the purposes of determining substantial financing. The CIT(E) referred to the Hon’ble Supreme Court ruling in Visvesvaraya Technological University v. Assistant Commissioner of Income Tax (384 ITR 37) to substantiate the view that the university was not substantially financed by the Government. In the Visvesvaraya case, the Hon’ble Supreme Court held that an institution receiving only 6% of its total income from Government grants could not be considered substantially financed. The CIT(E) set aside the AO’s assessment order dated 29/03/2022 and…

Iti Education Committe, Bengaluru vs. Income Tax Officer, Ward-1, Bengaluru

In the result, the appeal filed by the assessee is allowed for the statistical purposes

ITA 563/BANG/2024[2014-15]Status: DisposedITAT Bangalore19 Aug 2024AY 2014-15

Bench: Shri George George K & Shri Waseem Ahmedassessment Year : 2014-15

For Appellant: Shri Shambu Sharma, C.AFor Respondent: Ms. Matta Padma, Addl. CIT (DR)
Section 10Section 11Section 12A

…ssessee from the educational activity which suggest the activity of the assessee is for profit motive. In holding so, the AO has made reliance on the judgements of Hon’ble Supreme Court in the case of Visvesvaraya Technological University vs. ACIT reported in 384 ITR 37 (SC) and in the case of PA Inamdar & Ors vs. State of Maharashtra. 6.1 The learned CIT(A) while approving the finding of the AO has also made reliance on the judgements of Hon’ble Supreme court as referred by the AO and further made reliance on the judgment of Hon’ble . Page 4 of 8 Supreme Court in the case of Union of India vs Baba Banda Singh…

Himachal Pradesh Technical University, Hamirpur vs. CIT(E), Chandigarh

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 115/CHANDI/2020[-]Status: DisposedITAT Chandigarh28 Mar 2024

Bench: SHRI. AAKASH DEEP JAIN (Vice President), SHRI. VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Amitoz Singh Kamboj, CAFor Respondent: Shri Rohit Sharma, CIT DR
Section 10

…ct support the case of the assessee. Further reliance was placed on the decisions of Hon’ble Supreme Court in case of New Noble Educational Society Vs. CCIT(2022) 143 taxmann.com 276 and another decision in case of Visvescaraya Technological University (2016) 384 ITR 37. 16. Further, reference was drawn to the Hon’ble Jurisdictional Himachal Pradesh High Court decision in case of Maa Saraswati Educational Trust (2013) 353 ITR 312 wherein their Lordship have held that generating surplus and accumulation of income will not disqualify an institution for the benefits of Section 10(23C)(vi) of the Act. It was held tha…

DCIT (E)-1(1), Mumbai vs. B P Marine Academy, Navi Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 963/MUM/2019[2014-15]Status: DisposedITAT Mumbai13 Jul 2022AY 2014-15
Section 11Section 12ASection 2(15)

…ld AR also drew our attention to decision in the case of Shree Kamdar Education Trust foiled at page no 220 to 229 of the Paper book, Institute of Banking Personnel Selection [264 ITR 110(Bom)] and ViswesvarayaTechnologial 4 B.P. Marine Academy University [384 ITR 37 (SC)] in support of this ground. After considering the facts of the case in the light of various decisions , we are of the opinion that the activities of the Assessee are covered by last limb of Section 2(15) and are akin to the activities to Samudra Institute of Maritime Studies Trust [369 ITR 645(Bom)(2014)]. Not only that the notice for Cancell…

The Punyashlok Ahilyadevi Holkar Solapur University, Solapur vs. Assistant Commissioner of Income-Tax, Solapur

In the result, appeal of the assessee is dismissed

ITA 1544/PUN/2016[2011-12]Status: DisposedITAT Pune22 Jun 2022AY 2011-12

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकरअपीलसं. / Ita No.1544/Pun/2016 िनधा"रणवष" / Assessment Year : 2011-12 The Punyashlok Ahilyadevi Holkar The Assistant Solapur University Solapur, Vs Commissioner Of Income (Previously Known As Solapur Tax, Circle-2, Solapur. University), Solapur-Pune Highway, Kegaon, Solapur – 413 255. Pan: Aaals 0728 H Appellant/ Assessee Respondent /Revenue Assessee By Shri Sunil Ganoo – Ar Revenue By Shri S P Walimbe – Dr Date Of Hearing 04/05/2022 Date Of Pronouncement 22/06/2022 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Is An Appeal Filed By The Assessee Directed Against The Order Of Ld.Commissioner Of Income Tax(Appeals)-10, Pune, Dated 03.05.2016 For The A.Y. 2011-12. The Assessee Has Raised The Following Grounds Of Appeal: “1] In The Facts & Circumstances Of The Case & In Law, The Learned C.I.T.[A] Has Grossly Erred In Rejecting The Claim Of Exemption Made By The Appellant Assessee U/S10[23C][Iiiab] Of The I.T. Act 1961. The Various Reasons Given By The Learned Cit[A] For Rejecting The Claim Of Exemption Made By The Appellant Assessee U/S 10[23C] [Iiiab] Of The I.T.Act 1961 Being Legally Unsustainable & Devoid Of Merits The Same May Please Be Vacated & The Exemption As Claimed May Please Be Granted To The Appellant Assessee.

Section 10Section 143(3)

…arlier years the exemption has been allowed. 6. Ld.Departmental Representative (ld.DR) for the Revenue relied on the order of the lower authorities. Ld.DR also relied on the decision of Hon’ble SC in the case of Visvesvaraya Technological University v/s ACIT 384 ITR 37(SC) order dated 22/04/2016. ITA No.1544/PUN/2016 for A.Y. 2011-12 The Punyashlok Ahilyadevi Holkar Solapur University, Solapur Vs. ACIT, Circle-2, Solapur 7. Heard both the parties and perused the records. 7.1 It is a fact that the assessee university was formed by State Government under Maharashtra Universities Act 1994. Assessee claimed exempt…

M/S Step by Step Junior School Society, Amritsar vs. Commissioner of Income Tax (Exemption), Chandigarh

ITA 596/ASR/2016[2015-16]Status: DisposedITAT Amritsar16 Aug 2021AY 2015-16

Bench: : Shri Laliet Kumar & Dr. Mitha Lal Meena

Section 10

…profit does not necessarily mean it exists for profit and an overall view in year in question object was to make profit as opposed to educating persons to be seen. Further, the Hon'ble Apex Court in the case of Visvesvaraya Technological University vs. ACIT, 384 ITR 37 (SC), whereby it was held that there could be no manner of doubt that the surplus accumulated over the years had been ploughed back for educational purposes and in the said case the Hon'ble Apex Court reminded the conditions of principle laid down in Queen's Education Society vs. CIT [2015] 372 ITR 699 (SC) which for the sake of brevity and conven…

The Sardar Partapsingh Education Society, Mumbai vs. The CIT (Exemptions), Mumbai

In the result, appeal of the assessee is allowed

ITA 487/MUM/2021[2019-20]Status: DisposedITAT Mumbai11 Jun 2021AY 2019-20
Section 10

…se of PKD Trust vs. ITO reported in 311 CTR 657. c) Hon’ble Supreme Court in the case of Queens Educational Society vs. CIT reported in 372 ITR 699 (SC) d) Decision of the Hon’ble Supreme Court in the case of Vishvesvaraya Tech University vs. ACIT reported in 384 ITR 37. e) Decision of Hon’ble Supreme Court in the case of CCIT vs. St. Peters Educational Society reported in 385 ITR 66. 8 The Sardar Partapsingh Education Society 3.1. Moreover, the Hon’ble Supreme Court in the case of American Hotel and Lodging Association Educational Institute vs. CBDT reported in 301 ITR 86 held that on the issue of deciding whet…

Rajasthan Technical University, Kota vs. Commissioner of Income Tax, Exemptions, Jaipur

In the result, the appeal of the assessee is dismissed

ITA 541/JPR/2019[2017-18]Status: DisposedITAT Jaipur11 Aug 2020AY 2017-18
For Appellant: Miss. Dakshayani Pandey (Adv.)&For Respondent: Shri Amrish Bedi (CIT)
Section 10Section 12A

…illegible for exemption U/s 10(23C)(iiiab) of the Income Tax Act. But after notification by CBDT with reference to rule 2BBB dated 12.12.2014 and with reference to decision of Hon’ble Supreme Court in case of Visvesvaraya Technological University vs. ACIT 384 ITR 37 it was advised that for abundant caution, the University should apply for registration U/s 12AA of the IT Act with effect from its date of incorporation i.e. 31.12.2005. Accordingly, the assessee submitted an application in form 10A for registration U/s 12A on 26.05.2017 and sought registration with retrospective from 31.12.2005. The ld. CIT(E)…

B P Marine Academy, Mumbai vs. Dy CIT (E) 1(1), Mumbai

In the result, ground no 6 is allowed in favour of the Assessee

ITA 174/MUM/2019[2014-15]Status: DisposedITAT Mumbai06 Sept 2019AY 2014-15

Bench: Shri Sandeep Gosain & Shri Rajesh Kumarassessment Year : 2014-15

For Appellant: Shri Bhupendra Shah, ARFor Respondent: Shri Manoj Kumar Singh, DR
Section 11Section 11(1)Section 13(3)Section 143(1)Section 234Section 234ASection 271(1)(c)Section 80G

…219 of Paper book). The ld AR also drew our attention to decision in the case of Shree Kamdar Education Trust foiled at page no 220 to 229 of the Paper book, Institute of Banking Personnel Selection [264 ITR 110(Bom)] and Viswesvaraya Technologial University [384 ITR 37 (SC)] in support of this ground. After considering the facts of the case in the light of various decisions , we are of the opinion that the activities of the Assessee are covered by last limb of Section 2(15) and are akin to the activities to Samudra Institute of Maritime Studies Trust [369 ITR 645(Bom)(2014)]. Not only that the notice for Cancell…

Assistant Commissioner of Income-Tax, Bangalore vs. M/S.Children'S Education Society, Bangalore

In the result, the appeal of the assessee is allowed in the terms indicated above and the appeal of the revenue for A

ITA 2165/BANG/2016[2011-12]Status: DisposedITAT Bangalore28 Aug 2019AY 2011-12

Bench: Shri A. K. Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri V. Srinivasan, AdvocateFor Respondent: Shri Pradeep Kumar, CIT DR
Section 10Section 11Section 69

…lus received is reasonable and having regard to the extent of corpus at the beginning of the year, as against 10 to 15% which is held to be reasonable by the Hon'ble Karnataka High Court in the case of VISVESVARAYA TECHNOLOGICAL UNIVERSITY V. ACIT reported in 100 DTR 89, in the context of section 10[23C][iiiab] of the Act, which indicates that the educational activity is not tainted with commercial activity as alleged by the learned A.O. and at any rate notwithstanding even in extreme case, if it is to be assumed that the contributions received are in violation of the Act, they are only in respect of some institu…

Assistant Commissioner of Income-Tax, Bangalore vs. M/S.Children'S Education Society, Bangalore

In the result, the appeal of the assessee is allowed in the terms indicated above and the appeal of the revenue for A

ITA 2164/BANG/2016[2007-2008]Status: DisposedITAT Bangalore28 Aug 2019AY 2007-2008

Bench: Shri A. K. Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri V. Srinivasan, AdvocateFor Respondent: Shri Pradeep Kumar, CIT DR
Section 10Section 11Section 69

…lus received is reasonable and having regard to the extent of corpus at the beginning of the year, as against 10 to 15% which is held to be reasonable by the Hon'ble Karnataka High Court in the case of VISVESVARAYA TECHNOLOGICAL UNIVERSITY V. ACIT reported in 100 DTR 89, in the context of section 10[23C][iiiab] of the Act, which indicates that the educational activity is not tainted with commercial activity as alleged by the learned A.O. and at any rate notwithstanding even in extreme case, if it is to be assumed that the contributions received are in violation of the Act, they are only in respect of some institu…

M/S.Children'S Education Society, Bangalore vs. Deputy Director of Income-Tax, Bangalore

In the result, the appeal of the assessee is allowed in the terms indicated above and the appeal of the revenue for A

ITA 1914/BANG/2016[2011-12]Status: DisposedITAT Bangalore28 Aug 2019AY 2011-12

Bench: Shri A. K. Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri V. Srinivasan, AdvocateFor Respondent: Shri Pradeep Kumar, CIT DR
Section 10Section 11Section 69

…lus received is reasonable and having regard to the extent of corpus at the beginning of the year, as against 10 to 15% which is held to be reasonable by the Hon'ble Karnataka High Court in the case of VISVESVARAYA TECHNOLOGICAL UNIVERSITY V. ACIT reported in 100 DTR 89, in the context of section 10[23C][iiiab] of the Act, which indicates that the educational activity is not tainted with commercial activity as alleged by the learned A.O. and at any rate notwithstanding even in extreme case, if it is to be assumed that the contributions received are in violation of the Act, they are only in respect of some institu…

Deputy Commissioner of Income Tax (Exemption), Circle-1, Bengaluru vs. M/S. Mahatma Gandhi Vidyapeetha Trust, Bengaluru

In the result, appeal of the Revenue is dismissed while cross objection by the Assessee is allowed

ITA 2707/BANG/2017[2012-13]Status: DisposedITAT Bangalore15 Feb 2019AY 2012-13

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

For Appellant: Shri S Sukumar, AdvocateFor Respondent: Shri Pradeep Kumar, CIT
Section 11Section 12ASection 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER ITA Nos.2707 to 2709/Bang/2017 Assessment year : 2012-13 to 2014-15 The Dy. Commissioner of Income-tax, M/s Mahatma Gandhi Vidyapeetha (Exemptions), Trust, Savige Malleswara Ghills, Circle-1, Kanakapura Road, Bengaluru. Kumaraswamy Layout, Bengaluru-560 078. PAN : AAATM 2020 Q. APPELLANT RESPONDENT CO Nos.40 to 42/Bang/2018 (By Assessee) Assessment year : 2012-13 to 2014-15 M/s Mahatma Gandhi Vidyapeetha Trust, The Dy. Commissioner of Income- Savige Malleswara Ghills,…

M/S Rajiv Gandhi Proudyogik Vishwavidhalya, Hosangabad vs. DCIT CPC, Bengaluru

In the result, the appeal of the assessee in I

ITA 325/IND/2018[15-16]Status: DisposedITAT Indore29 May 2018

Bench: Shri Kul Bharat & Shri Manish Boradआ.अ.सं /.I.T.A. No. 324 & 325/Ind/2018 "नधा"रणवष" / Assessment Years: 2014-15 & 2015-16 M/S. Rajiv Gandhi Proudyogiki Vs. Dcit, Vishwavidyalaya, Cpc, Bhopal Bangaluru

Section 10Section 139Section 143(1)Section 35

…gure may be adopted under the facts and circumstances available on record.” 9.7 It is also pertinent to mention here that the Hon’ble Supreme Court in the case of Visvesvaraya Technological University v. Assistant Commissioner of Income-tax reported in [2016] 384 ITR 37 (SC) has categorically held that to consider any university or institution as wholly or substantially financed by Government as 33 M/s.Rajiv Gandhi Proudyogiki Vishwavidyalaya,Bhopal. contemplated under section 10(23C)(iiiab) of the Act, funds received from Government must be direct grants/contributions from governmental source and not fees collec…

M/S Rajiv Gandhi Proudyogik Vishwavidhalya, Hosangabad vs. DCIT CPC, Bengaluru

In the result, the appeal of the assessee in I

ITA 324/IND/2018[14-15]Status: DisposedITAT Indore29 May 2018

Bench: Shri Kul Bharat & Shri Manish Boradआ.अ.सं /.I.T.A. No. 324 & 325/Ind/2018 "नधा"रणवष" / Assessment Years: 2014-15 & 2015-16 M/S. Rajiv Gandhi Proudyogiki Vs. Dcit, Vishwavidyalaya, Cpc, Bhopal Bangaluru

Section 10Section 139Section 143(1)Section 35

…gure may be adopted under the facts and circumstances available on record.” 9.7 It is also pertinent to mention here that the Hon’ble Supreme Court in the case of Visvesvaraya Technological University v. Assistant Commissioner of Income-tax reported in [2016] 384 ITR 37 (SC) has categorically held that to consider any university or institution as wholly or substantially financed by Government as 33 M/s.Rajiv Gandhi Proudyogiki Vishwavidyalaya,Bhopal. contemplated under section 10(23C)(iiiab) of the Act, funds received from Government must be direct grants/contributions from governmental source and not fees collec…

Iti Education Committee, Bangalore vs. Income-Tax Officer(Exemption), Bangalore

In the result, the appeal filed by the assessee is allowed

ITA 425/BANG/2017[2012-13]Status: DisposedITAT Bangalore31 Jan 2018AY 2012-13

Bench: Shri Sunil Kumar Yadav & Shri Inturi Rama Raom/S.Iti Education Committee, Vidyamandir, Dooravaninagar, Bengaluru. Pan : Aaaai0748L … Appellant Vs. The Income-Tax Officer (Exemptions), Ward - 1, Bengaluru … Respondent Appellant By : Shri H Sambhu Sharma, C.A Respondent By : Shri Pradeep Kumar, Acit(Dr)

For Appellant: Shri H Sambhu Sharma, C.AFor Respondent: Shri Pradeep Kumar, ACIT(DR)
Section 10Section 11Section 11(1)(a)Section 143(3)

…ble Karnataka High Court in the case of Visvesvaraya Technological University Vs. ACIT (2014) 362 ITR 279 (Kar) relied upon by the Assessing Officer came to be over-ruled by the Hon’ble Apex Court in the case of Visvesvaraya Technological University Vs. ACIT (384 ITR 37). He further submitted that carry forward of excess income over expenditure should be calculated on the gross receipts not on the net receipts and reliance was placed on the decision of the co-ordinate bench of the Tribunal in the following cases:- i. DCIT, Bangalore Vs. M/s Peoples Education Society (9-6-2017) ii. The Capuchin Friar Services Soci…

Visvesvaraya Technological University v. ACIT (384 ITR 37) — Cited in 18 Judgments | BharatTax