| The Tax Publishers2019 TaxPub(DT) 6569 (Del-Trib) INCOME TAX ACT, 1961
Section 263
Keeping in view the facts that AO had duly examined the issue and there was nothing on record regarding receipt of any unaccounted monies, and as per the MCI Guidelines which allow the wards of the NRIs to be admitted under the NRI quota and keeping in view the fact, that anything prejudicial to the interest of Revenue had been brought by the Pr. CIT, no action under section 263 was, therefore, called for on this ground.
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Revision under section 263 - Erroneous and prejudicial order - Admission of students to NRI quota - Lack of enquiry
The examination of the parents under section 131 showed that trust was admitting students in NRI quota without any NRI background of the students or their family members. The Pr. CIT in the order passed under section 263 held that, from the field inquiries it had been gathered about the fact that substantial amounts have been received by the assessee-trust from the parents of students seeking admission in particular quotas in these colleges mainly in MBBS/MD/Dental Branches. The assessee-trust was violating the provisions of Medical Council of India, Delhi and the notification of Haryana Government No. 16/14/2014-6HB-TV, dated 30-5-2014 in this regard. Pr. CIT held that since the guidelines given by the State have been violated, and the AO had not obtained the list of students during the assessments nor conducted proper enquiries about violation of MCI Guidelines, the assessment order was liable to be set aside on this ground.Held: Complete details pertaining to NRI quota were filed before the AO and PCIT which consists of FIRC, affidavit of parents, students and norms of MCI. When the question was posed to the revenue as well as the AR regarding any adverse finding by any regulatory authority or any sanctions levied by MCI, the reply from both the parties was negative. Similarly, there were no violations of RBI and the foreign currency received from the students admitted in NRI quota had been duly accounted in the P&L account. Keeping in view the facts that the AO had duly examined the issue and there was nothing on record regarding receipt of any unaccounted monies, and as per the MCI guidelines which allow the wards of the NRIs to be admitted under the NRI quota and keeping in view the fact, that anything prejudicial to the interest of Revenue had been brought by the Pr. CIT, no action under section 263 was, therefore, called for on this ground.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 263
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