VTU campus, Belagavi
The university’s accounts were frozen in 2012-13 after the I-T department raised a demand of Rs 250 crore, claiming that VTU had not secured tax exemption under Section 12(A) of the Income Tax Act, which allows certain institutions and non-governmental organisations to claim a full exemption from income tax. It had applied for tax exemption under Section 12(A) as early as 1999, according to VTU. The I-T department subsequently demanded Rs 250 crore in tax from VTU. Along with another Rs 250 crore belonging to the university, the fund now recovered is more than Rs 700 crore, according to VTU.
Bengaluru: After a 14-year legal battle with the income tax department , Visvesvaraya Technological University (VTU) has succeeded in recovering more than Rs 700 crore of its corpus fund that had been seized over “tax dues”. The university fought the matter through various legal forums. The breakthrough came after VTU officials, under the direction of vice-chancellor S Vidyashankar, revisited the old files relating to the tax dispute. The university then used the Right to Information (RTI) Act to obtain records from the I-T department that helped establish its claim for tax exemption. The dispute dates back to the early years of the university. However, the university did not have documents to establish this. The university challenged the demand, but the case went through the income tax tribunal and higher courts, including the Supreme Court . The university’s accounts were frozen during the proceedings, putting its finances under strain.
The RTI application filed by the university eventually yielded the 1999 entry register of the I-T department, providing documentary evidence of VTU’s earlier application for tax exemption.