Appeals filed by the revenue the  issue involved is whether the amount collected by the assessee as donation from the students was within the permissible limit of 15% or whether the same was done with the profit motive to suggest that the assessee is running the related educational institute on commercial line.   Court followed  the order in assesees, own case in ITA No 59 of 2015  dt 11-09 2017   for the assessment years 2010-11 and 2011-12 and involving the same issue  .  Relevant portion of the order dated 11.09.2017 is extracted hereunder:-

“9. The Tribunal found that the assessee – trust is more than 100 years old. It runs more than 60 educational institutions imparting education to more than 70000 students in various fields. It was granted registration earlier under Section 12A. The Commissioner of Income Tax, however, relied on certain amounts styled as ‘donations collected from students’. He held that this was against the assurance to admit them to these educational courses. Collection of such donations or moneys, therefore, attracts the provisions under the Capitation Fee Act. The Tribunal found that there is no merit in this finding of the Commissioner. The assessee pointed out that as against 70 management quota seats in the educational institutions, the assessee collected donation from nine students. The sum of the donation is within the prescribed limit and the Government of Maharashtra has not at all prohibited the receipt of the same. In paragraphs 8.3 and 8.4 of the order of the Tribunal, the details of such students and donations collected from them have been referred. Then, the other objection of the Commissioner was that the assessee is accumulating huge surplus year after year. However, the Tribunal found that this surplus is within the permissible limit of 15% and how that is worked out is apparent from paragraph 8.5 of the Tribunal’s order. Thus, the Tribunal found that the accumulation of surplus is within the permissible limit. It cannot be said that the assessee is running educational institution on commercial lines.”

Accordingly the appeal of the revenue is dismissed .  (ITA Nos.1127 to 1133/PN/2011  dt 19-10 -2016 ) ( ITA Nos. 1061 of 2017 /1062 of 2017 /2017 of 2017 /283 of 2018/ 384 of 2018/526 of 2018 /762 of 2018 dt 20 -01 2020  ( AY.2003 -04 , 2009 -10)