As Mumbai University's (MU) revenue is more than its expenditure, the Income Tax (IT) Department has labelled Mumbai University as a private profiteering enterprise and has slapped a ₹50 crore notice.
Between 2006-2013, the tax amount that was assessed on Mumbai University is ₹48 crore. It has appointed an internal auditor who will take a standpoint on behalf of the University and look further into the matter.
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If MU loses the battle, it will forever come under the tax net. As stated in Times Of India, the IT department’s contention is that the University has an annual budget of ₹200 crore of which the state’s annual grant is merely ₹20 crore.
A University faculty said that taking under consideration the state's grant, it is only 10 per cent according to the income tax officers and that does not make them a public institution that can be exempted from tax.
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