Educational exemption for theological institutions upheld where objects were not confined to a particular religious community.

A society registered under section 12AA and conducting schools and theological education institutions was treated as carrying on education within section 2(15). Its objects were not confined to the benefit of any particular religious community, and the fact that its work was inspired by religious tenets or perceived by donors as promoting Christianity did not by itself attract section 13(1)(b). On the stated facts, the material did not justify denial of exemption, and the society remained eligible for section 11 relief because genuine educational activity, including theological education, is not excluded unless the objects or activities are shown to be restricted to a particular religious community.

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Issues: Whether the assessee society was entitled to exemption under section 11 of the Income-tax Act, 1961, and whether section 13(1)(b) of that Act was attracted on the facts of the case.

Analysis: The society was found to be registered under section 12AA and to be carrying on educational activities through schools and theological education institutions. The reasoning accepted that the stated objects in the memorandum were not confined to the benefit of any particular religious community and that the activities, including education in theology, amounted to education within the meaning of section 2(15). It was further held that merely because the activities were inspired by religious tenets or that donors perceived them as promoting Christianity did not establish that the society was serving a particular religious community. On the facts, the material did not justify invoking section 13(1)(b).

Conclusion: The assessee was held entitled to exemption under section 11, and section 13(1)(b) was held inapplicable.

Ratio Decidendi: An engaged in genuine educational activity, including theological education, remains eligible for exemption under section 11 unless its objects or activities are shown to be confined to the benefit of a particular religious community.

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