TaxTMI 
TaxTMI 
2004 (5) TMI 532
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....cer as well as the Commissioner of Income-tax (Appeals) ought to have appreciated that the provisions of section 11(4A) of the Income-tax Act, 1961 are (sic) applicable to your petitioners and are entitled to the benefit of the relief provided by the said provisions." 3. We have heard the rival submissions in the light of the material placed before us and precedents relied upon. The assessee is an association of per sons. As per the memorandum of association, the assessee-society was constituted for the dissemination of knowledge and education and the pro motion of understanding between the people of India and the people of the United States of America. Its aims and objectives includes, inter alia, the true appreciation of the ways of life, cultures and languages of the peo ple of these countries and the promotion of enduring goodwill, friendship and co-operation in all spheres of life, thought and activity between the people of these countries. 4. In furtherance of the aforesaid aims and objectives, the society may undertake among others, the following activities in particular : "(a) the establishment of Information Exchange Centre ; (b) the organization of....
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....the culture and the language of the American people. It was found that the courses were conducted purely in professional manner with high charges at five-star hotels. From this it was concluded that only elite class can attend these courses. As such, it was held that the object of the society is not falling within the ambit of "general public utility" class. It was also noticed that for a number of courses the assessee charged a percentage for earning large profits, which was spent for receiving, entertaining American ambassadors, councillors and other such people. The income from educational programmes amounted to in the vicinity of Rs. 78 lakhs. 7. The other sources of income comprised Rs. 20 lakhs from sponsorship and interest income. This has got no link with the objects or the activities of the society. On this factual backdrop the Assessing Officer held that the object of the assessee-society cannot be construed to be the object of general public utility ; as such the benefit claimed under section 11 of the Income-tax Act, 1961, was denied. Further, in regard to the various courses conducted by the assessee-society, it was held to be business activity. The case was examine....
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....aritable in its popular signification as not tending to give relief to the poor or for advancement of education or medical relief, it would still be included in the expression "charitable purpose" if it advances an object of general public utility. The law recognises no purpose as charitable unless it is of a public character. That is to say, a purpose must, in order to be charitable, be directed to the benefit of the community or a section of the community. The sense in which the word "education" has been used in section 2(15) is the systematic instruction, schooling or training given to the young in preparation for the work of life. It also connotes the whole course of scholastic instruction which a person has received. Education, in order to be charitable, must relate to the public. In the case of Ecumenical Christian Centre v. CIT [1983] 139 ITR 226 (Karn), it was held that the promotion of search for truth and diffusion of useful knowledge, promotion of conferences and discussions, the foundation and maintenance of conference centres and reading rooms and publication of journals and books for general use among the members and others are objects directly relating to education. ....
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....Revenue that the educational programmes conducted by the society are within the reach of elite class is of no consequence. Relief to the poor cannot be construed conjointly with education. Education also comes within the ambit of charitable purpose. In England the term "charity" was defined in the statute of Elizabeth (strictly in the fashion, style and language as used in the original statute) as : "relief of aged, impotent and poor people . . . ." As per literal interpretation of the statute, in order to avail of the benefit of charity one must qualify all the conditions laid down, i.e., he should be aged, impotent and poor. But this interpretation is far from pragmatism. The words aged, impotent and poor ought not to be construed conjunctively, so as to deny benefit separately to aged people, impotent people and poor people. This aspect was considered in the case of In re Robinson ; Davis v. Robinson [1950] 2 All ER 1148 (Ch D). It was held in the said case that the words "aged, impotent and poor" in the statute of Elizabeth should be read disjunctively so that aged people need not also be poor to come within the ambit purview, and scope of the statute. Likewise, to enable the b....