TaxTMI 
TaxTMI 
2012 (11) TMI 941
X X X X Extracts X X X X
X X X X Extracts X X X X
....djudication viz., (i) whether the CIT(A) erred in holding that the assessee is eligible for exempting u/s 10(23C)(iiiad) of the Income-tax Act, 1961 [hereinafter referred to as "the Act"] without appreciating the fact that the society is not an university or educational institution existing solely for educational purposes and (ii) the CIT(A) has erred in not giving a finding that disallowance made by the AO u/s 11(1)(a) on account of application of income outside India. 3. Let us take up the first issue relating to eligibility for exemption u/s 10(23C)(iiiad) of the Act. The relevant grounds read as under: "1. The learned CIT(A) erred in holding that the assessee is eligible for exemption u/s 10(23C)(iiiad) without appreciating the fa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....it could be held that the institution is existing for educational purposes and not for the purpose of profit. The AO verified the original Trust Deed dated 2-4-1990 in the light of his above observation. According to him, a simple verification of the Trust Deed indicated that the assessee's objectives are not totally for education purpose and the assessee had multiple objectives like promotion of rural development, undertaking social service and charitable activities to alleviate poverty and distress all over the country especially in rural area etc. According to the AO, he assessee is not solely existing for educational purpose and therefore the exemption claimed by the assessee u/s 10(23C)(iiiad) was disallowed. 4. Aggrieved, assessee ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ctivities were carried out, it must be regarded as existing solely for the purpose of educational irrespective of the fact that memorandum of association of the Trust contained varied objects. The Hon'ble Bombay High Court in the case of Jaypee Institute of Information Technology Society vs. DGIT (Exemptions) in held that exemption can be allowed despite the trust having varied objectives which however, were held incidental to the main objective of education. After careful consideration of the facts of the case I am convinced that the appellant trust is eligible for exemption u/s 10(23C)(iiiad) and accordingly the AO is directed to allow exemption 10(23C)(iiiad) of the IT Act 1961 to the appellant and the appeal is allowed. IN view of th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lly no activity other than that of imparting training has been carried out. Regarding the normal schooling or normal conduct of classes, decision of the Hon'ble Delhi High Court in the case of Delhi Music Society vs. Director General of Income-tax (2012) 246 CTR 327(Del) was relied. In that decision, it has been held that the fact of not conducting any examination or awarding any degrees of its own is not decisive to decide whether an institution is an educational institution or not. If the assessee meets the requirement of imparting education which can be training of any nature, and if only such activity is carried on, the institution should be held eligible for deduction u/s 10(23C)(iiiad) of the Act. Hence, in view of the above decision,....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the assessee is carrying on only the activity of education and training, even though other incidental objectives are mentioned in the trust deed. The decisions of the Hon'ble Bombay High Court in the cases of Vanita Vishram Trust (supra) and Jaypee Institute of Information Technology Society (supra) and the decision of the Hon'ble Delhi High Court in the case of Delhi Music Society (supra) support the claim of the assessee. The decision in the case of Saurashtra Education Foundation (supra) relied on by the learned Departmental Representative cannot advance the case of the revenue in view of the subsequent decision of the Hon'ble Delhi High Court in the case of Delhi Music Society (supra) wherein it was held that if the assessee meets t....