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TaxTMI 
TaxTMI 
TaxTMI 
2013 (11) TMI 1332
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....ls) further erred in law and in facts in confirming the action of the learned A.O. in assessing the total income of the appellant at Rs.1,68,49,629 as against the returned income of Rs,62,523. 3. That the learned CIT (Appeals) further erred in law and in facts in confirming the action of the learned A.O. in holding that the activities of the appellant were of a nature which could not be treated as a charitable purpose." 2. Brief facts of the case are that it is noted by the A.O. in the assessment order that the return of income declaring total income of R.62,523/- was filed by the assessee on 29.09.2009. In the course of scrutiny assessment proceeding, the A.O. asked the assessee to file a note of activities of the trust and regarding the assessee's entitlement to exemption u/s 11 of the Income tax Act, 1961 in view of the amended definition of Section 2(15). Reply was submitted by the assessee before the A.O. and the relevant portion has been reproduced by the A.O. in the assessment order. As per the reply, it was submitted by the assessee that the assessee has conducted various courses during the year under consideration and submitted a list of more tha....
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....the copy of Memorandum and Rules & Regulations of the assessee society which was registered under the Societies Registration Ac 1860 and Bombay Public Trust Act 1950. He drawn our attention to clause (d) of the objects clause on page 3 of the paper book as per which one object of the assessee society is to make efforts towards the promotion and development of management in Gujarat, to promote education in practice of management and related subjects through meeting, discussion, lectures, research projects, seminars, conference, programmes of studies etc. He submitted that his goes to show that the entire activity of the assessee is only to promote education and therefore, the proviso to Section 2(15) is not applicable which is applicable only to those activities which are in relation to the object of general public utility and not the main three objects i.e. relief to poor, education and medical relief. He also submitted that all through since the formation of the assessee in the year 1967, the assessee was granted exemption u/s 11. He submitted that the copy of the assessment order in assessee's own case for various assessment years beginning from assessment years 1995-96 to 2008-0....
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....tter should go back to the file of Ld. CIT(A) for afresh decision because no decision has been given by him because of non appearance of the assessee before him, we are of the considered opinion that in the facts of the present case, the limited dispute is as to whether the activity of the assessee is in the field of education or not and the facts are not in dispute. Reliance has been placed by both the sides on several judgements of Hon'ble Apex Court as well as the jurisdictional High court and hence, we feel that sending the matter back to the file of Ld. CIT(A) will be a futile exercise and hence, we proceed to decide the appeal of the assessee on merit after considering the submissions of both sides. 6. We find that in the present case, the only dispute is that as to whether the activity of the assessee, which include continuing education of diploma certificate programme, management development programme, public talk and seminars and workshop and conferences can be said to be education which is included in Section 2(15) of the Income tax Act, 1961 or it can be covered in the 4th object of Section 2(15) i.e. the object of general public utility. In this regard, we find that th....
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....ledge of hidden mysteries of life, the Hon'ble Supreme Court had indicated that the word education is not used in a loose sense so as to include acquisition of such knowledge. In the present case, thus is not the objection of the revenue that the activity of the present assessee is like of an activity which are noted by Hon'ble Apex Court such as traveler gaining knowledge, victim of swindler and thieves becoming wiser and visitor of night club adding to the knowledge of hidden mysteries of life etc. It is also observed by Hon'ble Gujarat High court that the word school also means instruction or education. In the present case, this is not the case that by way of activity of the present assessee, the assessee is not engaged in the activity of instruction of education of the people/persons who are attending the programmes. In fact the assessee is granting diploma also and as has been noted by the A.O. himself on page 11 of the assessment order, more than 80% of the receipts are on account of continuing education, diploma and certificate programmes. All the four activities noted by the A.O. on this page of the assessment order are not like those activities which were noted by Hon'ble ....
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....venue because in the present case, the claim of the assessee is not this that the assessee is an educational institution and hence, eligible for exemption u/s 10(22) or 10(23)C. Because the claim of the assessee is regarding exemption u/s 11 and for this claim, it was held by Hon'ble Gujarat High court in that case also that the income would be exempt u/s 11(1) to the extent it would apply for its objects hence, in our considered opinion, this judgement is of no help to the revenue in the present case. - The 2nd judgement of Hon'ble Gujarat High Court on which reliance has been placed by Ld. D.R. is the judgement rendered in the case of Saurashtra Education Foundation v. CIT as reported in 141 Taxman 26 (Guj.). In that case, the assessee conducted various classes for students of class 10, 11 & 12th and for C.A. entrance examination. The assessee also held refresher courses for teachers teaching in various schools. The assessee also held lectures, meetings, exhibitions and relevant educational topics. In view of these activities, the assessee claimed exemption u/s 10(22) of the Income tax Act, 1961. The relevant para of this judgement of Hon'ble Gujarat High Court is para 8 which i....
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.... cooperative education and industrial projects and centers as mentioned in the list of its activities. It was further observed by Hon'ble Gujarat High Court that it was in the context of these activities, it was held in that case, that the assessee was existing for educational purpose. In our considered opinion, this judgement of Hon'ble Gujarat High Court cited by the Ld. D.R. is in fact supporting the case of he assessee and not the revenue. It was observed by Hon'ble Gujarat High court in that case that the as per the earlier judgement of the same court, it was held that education is not confined to teaching of young but the court did not draw away with the test of systematic instruction and training evolved by the Hon'ble Apex Court. In the present case also, the activity of the assessee fulfills the satisfaction of this test of systematic instruction and training evolved by Hon'ble Apex Court. It could not be established by the revenue that the programmes undertaken by the assessee were not involving systematic education or training and hence, we hold that in our considered opinion, this judgement of Hon'ble Gujarat High court is also not rendering any help to the revenue. 8.....