2014 (4) TMI 472

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....t executed on 02-07-2008 to establish educational institution. In furtherance of the object of the trust, the assessee has established an institution to provide study centre of Karnataka Open University. According to the ld. representative, the assessee was an authorized centre of Karnataka Open University to admit students and provide education as per the curriculum of Karnataka Open University. According to the ld.representative, the Commissioner of Income-tax misunderstanding the fact simply says that the assessee was distributing study material and provides local examination centre facility for the examination conducted by Karnataka Open University. According to the ld. representative, 70% of the fee charged by the assessee trust goes t....

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....011 in order dated 14/12/2012. In fact, this Tribunal, after considering the judgment of the Apex Court in the case of Sole Trustee, Loka Shikshana Trust (supra) has observed as follows:      4. We have considered the rival submissions on either side and also perused the material available on record. Admittedly, the taxpayer is running coaching classes. The taxpayer is not doing any other activity. The question arises for consideration is whether conducting coaching classes for the students would fall within the meaning of "education" as provided in section 2(15) of the Act. The Apex Court had an occasion to consider the provisions of section 2(15) of the Act in Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR....

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....on and in the process make you wiser though poorer. If you visit a night club, you get acquainted with and add to your knowledge about some of the not much revealed realities and mysteries of life. All this in a way is education in the great school of life. But that is not the sense in which the word "education" is used in clause (15) of section 2. What education connotes in that clause is the process of training and developing the knowledge, skill, mind and character of students by normal schooling."      5. From the above judgment of the Apex Court it would be abundantly clear that there should be a systematic instruction to the students by way of normal schooling. Mere coaching classes may provide some kind of know....

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....r appearing in various examinations conducted by the Board of Mining Examination and / or MI(1) section (a)(b) and the said coaching of students in an institute is not, in our opinion, an imparting of education which can be said to be a process of training and developing knowledge and character of students by normal schooling. A coaching institute cannot be said to be an institution where normal schooling is done. The definition of "charitable purpose" is inclusive and not exhaustive."      8. It is further seen that the Gujarat High Court also had an occasion to consider identical issue in the case of Saurashtra Education Foundation vs C.I.T. (2005) 273 ITR 139 (Guj). The Gujarat High Court found that all kinds of ed....