AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (5) TMI 146
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.... hit by the provisio to section 2(15) of the Income Tax Act and holding that the activities carried out by the assessee are in nature of business and denying the registration u/s. 12A of the Act. That the DIT(E) be directed to grant registration u/s. 12A of the Act in the interest of justice. iii) That the appellant craves leave to add, to modify, rescind, supplement or alter any of the grounds stated hereinabove, either before or at the time of hearing of this appeal." 3. The brief facts of the case are that the Assessee Society has filed an application in Form No. 10A on 30.3.2013 seeking registration u/s. 12A of the Income Tax Act, 1961. Accordingly, the assessee was issued Notice dated 25.4.2013 requesting it to submit certain documents / explanations. In response thereto Assessee's Authoised Representative and its Secretary attended the proceedings and filed the details/documents from time to time. After considering the same, Ld. DIT(E) has rejected the Application for grant of registration u/s. 12A by holding that activities of the Applicant fall under the category of General Public Utility (GPU) and are in the nature of business. It was further held by the DIT(E) that t....
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....ds structured courses for classroom teaching for welders, fresh engineers, etc. on various welding related subjects. Certain fees is collected from the participants to meet the expenses under the head Structured Course subscription. Similarly, certain education seminars, symposiums, workshop and training, etc. are also being conducted for which also fee is charged. Delegate fee is charged from the attendees to meet the cost of food, printing materials, venue rent, honorariums to speakers and trainers, etc. There are programmes, which are conducted free or at concessional amounts also depending on the type of people attending the education programmes. Another head of income is 'through advertisement and sponsorship contributions received from entities who wish to participate. A perusal of the details filed by the applicant revealed that it intends to upgrade the skills of the interested people in trade and students in the field of welding. For this purpose, it is running regular courses, distance learning courses and has entered into MOU with various Universities, i.e., Annamalili University, National College of Tiruchirapalli, Sri Ramakrishna Advances Training Institute, lIT Ch....
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....heme viii) Publication of Course material and books. ix) Library at Tiruchirappalli x) Encouragement to students and recognition xi) National welders skill competition. II. Activities related to relief to poor. III. Role in medical Relief IV. Role in preservation of environment (Including water sheds/ forests and wild life) and preservation of monuments or place or objects of artistic or historic interest. In the light of above, the applicant stated that activity of the society is to provide education in field of welding and it fully complies to the charitable purpose as per section 2(15) of Income Tax. 5.4 I have carefully considered the submissions made by the applicant and gone through the details filed by it. There is no merit in applicant's submission that its activities fall under the definition of education. The activities of the applicant - running skill enhancement course cannot be considered as imparting education. In this regard, a reference is made to the decision of Hon'ble Supreme Court of India in the case of Sole Trustee Lok Shiksha Trust vs. CIT (1975) 10 ITR 234 (SC) wherein the Apex Court has explained the meaning of the word 'educa....
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....m, conference panel discussion of experts, etc. The applicant is charging fees for these services. It is a clear case of service provider and service seeker. Thus, the activities of the applicant are in the nature of business for which fees is being charged. Business normally has the following ingredients: (i) Continuance and systematic activity, (ii) Transaction between two persons, (iii) Element of reciprocity; and (iv) Profit motive. 6.2 Normally, profit motive test must be satisfied, but it is not final. If there is evidence and material to show that the activities were carried out on sound and recognized business principles and pursued with reasonable continuity, it would constitute business, even if there is no profit motive. In the case of P. Krishnamanon (356 ITR 48), the Apex Court has held that it is not motive of the person doing an act, which decides whether the act done by him is the carrying on of business, profession or vocation. If it were not so, a person carrying on what otherwise would be a business may say that he did not carrying on business because it was not his intention to make any income out of it. The Supreme Court followed the 1888 British....
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.... of Written Submission dated 25..2013 filed before DIT(E) and the copies of the financial statements for the assessment years 2011-12; 2012-13 and 2013-14. He relied upon the all the written submissions filed before the Ld. DIT(E) and stated that the applicant is a registered society to promote the advancement of knowledge and provide education in the field of welding, cutting and hard facing, related technologies and allied sciences. It facilities exchange of ideas, information, and knowledge among members by organizing lectures, workshops, seminars, symposia, conferences and development programs, publishing periodicals, books, journals and magazines and to develop software and educational programs video files and training packages as per the objective of the society. The Society is engaged in academic education & training in welding and provides continuous education and up-gradation of knowledge in the specialized technical field through lectures, class room training, distance learning programmes, discussions, seminars and field trips etc. for all sections of society. It was further submitted by him that Ld DIT(E) while admitting the fact that the society does engage in education....
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....sion filed by the Applicant and the case laws cited therein. We find that the applicant has filed a Paper Book containing pages 1 to 114 and filed the written submissions dated 06.6.2013, 11.7.2013, 19.7.2013 and 25.9.2013 before the Ld. DIT(E), which he relied and reiterated before the Tribunal during the hearing. In our view, there is a need to discuss the Memorandum of Association in which the aims and objects of the society are mentioned. The following are the aims and objects of the society:- i. To promote the advancement of Welding, Cutting, Reclamation, Hard Facing and related technologies and other allied sciences which the Society may decide from time to time. ii. To facilitate exchange of ideas, information, development work etc. amongst members; by organising lectures, workshops, seminars, symposia, conferences and development programs; publish periodicals, books, journals, and magazines; and develop software and educational programs, video films and training packages relating to the objectives of the Society. iii. To offer flexible class room/distance learning programs in various aspects of welding & related technology that suit the requirement of various levels....
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....f annual / one time subscriptions; donations or otherwise from scientific, industrial and other organizations, corporate houses, firms and societies, individual scientists, technologists, industrialists or any other person(s) for the purposes of the Society. c) Print and publish any pamphlets / journals or other literature considered desirable for the promotion of the objects of the society. d) administer the funds and utilize the income and assets of the said fund for the purposes of the Society and invest and deal with the money of the Society not immediately required upon such security or securities and in such manner as may from time to time be determined by the Governing Council for the Society and its Chapters/ Branches. e) draw, make, accept, endorse and discount cheques, notes and other negotiable instruments on behalf of and for the purposes of the society. f) acquire by purchase, lease or otherwise land and buildings and any other property real or personal, and dispose off such property or any rights and privileges which the Society for the purposes thereof may from time to time think proper to acquire or dispose in the interest and objects of the society. ....
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....ide areas of society. The society plays an immense role in providing technical education and enrichment of knowledge through its interactive programmes and courses without having any commercial or profit motive. It is managed by very eminent and senior officials and personalities from industry and the government, who work at honorary positions and provide their skills and time to the programmes of the society. 7.3 On going through the Provisional Income Expenditure account for AY 2013-14, it reveals that applicant-society hold structured for classroom teaching for welders, fresh engineers etc. on various welding related subjects. Certain fees is collected from the participants to meet the expenses under the head. Structured Course subscription. Another source of revenue is from educational Seminars, symposiums, workshop and training etc. Delegate fee is charged from the attendees to meet the cost of food, printing materials, venue rent, honorariums to speaker's and trainers etc. There are programmes which are conducted free or at concessional amounts also depending on the type of people attending the education programmes. Another head of income is through advertisement and spo....
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.... journals, and magazines; and develop software and educational programs, video films and training packages relating to the objectives of the Society. iii. To offer flexible class room/distance learning programs in various aspects of welding & related technology that suit the requirement of various levels..........." From the above, it is established that the Society is carrying out the activities for the benefit of the public at large, in as much as any person desirous of enhancing his knowledge and training in the field of welding may participate in the programmes, classes, etc. held by the Society. To further classify the activity, it is apparent that the activity of the society is classified as imparting education. The Hon'ble Supreme Court has further held in the case of "Sole Trustee LOka Shikshana Trust" 101 ITR 234 as under:- '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 is preparation for the work of life. It also connotes the whole course of scholastic instruction which a person has received. The word 'education' has not been used in that wide and extended s....