TaxTMI 
TaxTMI 
2016 (5) TMI 629
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....ns to disallowance of claim of exemption under section 11 of the Income Tax Act, 1961 (for short "the Act"). 3. Brief facts are, the assessee trust claiming to be engaged in educational activity, is registered under section 12AA of the Act. For the assessment year under dispute, the assessee filed its return of income on 29th September 2009, declaring total income of ` nil after claiming exemption under section 11 of the Act. In the course of assessment proceedings, the Assessing Officer noticing that as per the income and expenditure account of the impugned assessment year, assessee has shown income amounting to ` 4,11,41,950, on account of fees received on professional development program, arranging technical meeting and seminar was of....
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....ment to section 2(15) w.e.f. 1st April 2009, since the assessee is earning income from activities of commercial nature, it is not entitled for exemption under section 11. The Assessing Officer observed, the word "education" as used in section 2(15) would mean systematic instruction in school or training given to young children in preparation of the work of life. He observed, considered in the context of ratio laid down by the Hon'ble Supreme Court, it cannot be said that the assessee is engaged in the activity of education. On the aforesaid basis, the Assessing Officer ultimately concluded that the assessee is not eligible for exemption under section 11 of the Act and accordingly completed the assessment. Being aggrieved of the assessme....
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....ection 12A, was granted, assessee's claim of exemption under section 11 cannot be rejected merely for the reason that amendment was effected to section 2(15) of the Act by insertion of proviso which puts a restriction that the advancement of any other object of general public utility shall not be considered to be existing for charitable purpose if the trust or institution carries on any activity in the nature of trade, commerce or business. Learned Authorised Representative submitted, reading of the provisions contained under section 2(15), would clearly indicate that the proviso only applies to the last category of activity i.e., advancement of any other object of general public utility and not to education. He submitted, as the assessee i....
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.... a number of decisions as submitted in a compilation. 6. Learned Departmental Representative on the other hand relying upon the order of the learned Commissioner (Appeals) submitted, assessee having been engaged in commercial activity is not eligible for exemption under section 11 of the Act. 7. We have considered the submissions of the parties as well as the decisions relied upon by the learned Authorised Representative and also perused the material available on record. Undisputedly, the assessee trust came into existence in the year 1997 with certain objects. The learned Commissioner after verifying the objects of the assessee being satisfied that it has been created for charitable purpose granted registration under section 12A of t....
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....ion from availing exemption under section 11 of the Act, unless it is established that dominant object of the trust or institution is not charitable but earning income through business. As already stated, apparently there is no change in object of the assessee on the basis of which it was created and granted registration under section 12A of the Act. It has been held in a number of judicial pronouncements that if a trust or institution is created with the object of advancement of any other general public utility and in the process of carrying on such activity, it generates some income from activities of commercial nature but which is incidental and ancillary to its main charitable object, it will not loose its character as a charitable inst....
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....ing to their respective conclusion that assessee is not engaged in any educational activity they have totally overlooked these documentary evidences produced by the assessee. At least, the order passed by the authorities did not reveal so. Moreover, certain additional evidences produced by the assessee before this forum viz. syllabus for courses were admittedly not before the Departmental Authorities. Therefore, in our view, the assessee's claim that it is imparting education or engaged in educational activity requires examination by verifying the entire documentary evidences brought on record. As the Departmental Authorities have not verified or applied their mind to the documentary evidences which according to the assessee demonstrate tha....