TaxTMI 
TaxTMI 
2016 (6) TMI 933
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....t the activities of the assessee are charitable in nature and that assessee is eligible for exempton u/s. 11 of the Act by ignoring the fact that the activities of the assessee of conducting examination by charging fees are essentially carrying the characteristics of business. 2. That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the activities of the assessee are charitable in nature and that assessee is eligible for exemption u/s. 11 of the Act by ignoring the fact that the assessee is not providing formal schooling which the essence of education. 3. That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the assesee is an educational institut....
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....ischief of Proviso of Section 2(15) is not applicable as held by the ITAT during the AY 2009-10 and accordingly, allowed the relief or exemption u/s. 11(1) as a charitable institution and accordingly directed the AO to allow the exemption u/s11(1) with all the consequential benefits. 5. Against the order of the learned CIT(E) the Revenue is in appeal before the Tribunal. 6. Ld. DR relied upon the order of the AO and reiterated the contentions raised in the grounds of appeal. It was submitted by the learned DR that the AO has rightly assessed the income vide his order dated 25.03.2014 passed u/s. 143(3) of the I.T. Act, 1961 at Rs. 2,53,59,589/- by treating it as entire surplus as per Income & Expenditure Account which was taxed under sect....
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....fore law) of the Constitution of India but the Hon'ble High Court has read down the strict and literal interpretation of the Proviso of Section 2(15) and has held that mere receipt of fee or charge cannot be said that the assesse is involved in any trade, commerce or business and has accordingly allowed the relief to the ITPO case vide Para 58 and 59 of the order. 4.7 After considering all the facts and circumstances of the case, I am of the view that apparently the assessee is not apparently involved in any trade, commerce or business and as such the mischief of Proviso of Section 2(15) is not applicable as held by the Hon'ble Tribunal during the AY 2009-10 as referred above and as such assessee may be allowed the relief or exemption u/s....
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....for the AY 2009-10 and also relying upon the judgment of the Hon'ble Jurisdictional High Court in the case of India Trade Promotion Organisation vs. DGIT(E) (2015) 371 ITR 333 (Delhi) and has rightly held that the proviso to section 2(15) is not applicable to the assessee as the assessee is not involved in any trade, commerce or business. For the sake of clarity, we are reproducing the relevant finding of the Tribunal passed vide order dated 16.5.2014 in ITA No. 907/Del/2013 in assessee's own case for the AY 2009-10, which the Ld. CIT(E) has followed in the present case, because the issue in dispute in the AY 2011-12 is squarely covered by this decision. "5. We have heard the rival contentions and perused the material available on record. ....
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....urriculum, reproduction of text books, faculty development programmes are to be held as educational activities. 5.3. In view of these clear judgments we find no merit in the order of AO to give a restricted meaning to the scope of meaning of term educational activities. Thereby AO's necessity of holding of regular classes or wholesome educational activities to be only eligible to be called education activities eligible for benefits uls 11 cannot be sustained. 5.4. It is a settled law that a charitable or educational institution can charge fees for rendering services, it is so as the surplus is accumulated which is further to be applied for charitable objects of the institution. In case of winding up, surplus has not dwell upon share....