TaxTMI 
TaxTMI 
2016 (6) TMI 979
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.... for running educational institutes while rejecting its application for grant of registration. 4. The DIT erred in taking a very narrow meaning of "normal schooling" in rejecting its application for grant of registration. The appellant submits that the DIT ought to have taken a broad meaning of the term "education" contained in section 2(15) while considering its application for grant of registration. 5. The appellant submits that merely because preschooling is not recognized or regulated by any authority would not imply that the relevant activity cannot be regarded as "education" within the meaning of section 2(15). 6. The appellant submits that it had filed full details and explanation before the DIT in support of its application for grant of registration including the charitable nature of its objects and the DIT erred in rejecting its application. 7. The appellant submits that the order of the DIT rejecting its application for registration be set aside and the DIT be directed to grant registration to the appellant trust. 8. Each of the above grounds of appeal are independent and without prejudice to each other. 9. The appella....
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.... made his arguments to assail the reasoning given by the Ld. DIT for denying the benefit of registration. It has been submitted by the Ld. Counsel that Ld. DIT has ignored the object mentioned in the trust deed wherein it is specifically provided that the trust has been constituted for the purpose of imparting high quality education to all types of students from any background by way of setting up schools, colleges and vocational training institutes in India. The preschool is just one of the activities; which has been taken up just in the beginning of the activities because, only little time had passed since date of constitution of trust when the application for registration was filed. It was further submitted on 'without prejudice' basis that in any case pre-schooling was also integral part of 'education' and cannot be and could not be seen in isolation from it. Ld. Counsel also relied upon the judgment of Chennai Bench of the Tribunal in the case of Life Shines Educational & Charitable Trust vs. ACIT in ITA No.2818 and 2819 (MDS) of 2014 60 taxmann.com 155 for the proposition that activity of running a pre-school and collecting the fee for imparting education to children shall be....
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....te education for each and every person right from its childhood can never be over emphasized. The education has got different meaning, purpose or object for each person depending upon its position and background. We have education of various types e.g. Pre-schooling, schooling, higher education, professional education, vocational training, professions training etc etc. After completing the school education, students go for higher education which may be obtained through college, university or they may choose to go for a professional course even after completing the professional qualification. There are many post qualification courses. That is to convey that 'education' may begin at any stage and it may go on throughout the life of a person. Under these circumstances, one cannot isolate 'education' given at one of the stages to say that it should not be treated as part of 'education'. The pre-schooling has become today a mandatory prelude to school education. It is like step number one in the ladder. If step number one is taken properly, then other higher steps would be achievable more efficiently and effectively. That is the purpose as has been understood by the parents who send ....
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....y excluding the same from this definition, if it involved carrying on of any activity in the nature of trade, commerce or business. Further, even after huge litigation with respect to blanket exemption to educational institutions, when the amendment was made by the Finance Act, 2009, the activity of the education was kept outside the purview of newly inserted proviso. Thus, impliedly, it can be said that, it is clear that the legislature has given great significance to the utility of 'education' in our country." 3.9. Further, it is noted in the case of Life Shines Educational & Charitable Trust (supra) Chennai Bench of the Tribunal held that "pre-schooling' shall fall within meaning and scope of the 'education' as used u/s 2(15). Thus, in view of the aforesaid discussion and facts of this case, we do not find any justification in the view adopted by the Ld. DIT that preschooling is not part of education activity. In our considered view pre-schooling is very much integral part of the term 'education' as has been envisaged u/s 2(15) of the Act and we hold so. 3.10. Whether charging of fee and retaining surplus amounts to commercial activity, disentitling an assessee from the be....