TaxTMI 
TaxTMI 
2017 (1) TMI 616
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....his order dated 17.12.2009. 2. The only issue to be decided in this appeal is as to whether the ld CITA is justified in treating the tour expenses of Rs. 29,43,011/- and fashion show expenses of Rs. 36,53,054/- as application of income in the facts and circumstances of the case. 3. The brief facts of this issue is that the assessee is a charitable society registered u/s 12A of the Act with effect from 1.11.1973. The main activities of the society are imparting education. The assessee society runs a college in the name of 'Bhawanipur Education Society College', a vocational art academy, a secondary school and a higher secondary school. The ld AO observed that the assessee society had submitted audited accounts for all the units i.e sch....
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....ociety shall not be regarded as application of income as according to him the same are not relevant for the purpose of objects of running an educational society :- (a) Tour expenses - Foreign tour provided to students of Bhowanipur Gujarati Education Society College (b) Functions and Festivals - Annual Fashion Show and Mr. and Mrs University expenses. 3.2. The assessee replied before the ld AO as below:- "The management has always felt that 'seeing is believing' and has been the first among the Educational Institutes to undertake foreign tours for the benefits of the students. We believe that hands on approach will make the students more competent to handle the competitive world once they pass out of the college. This educ....
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....ed on school and college students for education tours in India and Foreign countries. He held that there is no material to suggest that these tours were for special category students. He held that these trips were very much part of education co-curricular activities for the students which was aimed to development of the students. Accordingly he held that the same would amount to application of income for the objects of the assessee society. 5. With regard to fashion show and Mr. & Mrs. University expenses, the ld CITA observed that the college is running a vocational training department which has several students and has fees earning of close to Rs. 40 lacs during the year under appeal. He observed that this department of the college hol....
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....ing the paper book of the assessee containing the various scrutiny assessment orders passed u/s 143(3) of the Act for the Asst Years 2003-04 , 2004-05 , 2007-08 , 2008-09 and 2010-11 together with its audited financial statements comprising from pages 1 to 38 of Paper Book. It is not in dispute that the assessee society is an educational institution imparting education and is granted registration u/s 12A of the Act with effect from 1.11.1973 and its income is exempt u/s 11 of the Act. We find that the assessee society is also having registration u/s 10(23C) of the Act as an educational institution. The ld AR argued that the society is running a degree college affiliated to Calcutta University as well as running a school affiliated to ISC Bo....
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...., language, literature of different countries, which would be part and parcel of the vocational art academy course run by the assessee society. These tours would also enable the students to understand the history of different countries which would definitely fall under the category of imparting education. Moreover, these type of tours would also provide greater close bonding between the students and the teachers which in turn would increase the confidence of the students to interact with the teachers thereby improving the communication and interactive skills of the students. We find that the ld CITA observed that the 2015 Secondary Curriculum issued by the Central Board of Secondary Education , New Delhi oat page 234 had suggested essential....
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.... and Interior Department under the Vocational Art Academy and the said department is spread over 11000 sq.ft. He argued that the course of fashion designing is about learning on how to design and manufacture clothes and this learning is ultimately showcased to the world including fashion designers, recruiting companies etc through the fashion shows. We hold that these shows admittedly provides a platform for the students to display their talents and also to exhibit what they had learnt in the classroom. This also creates lot of employment opportunities for the students. We hold that these events help in students shedding their inhibitions and come out of stage fear which in turn enables the students to meet the society at large with greater....