TaxTMI 
TaxTMI 
2017 (8) TMI 170
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.... June 1, 2015. The appeal was filed immediately thereafter on June 4, 2015. The file would have, it is stated, bunched along with the other section 12AA files on account of centralised processing of applications for registration. The facts have not been contested by the assessee, so that having regard thereto, no laches can be inferred. In fact, the learned authorised representative of the assessee did not raise any serious objections to the condonation of delay. After hearing the parties, we are satisfied that there was a reasonable cause for filing the appeal belatedly. The delay was accordingly condoned, and the appeal admitted for hearing. 3. The issue involved in the instant appeal is the exigibility to exemption under section 11 on the assessee's income, denied by the Revenue, since allowed by the first appellate authority. The basic controversy attending this case is if the assessee-society, formed on December 1, 1998, duly registered as a charitable institution under section 12AA of the Act on March 17, 2003, is pursuing the object of education, as contended by it, or the same is the advancement of any other object of general public utility, as contended by the Reven....
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....of India [2012] 347 ITR 86 (Delhi), wherein the hon'ble court noted that the respondent-institute imparts formal education in an organised and systematic manner, with a view to test the proficiency of the students for entering the profession of accountancy. Even the open universities possess all the three indica of an educational institution, i.e., imparting formal training, accountability to an authority and control over the students, and that therefore the assessee cannot be compared therewith as well and, accordingly, be regarded as an educational institution. Per contra, its activities can therefore only be regarded as qua advancement of an object of general public utility, which would though stand to be disqualified as a charitable purpose in view of the proviso to section 2(15) of the Act. The learned Commissioner of Income-tax (Appeals), however, was of the view that the scope of education cannot be confined to formal school/college education alone, i.e., in the sense of a class room teaching. When the object of the trust was dissemination of useful knowledge, which will be promoted through conferences, publication of journals, books, bulletins, etc., the trust has to be....
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....End users * Academic institutions * Machinery suppliers * Designers and consultants In order to promote the growth and development of FRP composites and their industrial and technological base. The Institute started functioning in 1999 Objectives of the Institute * Advancement of composites technology by promoting/propagating the use of composites and their products. * Human skill development by imparting knowledge and skills to the engineers, fabricators, supervisors and the workers engaged in composites industry/organisations." (emphasis, ours) The assessee's operating statement for the year, which also bears figures for the immediately preceding year, is summarised as under : (Amount in Rs. lakhs) Income Current year Previous year Membership fee 1.10 0.07 Sponsorship 46.02 4.43 Stall charges 302.71 - Delegate fee 3.32 - Training programme - 3.46 Interest 11.80 7.06 Misc. - Souvenir, etc. 3.91 - Total 368.86 15.02 Expenditure Current year Previous year Hall rent charges 57.46 3.55 Salary and ....
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.... the process of training and developing the knowledge, skill, mind and character of students by normal schooling." The appellant-trust in that case, publishing news papers in pursuance of clause 2(c) of its object clause, i.e., supplying the Kannada speaking people with an organ or organs of educated public opinion and conducting journals in Kannada and other languages for the dissemination of useful news and information and for the ventilation of public opinion on matters of the general public utility, contented on that basis that it was engaged in the field of education. It is in this context that the hon'ble court went on to observe that anything one does or engages in involves, in some measure, education, and that therefore cannot be construed in such a wide sense. In fact, it also discountenanced the use of the word "education" in the objects clause of the appellant trust to say that it was a case of clever drafting (pages 256-257 of the Reports). Advancement of any other object of general public utility, i.e., the residuary category, was opined, with reference to the judicial pronouncements, viz., All India Spinners' Association v. CIT [1944] 12 ITR 482 (PC) ; C....
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....in future. Again, any short-term course or training programme, even if conducted in the past, would not imbue it with the character of an educational institution, i.e., whose sole or even predominant purpose and the object is education. In other words, the terms of the memorandum of understanding (with ICT, Mumbai), defining the role and responsibilities of the assessee, shall have to be examined to see if it could fall within the purview of "education", i.e., as judicially explained and settled. Further, there is in fact nothing to show that the assessee has the necessary resources and wherewithal to pursue the said objective, which shall require, infrastructural apparatus apart, skilled, trained and dedicated manpower. Again, we may though add, it is only the predominant character of the institution that is to be considered. A mere browse of the assessee-society's objectives, and it is apparent that the same cannot be regarded as "education" but only advancement of any other object of general public utility, which stands succinctly summed up in its objects clause 'A', i.e., to advance and develop the art, science, technology and engineering of fibre reinforced plas....
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....n on Reinforced Plastics (ICERP), stated to be held biannually, supplying the society the funds necessary to carry out its other objects as well as fund its activities and other regular expenditure. The financial aspect apart, the said activity stands undertaken only in pursuance of its objectives, providing a platform for showcasing the latest developments in the field of composites to the various stakeholders, viz. suppliers of raw materials ; manufacturers of machinery ; end users of the reinforced plastics ; in fact to all involved in some manner with the composites. Any activity requires funding, and if this generates funds for the society ; the income far exceeding the expenditure thereon, it is only good for the institution, engaged in a public purpose, and does not detract from the fact that it stands performed only in pursuance of its objectives. In other words, nothing turns on it stating the biannual exhibition as a principal source of income for the society. That the same, due to the receipts-direct and indirect, flowing from this event, exceeding the threshold limit of Rs. 25 lakhs, so that the same disqualifies itself as a charitable purpose, in view of the amended la....
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....n. It, a professional association, provides a platform for exchange of knowledge between its members, drawn from the relevant industry ; the industrial houses ; merchandisers ; potential users, etc., as well as to convey the developments and trends in the relevant field. Research and development, which again cannot be said to be the assessee's domain ; it nowhere being able to show to have the expertise ; infrastructural facilities ; and technically skilled manpower, so as to engage therein the same being the case qua education as well, is an ongoing process in any industry, offering new products and processes. Technology in that sense is an integral part of modern day life, providing the cutting edge in every industry ; in fact, in every sphere of human endeavour. We have only to look around for everyday products being used now, with reference to that being used, say, a decade or even a few years earlier, in every aspect of human life, viz. food (processing) ; clothing ; housing ; conveyance ; communications ; etc. to find them having witnessed a near revolution therein. In fact every industrial house of some repute has a separate wing for research and development, creating....