AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
2017 (11) TMI 962
X X X X Extracts X X X X
X X X X Extracts X X X X
....fficer. * In its impugned order, the learned Director (Exemptions) had mentioned that the activities of the applicant would fall under the residual category of 'General Public Utility' and not under the category of 'education', which is not in accordance with prevalent law as the nature of activities carried on, by the assessee fall under education. * Learned Officer has mistaken the services provided to NOLS USA as being provided outside India. Assessee has provided the services to foreign students in India and has taken the fee of teaching foreign students . Learned DIT instead has taken a stand that the assessee is providing services outside India. * Learned Officer has erred in rejecting the registration by mentioning that the company is providing services outside India . * The assessee company provides service to its parent company for teaching the foreign students in India, for which there exists a prior agreement. * The Learned Officer has overlooked all the case laws mentioned and has issued impugned order. * Thus this Appeal. * The appellant begs to leave to amend, add or substitute any further ground(s) of appeal." ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eing trained Submissions of the assessee are as under- 3) Nanda Devi Outdoor Leadership School India is a section 25 company registered in India as per the Companies Act 1956 and is limited by the shares. As per section 25 of the company Act, the company which intend to be in non profit sector or to be engaged in charitable activities, they may get themselves registered under this section. Once a company is registered under section 25, it has to apply for a license with Central Government and If Central Government is so satisfied as to its objects to be that of non profit or charitable activities, it may grant the license and after obtaining such license, it may retain a name that does not contain the words "Private Limited". In the license all the conditions are mentioned which are to be abroad with. 4) The fact that the assessee is constituted u/s 25 of the Companies Act, alone, is sufficient to prove that the activities of the assessee are genuine and charitable in nature and no profit motive embodied therein. Section 25 of the Companies Act reads as under: - "Section 25 in The Companies Act, 1956 25. Power to dispense with" Limited" in name o....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... its name and, unless its articles otherwise provide such body shall, if the Central Government by general or special, order so directs and to the extent specified in the direction, be exempt from such of the provisions of this Act as may be specified therein.] 7. The licence may at any time be revoked by the Central Government, and upon revocation, the Registrar shall enter the word" Limited" or the words" Private Limited" at the end of the name upon the register of the body to which it was granted; and the body shall cease to enjoy the exemption granted by this section: Provided that, before a licence is so revoked, the Central Government shall give notice in writing of its intention to the body, and shall afford it an opportunity of being heard in opposition to the revocation. (8) (a) A body in respect of which a licence under this section is in force shall not alter the provisions of its memorandum with respect to its objects except with the previous approval of the Central Government signified in writing. (b) The Central Government may revoke the licence of such a body if it contravenes the provisions of clause (a). (c) In according....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssessee Company are not entitled for any dividend. 8. Therefore it is proved beyond doubt that assessee is an entity having no profit motive and therefore it is a charitable organization 9. Assessee seeks to rely on the judgment of Hon‟ble Delhi Bench of the ITAT in the case of Disha Mico credit in ITA NO 1374 of 2010 wherein it has been held approval of Govt vis-a- vis incorporation of the a section 25 Company would prima-facie prove that the objects are charitable in nature. Copy of the judgement is annexed in Decisions Paper Book and also available on the web site of ITAT. 10. It is next submitted that it is the matter of assessment which has to be seen by the AO at the time of assessment in case the funds are not applied for charitable purpose. 11. It is next submitted that so far as the nature of the objects that is whether they are charitable in nature or not the CIT has not made any observation in the impugned order and rightly so. Because CIT was very much aware of the fact that assessee is a section 25 Company. 12. It is submitted that the Ld CIT has doubted the activities of the assessee by observing that activity of wild....
X X X X Extracts X X X X
X X X X Extracts X X X X
....llmark of outdoor education is its focus on the "outdoor" side of this education; whereas adventure education would focus on the adventure side and environmental education would focus on environmental. Wilderness education involves expeditions into wilderness "where man is but a visitor." For more information, see Outdoor education definitions (Wikibooks)." 14. The above definition available in public domain will prove beyond doubt that assessee is covered in the ambit of education and hence provision of proviso would not be applicable to assessee. And therefore the CIT was not correct in holding that objects of assessee falls under the phrase objects of general public utility. 15. It is next submitted that CIT has relied on the decision of Lok Skishan 101 ITR 234(Del) and holds that education means systematic learning through schooling. It is submitted that law has been developed a lot after this decision. And in number of cases it has been held that the decision of Supreme Court has not restricted the meaning of world education. It is submitted that Hon‟ble Gujrat High Court has interpreted the judgment of Hon‟ble Supreme Court in the case of Gujrat ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....edge and hidden mysteries of life, the Supreme Court has indicated that the word 'education' is not used in a loose sense so as to include acquisition of even such knowledge. The observations of the Supreme Court only indicate proper confines of the word 'education' in the context of the provisions of s. 2(15) of the Act. It will not be proper to construe these observations in a manner in which they are construed by the Tribunal when it infers from these observations, in para 17 of its judgment, that the word 'education' is limited to schools, colleges and similar institutions and does not extend to any other media for such acquisition of knowledge. The observations of the Supreme Court do not confine the word 'education' only to scholastic instructions but other form of education also are included in the word 'education'. As noticed above, the word schooling), also means instructing or educating. It, therefore, cannot be said that the word 'education' has been given an unduly restricted meaning by the Supreme Court in the said decision" 16. Further assessee seeks to rely on the judgement of Delhi High Court in following cases. Wherein the Hon‟ble Jurisdictional High....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., colleges and similar institutions and does not extend to any other media for such acquisition of knowledge. The observations of the Supreme Court do not confine the word 'education‟ only to scholastic instructions but other forms of education also are included in the word 'education‟. As noticed above, the word 'schooling‟ also means instructing or educating. It, therefore, cannot be said that the word 'education‟ has been given an unduly restricted meaning by the Supreme Court in the said decision. b. ICAI Accounting Research Foundation vs. DGIT (E) 321 ITR 73 (Delhi) c. Delhi Music Society reported in 357 ITR 265 (Del) 17. In view of the above it is prayed that the appeal of the assessee may be allowed." 6. He further submitted a paper book wherein, the balance sheet of the assessee on 31.03.2011 was submitted. In the end he demonstrated by submitting a paper book containing several decisions. 7. The ld CIT DR vehemently submitted that the assessee is engaged in the activities which are not educational activities but are different as it involved etc. He further referred to print out of the Business Line wherein, the activ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sider whether the above assessee set up to administer and maintain technical trading institute for pre sea and post sea training for the ships and maritime industry is an 'education ' activity or not. Hon'ble High Court held that though courses are not approved it is an educational institute. Further the Hon'ble Kolkata High Court in Swar Sangam and other Vs. CIT [ 368 ITR 395] held that teaching in fine arts, Indian music and dance is also educational activities. The activities of the assessee before us are no different than the activities decided by the various High Courts as above. In all the above decisions the decision of the Hon'ble Supreme Court relied up on by the ld CIT (E) was considered and held that such a restricted meaning of 'education‟ cannot be given. In the present case the assessee‟s activities are prima facie 'educational activities‟ . further it is for the authority granting registration to give prima facie opinion with reasoning that the activities carried on by the assessee is eligible for registration u/s 12A of the Income Tax Act or not. Furthermore, while granting registration u/s 12A of the Act the registration authority is further requi....