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2022 (5) TMI 1498
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.... findings of A.O., wherein, the A.O. has not treated the activity of the appellant as Education within the main limb of charitable purpose as defined u/s 2 (15) of I.T. Act, but has carried over it under the fourth limb of general public utility. While challenging the findings of A.O., the A.R. of the appellant explained the issue as under: "The Trust has written a script of the drama Janata Raja [means an intelligent King who understood the feelings of his public] and is performing its shows all over India. The said drama is not an entertainment activity simpliciter. The script of the drama is written in such a way that good governance qualities of Maharaja Shivaji are being highlighted by appropriate historical incidents which have a deep impact on persons witnessing the drama. The aforesaid principles of good governance need to be practiced by all of us in present modern world. The political wisdom and acumen ship practiced by the Maharaja has been in an appropriate and apt manner unveiled, which is relevant even today. In order to appreciate and understand the said drama in its proper perspective, the appellant has given you the video and audio CDS, both in Marathi and Hind....
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....ate (Through CBI/New Delhi) v. S.J. Choudhary, AIR 1996 SC 1491, 1494; [1996J 2 SCC 428, this court has quoted the following passage with approval in support of updating construction (page 433 of [1996] 2 SCC): "Statutory Interpretation by Francis Bennion, 2nd edn. section 288 with the heading 'Presumption that updating construction to be given' states one of the rules thus (page 617) (2) It is presumed that Parliament intends the court to apply to an ongoing Act a construction that continuously updates its wording to allow for changes since the Act was initially framed (an updating construction). While it remains law, it is to be treated as always speaking. This means that in its application on any date, the language of the Act, though necessarily in its own time, is nevertheless to be construed in accordance with the need to treat it as current law. In the comments that follow it is pointed out that an ongoing Act is taken to be always speaking. It is a lso, further, stated thus (pp. 618-19): 'In construing an ongoing Act, the interpreter is to presume that Parliament intended the Act to be applied at any future time in such a way as to give effect to the true....
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....if it involves the carrying of any activity In the nature of trade, commerce, or business or any activity of rendering any serV1ce In relation to any trade, commerce or business for a cess or fee or any other consideration irrespective of the nature of use or application or retention of the income from such activity. Several implications have arose from this amendment. The newly inserted proviso will not apply in respect of the first three limbs of section 2(15) i.e. relief of poor, education or medical relief. Consequently, where the purpose of a trust or institution is relief of the poor, education or medical relief, it will constitute charitable purpose, even if, it incidentally involves the carrying of commercial activities. The newly inserted proviso to section 2(15) will apply only to entities whose purpose is advancement of any other object of general public utility i.e the fourth limb of the definition of charitable purpose contained in section 2(15). Hence, such entities will not be eligible for exemption u/s 11 of I.T. Act, if they carryon commercial activities. Whether, such an entity is carring on an activity in the nature of trade, commerce, or business is a question o....
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....an 385 (1992), while considering section 115(4) of the Delhi Municipal Corporation Act 1957 held that the imparting of education must involve public benefit so as to fall within the meaning of charitable object. As per explanation to section 115(4) (a) of the Delhi Municipal Corporation Act. 1957, charitable purpose includes relief of the poor, education and medical relief but does not include a purpose that relates exclusively to religious teaching. It more or less conforms to the definition of charitable purposes as defined u/s 2(15) of I.T. Act. Apart from the above, there are plethora of case laws, wherein, education has been held as charitable activity and further included in the main limb. For this purpose, reliance is placed on the decision of H'ble Supreme Court in the case of Sole trustee lok Shikshan Trust 101 ITR 234 wherein H'ble Supreme Court observed that the sense in which the word education has been used in section 2(15) is the systematic Institution, schooling or training given to the young in preparation for the work of life. It also connotes the whole course of scholastic instruction which a person has received ... what education connotes in that clause i....
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....satisfy the condition as laid down by H'ble Supreme Court in the case of Sole Trustee Cited (Supra). Regarding, appellant's contention that due to modernization, the methods and technique of education at every level are witnessing unprecedented changes. The effect of audio / visual impact on the student is effective and is appreciated and accepted all over the world. No doubt, with change of times and the even widening horizons of knowledge may bring in changes in the methodology of teaching or shift for the better in the institutional set up. Advancement of knowledge brings within it's fold suitable methods of it's dissemination and though the primary methods of sitting in classroom may remain ideal for most of the initial education, it may become necessary to have a different outlook for further education, however, considering the intent of the existing Law, the point to be emphasized here is, the purpose for which the institution is set up and the form of education that is provided. If the claim of the appellant is accepted, then, there is no need for fourth limb of the definition of charitable purpose and that is general public utility because overall charity ac....