TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 255
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....ons erred in Rejecting the registration of the Trust, without giving any specific finding for the rejection of Appellant trust on the issue of genuineness of the activities of the Appellant trust and Compliance with the other laws for achieving the objects of the trust. 3. Learned CIT Exemptions, Chennai grossly erred in overlooking the fact that the Appellant is registered for recognition with Accredited Educational body. National Institute of Open Schooling (NIOS) as the order received on 26.11.2024. 3.1 The Ld CIT Exemptions grossly further erred in not considering that the Appellant trust is imparting education under a systematic instruction, Schooling and training given to the Students. 3.2 The Ld CIT Exemptions failed to understand that the Syallbus are framed as per the National Council of Educational Research and Training [NCERT] NCERT, upon which the accreditation is given by NIOS. 4. Ld CIT Exemptions without appreciating the on going Scholastic educational activity, came to a conclusion that the Appellant trust is engaged in training the students without systematic curriculum as approved. 5. Ld CIT Exemptions failed to appreci....
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....e Gurukulam is a class apart from regular institutions with a unique approach to education. Our students engage in India-based subjects like Ganitam, Vigyanam, Samaskritham and Bharateeyalthihasa. 4. The applicant trust has applied for recognition vide Mou dated 24.03.2024 for recognition with National Institute of Open Schooling (NIOS) which is coming under Ministry of Education, Government of India and received the order on 28.11.2024." The assessee-trust also referred to the income and expenditure account for the A.Y. 2023-24 and also the balance sheet as on 31/03/2024 showing the expenses incurred to achieve these objectives. The ld. CIT(E), however, rejected the claim of the assessee-trust and denied the registration under Section 12AB of the Act on following grounds: (i) That the applicant-trust had received by way of "Fees from Educational Activity" etc. and it has applied income towards "Camp expenses", "Salary", "Professional and Consultancy Charges", "Rent" etc. and no amount has been spent towards "Charity" as envisaged under Section 2(15) of the Act. (ii) The activities of trust cannot be held as education and in turn a charitable one since....
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....oping the knowledge, skill, mind and character of students by normal schooling. Based on the above reasoning, the Hon'ble Supreme Court held that trust, the object of which is to supply the people with an organ of educated public opinion should not be considered to be one for education but as one for any other object of public utility. Therefore, the scope of the term 'education' is relatively narrow in India and Section 2(15) is not wide enough to include every acquisition of further knowledge within the purview of education. In re., the Trustees of Tribune [1939] 7 ITR 415 (PC), the Privy Council had held that setting up of press and printing of newspaper which provides an educated opinion to the public may or may not be an object of general public utility but it could not be considered as a charitable activity imparting education. 3. The ld. CIT(E) further placed reliance on the decision of the Hon'ble Supreme Court in the case of New Noble Educational Society v. CCIT [2022] 143 taxmann.com 276 reaffirmed the narrow and restricted meaning of the term education, while delivering this judgment, the Supreme Court observed that it is not the broad meaning of the expres....
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....of Gurukulam has not been under any formal recognition from any authority viz., CBSE, State Board etc. Further, The High Court of Madras in the case of Raja Sir Annamalai Chettiar Foundation vs CCIT 2020 116 Taxman.com 128 has held that where the only source of income for schools run by applicant trust was fees from students and no free education or scholarship was provided, such schools were to be held established with profit motive. For the year ending 31.03.2024 under the head "Scholarships and Discounts" only "NIL" amount is shown and hence, it is construed that it has not given any scholarship/concessions to the students." The ld. CIT(E) also referred to the CBDT Circular No. 11/2008 wherein it is clearly described as under: "Relief of poor encompasses a wide range of objects for the welfare of the economically and socially disadvantaged or needy. It will, therefore, include within its ambit purposes such as relief to destitute, orphans or the handicapped, disadvantaged women or children, small and marginal farmers, indigent artisans or senior citizens in need of aid." Finally, the ld. CIT(E) held that from the details available on records and from the ....
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....tion 12AB/80G was rejected. It is submitted that Ld CIT Exemptions failed to appreciate that the Appellant trust has received donation and applied towards the objects for education and also applied for charity as evident from Financials 31.03.2021, 31.03.2022 and 31.03.2023 and erroneously observed that the Appellant trust is not carrying Charitable activity Copy of Audited Financials enclosed in Page no 17-27. It is further submitted that the Ld CIT Exemptions grossly erred in not considering the Scholarship and discounts given in earlier years 31.03.2021/2023 and concluded that for 31.03.2024 the amount spent is NIL and has not given any scholarship/concession to students. Further the Ld CIT(E) relied upon High Court of Madras in the case of Raja Sir Annamalai Chettiar Foundation vs CCIT 2020 116 Taxman.com 128, as per the facts of this case, in the deed there is no clause to for providing free education for children coming from different social and educational background and for providing scholarship to underprivileged children. Copy enclosed in page number However in the Appellant trust deed do have clause related to education to Below poverty line students and underprivileged.....