TaxTMI 
TaxTMI 
2026 (7) TMI 889
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....le in nature which were also duly backed and supported by the activities so undertaken by the appellant society and as such, the denial of exemption is completely unjust and untenable both in law and on facts, more so, when under identical circumstances and facts registration under section 12AB/12AA was granted by Hon'ble ITAT in assessee's case. The learned Commissioner of Income Tax (Exemptions) failed to appreciate and understand the detailed explanations and replies furnished by the assessee appellant containing the details of activities, receipts and expenditures, which have all been misconstrued and misunderstood by CIT (E) while denying exemption to the assessee appellant. The learned Commissioner of Income Tax (Exemptions) has completely ignored that the society has organized various conference/ seminars to impart technical education for promoting, encouraging and developing the growth of lubricating greases and its application and any surplus which arose was only incidental to the main activity of the assessee society, which was also further utilized for charitable activities by the assessee - society. Reliance placed by learned CIT (Exemptions) on NLGI- USA, paren....
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....to masquerade as a pure scholastic "Educational Institution" or an entity for Other General Purpose Charity. 2. INVALIDATION OF THE PETITIONER'S "EDUCATION" CLAIM 2.1. The Petitioner relies on its seminars, grease-testing standards, and journals to claim exemption under the "Education" or other General Purpose Objects (GPU) of Section 2(15). 2.2. This claim is completely untenable under the law established by the Hon'ble Supreme Court in the Loka Shikshana Trust v. CIT [1975], which restricts "Education" to formal schooling and scholastic pursuits in a regular manner. This has again been reaffirmed by Hon'ble Supreme Court in the case of M/s New Noble Educational Society, pronounced in 2022 itself. 2.3. The IRS, USA classification of the parent body confirms that the literature, testing parameters, and symposiums created by the organization are commercial tools designed to advance the professional interests of corporate members (oil companies, manufacturers, and commercial labs). 2.4. Consequently, the Petitioner's paid conferences are commercial, industry focused workshops for working professionals rather than a systemat....
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....is recognized by the Internal Revenue Service of USA as a not-for-profit trade association, which falls under a different tax-which exempt status than a charitable organization. It is not a 501(c)(3) charitable organization which is basically akin to India's religious organizations. 5. A co-ordinate Bench in ITA No. 163/Del/2024 titled as in assessee's own case in order dated 27.05.2024 in para No. 5 to 8 reproduced as under: "5. As we appreciate the material before us and the submissions, it can be seen that the assessee society had commenced its activities on 14.05.1998 and is India Chapter of the National Lubricating Grease Institute, USA. It has been established by a Resolution of NLGI, USA on 27.10.1996. The office bearers and the members of the Society are from the oil companies, i.e., Indian Oil Corporation, HPCL and APAR Ltd., Mumbai. As per the assessee, lubricating grease is a very specific lubricant and the Institute provides a platform for researchers, academia-industry to advance on lubricating grease. The Society works in the following fields without profit motive: - "1. Education: The institute conducts annual "education course" for the benef....
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.... and to facilitate the exchange of information concerning lubricating grease between all interested organizations and individuals. 4.5 To disseminate information concerning the developments in lubricating grease and their applications through lectures, courses and workshops and to bring scientist, grease industry representatives, raw material suppliers, packages and users to a common forum. 4.6 To publish News bulletins covering information pertaining to the developments and activities in lubricating grease. 4.7 To render advice (technical or otherwise) to Government and commercial bodies on matters pertaining to lubricating grease, grease specifications and applications when needed or requested. 4.8 To collect technical information with respect to 1. New or improved methods of manufacturing LG. 2. New or improved equipments for manufacturing of LG. 3. New or improved containers for LG. 4. New or improved equipment for dispensing LG. 5. New or improved devices for applying LG. 6. New consumer requirements for LG. 7. Environmental and other regulatory issues. 8. Development of....
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....a class the trust might not be regarded as valid. In the various orders the clause relating to the beneficiaries has not been clearly and accurately set out. In the petition of appeal dated October 7, 1968 the provisions of the constitution of the assessee are set out and with reference to The community it is stated, "Rana community means natives of Ahmedabad only and the other community brothers accepted by the community as per old rules of the community staying in Ahmedabad". It is common ground that the word " old rules" do not represent the correct translation of the original word in Gujarati which is Riwaj meaning custom. The learned judges of the High Court also, who are conversant with that language, have proceeded on the basis that the correct rendering of the aforesaid word is custom or usage. That is why according to the High Court the definition comprises two classes of members of Rana caste residing in Ahmedabad, one class consisting of those who are natives of Ahmedabad while the other class consists of such persons who are admitted by the Rana caste according to the old custom or usage of the community. The reason which prevailed with the High Court for treating the s....
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.... the lubricating grease industry, we are of the considered view that the ld. Competent Authority has given a very narrow interpretation of the term, 'education' by relying the judgement of the Hon'ble Supreme Court in Sole Trustee, Lok Shiksha Sanstan Trust vs. CIT (1975) 101 ITR 234 (SC), by observing that there should be normal schooling by way of regular and systematic instructions. The assessee is not seeking any benefit of section 10(23C) of the Act, at this stage, so as to go into the question that seminar, workshops, conferences can be characterized as part of education or incidental to imparting education. What is relevant is that the assessee is established for holding these workshops and conferences for the benefit of the stakeholders of the lubricating grease industry and the advancement of the object which are held to be charitable, then, at this stage of grant of registration genuineness of the activity or the scope of the activity to ascertain whether the Society exists solely for education activity and not for profit could have been examined. 7. Similarly, the generation of surplus alone cannot be a criteria to deny the registration u/s 12A of the Act. When there are....