1986 (3) TMI 107

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...., the ITO held the trust to be eligible for the benefit under section 11 of the Act. The taxable income was found to be nil. However, the ITO's order reads that the claim section 10(22) was not accepted by him as the trustees are not running a school. Aggrieved by the same, the assessee appealed. The AAC, by order dated 19-5-1983 concurred with the view taken by the ITO. The assessee is on further appeal to the Tribunal. 3. The submissions of Shri J. I. Patel, on behalf of the assessee, were the following. He tools us through the aims and objects of the trust to say that the assessee is an educational institution as it directly supports girls of a particular section in their educational pursuits and that the income of the trust is mainly s....

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....r communities : "to educate or cause to educate them physically, mentally, intellectually, economically, culturally, morally and with the purpose of overall growth in practical, physical, moral, fine arts, medical, commercial, industry, agriculture and technical or any other pertaining field." as set out in clause 4 of the constitution of the trust. To fulfill these objects, the trust can to do the following activities : "1. In Bombay, in Cutch or at any other place to establish or conduct, obtain or be helpful to montessory, primary, secondary or high school, teachers training school, Centre or class, laboratory centre or class regarding agriculture, vocation, industry, school, Centre or class regarding medical, physical school or clas....

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....explained 'education' connotes 'processing of training and developing knowledge, skill, mind and character of students by normal schooling'. Such schooling or training and systematic instruction to pupils can only through schools and colleges. If 'education' is so understood for its inclusion in the phrase 'charitable purposes' to get some limited or qualified relief under section 11 in the case of a trust, it would be illogical to suggest wide or extended meaning when it appears (with its grammatic variations) in section 10(22) where the relief is total. The assessee-trust which is not running any school as it appears to us, it is, at present, is not even directing its attention to establish one cannot be conceived of as an educational ins....

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....of profit. 10. The other case referred on behalf of the assessee was the decision of the Andhra Pradesh High Court in the case of Governing Body of Rangaraya Medical College v. ITO [1979] 117 ITR 284. In this case, a medical college was managed and run by the assessee (a society). This makes all the difference. 11. The AAC followed the decision of the Tribunal in the case of Bombay & Mangrol Jain Sabha [IT Appeal No. 2751 (Bom.) of 1974-75] to uphold the ITO's action in not granting exemption under section 10(22). Shri Patel argued that the above decision has been reviewed by the Tribunal in its subsequent decision in IT Appeal Nos. 5269 and 6082 (Bom.) of 1983 and IT Appeal Nos. 3938 and 5549 (Bom.) of 1982 (for the assessment year 1975-....