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2011 (7) TMI 393 - AT - Income TaxProvision under section 11(4A) - the assessee has brought to our notice the guidelines issued by the Ministry of Human Resources, IGNOU, AICTE and submitted that in the light of the same, it cannot be construed that a finishing school programme is a separate activity and takes the nature of normal coaching class - Running of the 'finishing school' is an integral part of the whole educational curriculum of the trust. 'Finishing school' cannot be equated with a coaching class - The Revenue is of the view that in order to claim exemption of income, the activity should be incidental to the main activity - As per section 11(4A) separate books are to be maintained for this activity - As we have held that finishing school is not an incidental activity but a part of the activity of imparting education by the trust, the provisions contained in section 11(4A) does not apply. Regarding the collection of fees - collection of fees is implicit in its objects when a trust is required to establish, set up, promote and run educational institution, for which registration was granted - The charitable nature of expenses incurred by the trust out of the fees having not been found for non-charitable purpose, the same cannot be viewed adversely against the assessee the Revenue cannot take advantage of the same as the activities of the assessee are found to be in accordance with the objects for which registration was granted - This objection of the Revenue is only technical in nature and cannot be considered at all - Accordingly,uphold the finding of the learned CIT(A) in this regard finding the grounds raised by the Revenue as devoid of merit.
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