TMI Blog2014 (3) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of the assessee during the year is in pursuance of such purpose. The decision in Harnam Singh Harbans Kaur vs. Director of Income-tax (Exemption), Delhi [2011 (12) TMI 232-ITAT DELHI] followed - charitable institutions registered u/s 12A of the IT Act and doing the activity in the nature of charity, cannot be held to be engaged in the activity of advancement of any other object of general public utility - the research report of the assessee, which was published in medical journals, was in the nature of doing education activity - The department has not been able to refute this finding, as also the finding that the assessee is mainly engaged in the field of medical research and during the year under consideration, it has done research work in collaboration with various international organizations, like WHO, UNICEF and Research Council of Norway - this aspect was duly verified by the DIT at the time of granting registration to the assessee u/s 12AA of the Act – thus, there is no reason to interfere in the findings of the CIT(A) – Decided against Revenue. - ITA No.4329/Del/2012 - - - Dated:- 21-2-2014 - Shri A. D. Jain And Shri Shamim Yahya,JJ. For the Petitioner : Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofessional receipt stating that the assessee Society had entered into an agreement with SAS, which had its registered office in Kolkata and had been engaged in research activity on implications of various medicines related to children infections for the last more than twenty years; that since the SAS had been unable to do some part of the research work, they had entered into the agreement with the Assessee Society to give techno-medical research support in the project called ROTA VIRUS ; and that the receipt in question could not be termed as a contract receipt. 4. The Assessing Officer, however, observed that a perusal of the agreement entered into by the assessee with SAS showed that SAS had provided expertise services to the assessee and had taken consideration for the same from the assessee, rendering the transaction totally commercial in nature; that the Proviso to Section 2 (15) of the Act is applicable to charitable organizations engaged in the carrying on of any other public utility ; that the said Proviso is not applicable to charitable organizations engaged in either relief to the poor or medical relief or education; that the activities of the assessee did not fall w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. Counsel for the assessee, on the other hand, has placed strong reliance on the impugned order. It has been contended that the activity of the assessee was that of a research in the ROTA VIRUS project, which research is the main activity of the assessee Society even as per its Memorandum of Association; that the said activity, undisputedly, is a charitable activity; that the assessee is duly registered u/s 12A of the Act; that in such circumstances, the Ld. CIT (A) has correctly applied the decision of Harnam Singh Harbans Kaur vs. Director of Income-tax (Exemption), Delhi , 2011 (12) TMI 232-ITAT DELHI (copy filed); that as correctly observed by the Ld. CIT (A), the meaning of the term education cannot be restricted to formal schooling or college and it must be understood in a broad sense, where knowledge is passed on through any means to the ultimate recipient; that the research activity conducted by the assessee Society is nothing other than in the nature of education and as such, it is a charitable activity within the meaning of Section 2 (15) of the IT Act and not an activity in the nature of advancement of any other object of general public utility. 8. The main ai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT Act; that since the assessee did not fall within the scope of charitable purpose , as defined in Section 2(15) of the Act, the benefit of Sections 11/12 of the Act was being disallowed to the assessee for the year under consideration. The Assessing Officer also sent a proposal for withdrawal of registration to the assessee u/s 12AA of the Act, to the DIT (E), separately. 11. By virtue of the impugned order, the Ld. CIT (A) deleted the disallowance, treating the activity carried on by the assessee as falling under education within the meaning of Section 2 (15) of the Act and thus, a charitable activity. While doing so, the Ld. CIT (A) applied the decision rendered by the Delhi Bench of the Tribunal in Harnam Singh Harbans Kaur vs. Director of Income-tax (Exemption), Delhi (supra). 12. The grievance of the department before us is that the Ld. CIT (A) has erroneously held the activity of the assessee Society to be falling under education as defined in Section 2 (15) and not under advancement of any other object of general public utility as defined therein. 13. In this regard, as noted hereinabove, the main aims and objects of the assessee Society, as per its Memor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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