TMI Blog2014 (4) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... character of students by normal schooling - Mere coaching classes may provide some kind of knowledge to the students - But that kind of acquisition of knowledge through coaching classes cannot fall within the meaning of "education" as provided in section 2(15) of the Act - Patna High Court in case of Bihar Institute of Mining And Mine Surveying vs C.I.T. [1993 (12) TMI 50 - PATNA High Court] held that mere conducting of classes for open university / distance education cannot be construed as charitable activity within meaning of section 2(15) of Act – Decided against Assessee. Rejection of application for registration u/s 12AA of Act – Held that:- taxpayer is conducting coaching classes - Therefore, it cannot be treated as a charitable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rged by the assessee trust goes to the assessee. The fees prescribed for admission of the student is paid by demand draft in favour of the trust. Therefore, according to the ld. representative, the Commissioner of Income-tax is not correct in rejecting the application of the assessee. The ld. representative placed his reliance on various judgments of the High Courts in support of his contention. 3. On the contrary, Smt. Latha V Kumar, the ld. DR submitted that the assessee is acting as agent / study centre for Karnataka Open University. Therefore, it cannot be considered to be an educational institution. An organization merely providing facilities for open university studies cannot be considered to be a regular school / college. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5] 101 ITR 234 (SC). After considering the provisions of sections 2(15) of the Act, the Apex Court found that all kinds of acquiring knowledge will not come within the meaning of "education". What "education". connotes in section 2(15) is the processing of training and developing the knowledge, skill, mind and character of students by normal schooling. In fact, the Apex Court has observed as follows at page 241 of the ITR: "The sense in which the word "education" has been used in section 2(15) is the systematic instruction, schooling or training given to the young is preparation for the work of life. It also connotes the whole course of scholastic instruction which a person has received. The word "education" has not been used in that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kind of acquisition of knowledge through coaching classes cannot fall within the meaning of "education" as provided in section 2(15) of the Act. As the Apex Court observed, one may acquire knowledge in the course of travelling; during the course of reading newspaper; etc. But that kind of knowledge cannot fall within the term "education" as provided in section 2(15) of the Act. There should be a normal schooling by way of regular and systematic instruction. 7. The Patna High Court in the case of Bihar Institute of Mining And Mine Surveying vs C.I.T. (1994) 208 ITR 608 (Pat) held that mere conducting of classes for open university / distance education cannot be construed as charitable activity within the meaning of section 2(15) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, etc. would result in grant of a diploma or degree by a university or a governmental agency. In the case before us, admittedly, the taxpayer is conducting coaching classes. Therefore, it cannot be treated as a charitable institution as provided in section 2(15) of the Act. This Tribunal is of the opinion that the taxpayer is not eligible for registration u/s 12AA of the Act. Accordingly, the order of the lower authority is confirmed.' 5. In view of the above, this Tribunal is of the considered opinion that conducting a study centre for Karnataka Open University cannot be considered to be an educational institution within the meaning of section 2(15) of the Income-tax Act. Therefore, the assessee is not entitled for registration. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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