TMI Blog2014 (5) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... rstood in the context of the educational objects of the Trust – also in Samria Charitable Trust Versus DIT (E), Mumbai [2013 (6) TMI 330 - ITAT MUMBAI] it has been held that Education has different shades and all kinds of education are not covered by the provisions of section 2(15) of the Act - The education for the purpose of earning profits, imparting knowledge, which is required for getting employment are not covered by the provisions - the assessee is yet to commence its activities - there is neither institution nor any coaching classes conducted by the assessee as stated by the Managing Trustee at Bar - the matter should be re-visited by the DIT (E) for examining the basic facts – thus, the matter is remitted back to the DIT(E) – Decid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l or sustenance of birds animals plants and living beings of all kinds. Preservation of environment and advancement of any other objects of general public utility as the Trustees may think fit and in such manner as the Trustees may think and for one or more of such public charitable purposes as aforesaid to the exclusion of one or more of them as the Trustees may think fit. (b) That the office of the DIT (A) had orally communicated the objects raised by the DIT (E) in connection with the application for registration of the Trust u/s 12AA of the Act just few days before the expiry of the time limit specified under sub-section (2) of section 12AA for passing an order for granting or refusing registration u/s 12AA of the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, DIT (E) found that assessee's objections include giving loans to needy students and runs coaching classes and set up of the pathological clinics, vocational training centres etc. He also noted that there is no legal obligation on the Trustees to apply the income of the Trust for the charitable purposes only. Accordingly, he relied on the judgment of the Hon'ble Supreme Court in the case of Sole Trustee, Lok Shikshana Trust v. CIT [1975] 101 ITR 234 before coming to the conclusion that the assessee's objects are not charitable and as per DIT (E), essentially they are commercial in nature. Further, DIT (E) held that the assessee has not carried on any activity during the year baring spending of Rs. 5000/- on education ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s promotion of education and the DIT (E) has applied the judgment of the Hon'ble Supreme Court in the case of Sole Trustee, Lok Shikshana Trust (supra) ignoring the provisions of proviso to section 2(15) of the Act. He also underlined the fact that it is premature for rejection of the registration when the assessee is yet to get into activity giving effect to the objects of the Trust. Spending merely Rs. 11,000/- was also demonstrated relying on the papers filed in the paper book. In support the claim for grant of registration, assessee relied on various decisions which are as under: (1) Sole Trustee, Lok Shikshana Trust 101 ITR 234 (SC) (2) Urban Improvement Trust v. CIT [2013] 142 ITD 313 (Jodhpur) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns, there is a detailed discussion regarding the meaning of education in the context of object of providing coaching classes . Providing tutorial or coaching classes to the working students does not amount to commercial activity. Education is a broad and generic term and the same should be understood in the context of the educational objects of the Trust. In the said orders of the Tribunal, there is a discussion about the non-rejection of the request for registration before the Trust really takes off. Substantively, the conclusion has given in para 11 of the said order of the Tribunal in the case of Samaria Charitable Trust (supra), which reads as under: 11. To conclude, we have hitherto discussed the (i) existing provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the teaching personnel etc to be in tune with the educational objects of the trust. DIT(E) denied registration sole on the ground of extended and inclusive object of tutorial or coaching classes . Therefore, in principle, the said denial of registration at this phase of the trust activities is not proper. Further, it is undisputed that the education should refers to a formal education by virtue of schools, colleges, universities and it is the core object of the assessee as seen from Clause 7 of the trust deed. Education has different shades and all kinds of education are not covered by the provisions of section 2(15) of the Act. The education for the purpose of earning profits, imparting knowledge, which is required for getting emplo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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