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2017 (1) TMI 1512 - AT - Income TaxEligibility for exemption u/s 11 - whether trust cannot be construed as engaged in educational activity? - Held that:- Education as provided under Section 2(15) of the Act, cannot be construed acquisition of knowledge by anyone. An individual may acquire knowledge every day and every minute in participating in some programme or activity that cannot be construed as education at all. Education is a formal schooling which results in confirmation of a degree or diploma by a Government or a Government agency or a University established under law. Acquisition of all kind of knowledge cannot be construed as an education at all. Therefore, preaching of ideology by the trust cannot be construed as engaged in educational activity. The assessee’s trust cannot be construed to be an educational trust. The main object of the trust is to provide guest houses for those who visit Pondicherry and also preach the ideology of Shri Aurobindo and the Mother. Therefore this Tribunal is of the considered opinion the activity of the assessee is nothing but general public utility. It is not in dispute that if the assessee’s object is general public utility, proviso to Section 2(15) of the Act, would come into operation. It is also not in dispute that the annual receipt exceeded the limit prescribed in proviso to Section 2(15) of the Act. Therefore, the assessee is not eligible for exemption under Section 11 of the Act. Hence, this Tribunal do not find any reason to interfere with the orders of the lower authorities. Accordingly the same is confirmed. - Decided against assessee.
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