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2017 (10) TMI 1307 - AT - Income TaxDenying the assessee’s claim of exemption u/s 10(23C)(iiiab) - assessee’s activities were non-educational and for the purpose of earning profit and the payment made to PSIEC was in violation of section 11(5) - Held that:- The activities carried out by the assessee society of conducting courses and training programmes amounts to education. We agree with the assessee that the revenue earned from letting out premises to various organizations is incidental to the main object of imparting education through training programmes and study courses conducted. It is not the case of the Revenue, nor has it been pointed out to us that letting out of the premises of the assessee society has been done for any other purpose other than letting it out during the course of conducting training programs and study courses. Therefore, the revenue earned therefrom are incidental to carrying out of the main objectives of assessee society of imparting training to the public administration officers of the Government of Punjab. No merit in the contention of the Revenue that profit making is its main objective of the assessee society. The Balance Sheet and Income & Expenditure account of the assessee for the year ended on 31.03.2013 show that the during the year the assessee had earned no surplus at all, on the contrary it had excess of expenditure over income of approx. ₹ 1.95 crores and its accumulated losses over the years was ₹ 7.18 crores. The entire funds of the assessee stand invested in fixed assets, fund investments and advances none of which ,except advances to PSIEC, have been found to be not for the purpose of the assessees objects. As advances was for developing the infrastructure of the assessee society for furthering its objectives, which is an application of income in furtherance of its stated objectives and clearly not an investment in violation of the modes of investments prescribed u/s 11(5) of the Act which prescribes the modes in which accumulated money is to be invested or deposited by societies or institutes claiming exemption u/s 11 of the Act. - Decided in favour of assessee
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