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2017 (1) TMI 453 - AT - Income TaxRejection of claim of exemption u/s 11 on the basis of proviso to section 2(15) - Assessee is carrying on education and training activities - charging of fees - Held that:- As decided in assessee's own case for AY 2010-11 mere charging of fees for carrying activities will not loose the character of charity and in this case, the department has already granted registration treating the activities as charitable but has not declared under which activity whether under education or general public utility. From the assessment order, the assessee has charged fee to various activities like seminars, participation fees of participants shows that assessee had engaged in some sort of lectures/training relating to the objects of the trust i.e. education and training to the bottom line employees in quality and improvement methods. It was not controverted by the department. It was only objected to charging of fees. In our considered view, the assessee has carried on the activities of imparting training to the bottom line employees and there is no element of profit in the said activity as the surplus generated out of the activities is again applied for the charitable activity only. Moreover, the assessee quoted various case laws in support of its claim that they are in the field of education. When analysed closely, all the institutions i.e. Ahmadabad Management Association, ICAI, Peter’s education society, are educating people more on structured manner and acknowledging by issuing proper certificates. In the present case, we are not sure if such activities are being carried on by the assessee. We are not inclined to adjudicate whether they fall into education activities in the absence of relevant material before us. However, assessee is imparting training to the bottom like employees, which may be similar to education. Hence, in our view, the assessee is involved in carrying on of charitable activities and not in any commercial activities as held by the AO. Thus, AO cannot deny the benefit u/s 11 of the Act. - Decided in favour of assessee
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