Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 170 - AT - Income TaxEligibility to exemption u/s 11 - charitable purpose u/s 2(15) - whether assessee does not conduct any formal educational courses nor is affiliated or registered with any authority - Held that:- The assessee has not shown to have the capacity for educational activity in regular manner, i.e., as a principal activity, the essence of which is scholastic instruction, howsoever executed, imparted in a systematic manner. As pointed out by the Revenue, there is no income or expenditure with reference to this activity in its statement. This is only understandable as the academic institutions are only one among the various stake-holders with which the assessee engages, so that even a receipt from this activity during the year would have no material impact. In fact, as we observe, the engagement with the educational institutions is on the fringe, though, as it appears, is slated to be expanded in future. Its operations as aforesaid are primarily as that carried out by the industrial/professional association/body. Commissioner of Income-tax (Appeals) has in our view misguided himself to construe the word "education" as occurring in section 2(15) in its widest sense. It is only the actual conduct of educational courses, where accredited, conducted under the auspices of a formal set up, so as to be recognised in the field of education, which would stand to be regarded as so. The assessee's objects and activity thus only fall within the purview of the residuary category of section 2(15), i.e., advancement of any other object of general public utility, so that the first proviso thereto shall apply, clearly debarring the assessee on account of its receipt for the year for being subject to exemption under section 11 of the Act. - Decided against assessee.
|