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2023 (3) TMI 920 - AT - Income TaxExemption u/s 11 - Charitable activity u/s 2(15) - whether the assessee is carrying out activities qualifying as being charitable in terms of section 2(15) so as to entitle it to claim exemption of its income u/s 11/12 ? - as per AO assessee was carrying out activity of general public utility as defined under section 2(15) - as per CIT-A activity carried out by the assessee qualified as education in terms of section 2(15) - HELD THAT - As in terms of Section 2(15) of the Act education means only imparting formal scholastic learning - See NEW NOBLE EDUCATIONAL SOCIETY 2022 (10) TMI 855 - SUPREME COURT . As in view of the narrow and restricted meaning given to the term education as used in Section 2(15) of the Act the activities carried out by the assessee being primarily run as a science museum does not qualify as education. The findings of the learned CIT(A) therefore holding so are set aside. We hold that the assessee is not engaged in the charitable activity of imparting education as defined under Section 2(15) of the Act and the order of the learned CIT(A) holding so is therefore set aside. Alternate contention of the assessee that its activities if not in the nature of imparting education they qualify as general public utility activity as held by the Assessing Officer also; but to exclude it from the definition of charitable purpose as defined under Section 2(15) - The activities carried out by the assessee are not in the nature of imparting education but are in the nature of general public utility activities in terms of Section 2(15) of the Act; and for the purpose of determining whether they are commercial in nature so as to disqualify them from being charitable activities in terms of first and second proviso to Section 2(15) of the Act the matter needs reconsideration by the Assessing Officer in terms of the guidelines laid down by the Hon ble Apex Court in the case of AUDA ( 2022 (10) TMI 948 - SUPREME COURT ) for determining the commercial nature of such activities. For the said purpose all the appeals are restored back to the AO. The AO is directed to determine the same and thereafter determine the income liable to tax in accordance with law. Appeals filed by the Revenue are allowed for statistical purposes
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