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2022 (2) TMI 975 - AT - Income TaxExemption u/s 11 - Charitable activity u/s 2(15) - income earned by the assessee out of commercial exhibitions, auditorium etc., - contention of the revenue is that the object of the trust is only in the nature of advancement of any other object of the general public utility - As per assessee basic objects of the Centre or to inculcate and promote Indian arts, educate children in the field of science, arts, history and social response by Centre not only educates people at large but about astronomy through professional astronomers but also generate interest in physics the Centre also conduct exhibitions to exhibit the art of poor artists, coming from remote parts of India and thus provides relief to the artists in the form of sale of their art as well as promoting their skills - as per revenue object of the assessee will fall in the category of advancement of any other object of the general public utility thus operations carried on by the assessee are in the nature of commerce or business specially looking into the proportion of receipts from such activities therefore, the activities carried on by the assessee are not exempted in view of the section 13(8) HELD THAT:- We observe from the record that assessee was granted 12A registration and continues to enjoy as the trust is established with the object to promote education. It is also fact on record that assessee was treated as an institution to promote the education and cause for promoting the education over the years until the present impugned Assessment year in which Assessing Officer after considering the object and activities of the assessee and came to the conclusion that assessee is hit by the proviso to section 2(15) of the Act and he categorized the assessee under the category of advancement of any other general public utility. We observe from the record that assessee is engaged in the formal form of Certification course of Astronomy and Astrophysics with collaboration with Mumbai University. The Annual Report submitted by the assessee gives detailed discussion of the Education activities carried on by the assessee, it is also found that the assessee is imparting the education in the form of organizing various workshop/lectures/Conferences apart from providing the certificate course. It is also fact on record that assessee is also carrying out activities such as Annual Exhibitions for poor artists and exhibitions held in the hall of Arts, the Nehru Center also organizes programs on Music and Culture etc., it is also submitted that Council of Scientific and Industrial Research has approved the assessee’s trust for the purpose of section 35(1) of Clause (ii) of the Act. Assessing Officer has accepted that some of the activities assessee undertakes in the field of education and it spent some income on these activities. Therefore, Assessing Officer has not disputed the fact that assessee is engaged in the activities of Education and relief to poor. We are in agreement with the findings of the Ld.CIT(A) that the term education should be understood in common parlance and should not be mixed up with the mode of giving education. With the advancement in technology the education can be provided on electronic gadgets also. Therefore, we do not find any reason why assessee should not be treated as engaged for imparting education. Through several conventional and modern methods which are in the nature of imparting education. Therefore, we do not see any reason to interfere with the finding of the Ld.CIT(A). AO treated the hiring and planetarium receipts are in the category of business and not for charitable activities - Whether hiring charges and planetarium receipts are in the nature of business or not? - CIT(A) by relying in the case of Institute of Chartered Accountant of India v. DIT(E) [ [2013 (7) TMI 205 - DELHI HIGH COURT] held that ICAI does not carry on any business, trade or commerce. The activity of imparting education in the field of accountancy and conducting courses are activities in furtherance of the objects for which the ICAI has been constituted. By relying on the above decision Ld.CIT(A) held that activity of running the planetarium for general public at normal rate and earning revenue from shows does not make the activity as non-charitable. Therefore, we do not find any reason to interfere with such finding of the Ld.CIT(A). CIT(A) observed that ‘education’ is a very wide term which covers not only the skills and information imparted in schools and colleges but also covers the entire field of any institution which disseminates ‘information and skills’ not only offline but online as well and that is also not confined to basic education like languages, sciences etc., but also encompasses the entire gamut of universe. We are in agreement with the decision of the Ld.CIT(A) that most of the institutions depends on voluntary donations and contributions and aid from government and income from property held by the trust by way of rent and assessee also depends wholly on the investments from which it derives interest and also income from the property held in trust by way of rent which are ultimately applied to meet the ‘objects of the trust, that is, education and in certain ways to meet the objects of general public utility No reason to interfere in the conclusions reached by the Ld.CIT(A) that assessee was engaged in charitable activity and for the purpose of advancing its objects; it earned income which was incidental to its activities. He also came to the conclusion that it is an institution which imparts education and fulfills the basic condition laid down in section 2(15) of the Act. Therefore, the proviso to section 2(15) of the Act does not arise in the case of the assessee. With the above observations and facts on record we deem it fit and proper to dismiss the grounds raised by the revenue. Accordingly, grounds raised by the revenue are dismissed.
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