TMI Blog1998 (9) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... sing in detail in his assessment order dated 29-3-1995 disallowed the claim of the assessee by holding that assessee is not entitled exemption under section 10(22) as aims and objects of the assessee are not for the purpose of any education. The exemption is allowed for the purpose of running Universities, Schools and any other objects only for education purpose. In view of the Assessing Officer the assessee failed to establish that the aims and objects of the assessee arc solely for the purpose of education. While holding so, the Assessing Officer discussed each and every aspect in detail. He considered the various case laws relied upon by the assessee and other case on which reliance was placed by the Assessing Officer. The Assessing Officer placed reliance in case of Sole Trustees, Loka Shikshana Trust vs Commissioner of Income-tax [1975] 101 ITR 234 (SC) wherein the Hon'ble Supreme Court has held that the term 'Education' has not been used in section 2(15) in a wide sense so as to include acquisition of every type of knowledge and refers to normal schooling only and also that the meaning of the term 'education' as used in section 10(22) of the Act is narrower than in section 2( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was exempt under section 10(22). Therefore, he did not charge interest under these sections as stated above. 4. The assessee preferred first appeal before the Commissioner of Income-tax(A) and the Commissioner of Income-tax(A), vide his consolidated order dated 21-9-1995 decided the appeals of all the four assessment years and the matter was restored to the file of the Assessing Officer for examining further. Before doing so, the Commissioner of Income-tax(A) has given his finding on the issue of transfer of files from Sirohi to Udaipur jurisdiction and action under section 148. The contentions on both the issues are rejected by the Commissioner of Income-tax(A) by holding that the Assessing Officer was having valid jurisdiction and the notice issued under section 148 were valid notices. The Commissioner of Income-tax(A) allowed the contention of the assessee that Commissioner of Income-tax Jaipur has issued directions that assessee should continue to enjoy the exemption. This directions were issued vide letter dated 29-11-1975. The assessee's contention regarding the direction of the D. G. (Exemption) who written to assessee that assessee is eligible for exemption under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -11-1975 of the then Commissioner of Income-tax, Rajasthan-H, Jaipur, and letter No. DGIT(E)/Cal./93-94/717 dated 15-6-1993 of Director General (Exemption), Calcutta are applicable in respect of the assessment proceedings for the year under consideration and thereby restricting the scope of examination by the Assessing Officer. (iii) in setting-aside the assessment without deciding the issues on merits despite the fact that the findings given by the Assessing Officer were based on reasonable grounds as discussed in the assessment order.' 7. Ground no. (iii) which is against the setting aside of the assessment without deciding the issue on merits despite the fact that the findings given by the Assessing Officer were based on reasonable grounds as discussed in the assessment order. A query was raised by the Bench whether the ratio of the decision of the jurisdictional High Court in case of Prem Agencies vs Commissioner of Income-tax [1988] 173 ITR 110 / 36 Taxman 294 (Raj) is applicable to the facts of the present appeals or not. The Id. D/R strongly stated that the ratio of the decision of the jurisdictional High Court is not applicable because Commissioner of Income-tax(A) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal. However, the facts in the present case are distinguishable because an appeal is filed before the Tribunal by the department containing three grounds. Although ground no. 3 is against setting aside of the assessment without deciding the issue on merits but it has to be seen in connection with the ground nos. 1 2 where relief has been claimed on merits. We have also seen the memorandum of cross objection to the Tribunal by the assessee which is equivalent to an appeal. On page 2 of the Cross objection there is a heading "General". In ground nos. 2, 3, 4 5 under this head, specific relief of exemption under section 10(22) of the IT Act has been prayed for. In other words, relief on merits has been prayed for before the Tribunal. In the above circumstances, we find that facts of the present case are materially distinguishable from the facts in the case of Prem Agencies (supra) and the ratio of the decision, is, therefore, not applicable to the facts of the present case since specific relief on merits has been prayed for. The Tribunal is authorised by law under section 254(1) of the Income-tax Act, 1961 to decide the issue on merits. The Appellate Tribunal has very wide po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer had stated during the appeal proceedings that this aspect had not been examined, whether the facts were different in these four years." 9. Similarly a letter had been issued by the Director General (Exemption) on 15-6-1993 according to which the assessee was advised that the assessee was rightly held to be an educational institution vide Commissioner of Income-tax, Rajasthan II, Jaipur letter dated 29-11-1975 and it should continue to enjoy the exemption. Here, again the Assessing Officer stated that during the appeal proceedings it had not been examined whether the facts in four years were different. The Commissioner of Income-tax(A) held that the DC (Asstt.) is a subordinate authority to the Director General of Income-tax (Exemption) under section 118 of the IT Act and his decision/instructions are binding on DCIT (Asstt.) unless there is change in the activities in violation of section 10(22). The matter was set aside to examine this aspect. 10. When the Assessing Officer was also present during the appeal proceedings, the Commissioner of Income-tax(A) could very well have asked him to carry out enquiries instead of setting aside the assessment. The fate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so plain which says that the exemption under section 10(22) is available to the University or the institution which is holding educational activities. No schools are run by the assessee, neither the assessee is affiliated with any educational institution approved by the Government. The assessee is an independent body and only spreading the message of their Dada Guru. It was also stressed upon that the institution should be an educational institution where only education is to be given and that should be without any profit. These conditions were not fulfilled by the assessee as they are not educational institution neither they are giving any regular education to the students or masses of the country. 13. On the other hand, the assessee is receiving huge donations by stating that their students have donated the amount as Re. 1/- per student per day. But no evidence is produced by the assessee at any stage. The Id. D/R strongly relied upon the order of the Apex Court in Sole Trustees, Loka Shikshna Trust's case (supra) at p. 245, further reliance was placed on Trustees of the Tribune, In re [1939] 7 ITR 415 (PC), Commissioner of Income-tax vs Sorabji Nusserwanji Parekh [1993] 201 IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any of the facts. Therefore, the department cannot change their mind that the assessee is not an educational institution and is not eligible for exemption under section 10(22). He drew our attention at pages 20 to 22 where assessment orders for assessment years 1984-85, 1982-83 and 1975-76 are enclosed. All these three orders are passed under section 143(3) and the claim of the assessee under section 10(22) was accepted. Therefore, the action of the deptt. is not f actually or legally correct. It was further stated that the order of the Gujarat High Court in case of Gujarat State Co-operative Union (supra), wherein the Hon'ble Gujarat High Court has discussed the issue in detail. It was further stated that the ratio of the decision of the Apex Court in the case of Sole Trustees, Loka Shikshana Trust (supra) has been discussed in detail and the Hon'ble Gujarat High Court has held that Gujarat State Co-operative Union is an educational institution. The assessee's aims and objects are on better footing. Therefore, the assessee is very much eligible for exemption under section 10(22). It was further stated that in the case of S. R. M. Foundations of India (supra) the Delhi Bench of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10(22) and exemption should be continued accordingly. It was further stated that Commissioner of Income-tax(A) has rightly held that the Institution is an educational institution and is entitled for exemption under section 10(22) but he restored the matter only for ascertaining that if any change in the facts of the assessee during these four years or not. It was further stated that there is no change of any kind either in the aims and objects of the society or in the facts of the case. All the material facts are same and there is no change in them at all. Therefore, there is no reason to take a different view in these years. 15. In reply the Id. D/R has stated that there should be judicial discipline which should be followed and he placed reliance on Sole Trustees, Loka Shikshana Trust's case {supra) where specific decision is given that the institution should be solely for the education purposes. The Id, D/R repeated that the assessee is not doing any educational activity. They are just publishing their propoganda just to get the importance. They have adopted a very systematic way to get the importance and for getting the importance they have to say something to the public beca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gion, politics of profession etc. Education is imparted through regular classes supported by books, charts, lectures, museums, exhibitions, fairs, conferences, seminars, get-togethers. Raja Yoga camps, correspondence courses, films, slide shows and modem media in various fields of society. The thrust of the Vishwa Vidyalaya is of knowledge, imparted in this University, is, first, to make man, in reality, a master of his own self and to enable him to have practical wisdom and to learn lessons for constant peace and happiness and for excellence in life. The Vishwa Vidyalaya imparted the education free and without any financial obligations. No fees are charged. However, a voluntary contributions are received in the field of physical, intellectual, monetary or spiritual services by the students of the Vishwa Vidyalaya or brothers and sisters of the divine family who have gained immense benefit, by overcoming vices and habits like smoking, drinking, non-veg diet and etc. As per their prospectus enclosed in the paper book, the University has over 2000 qualified, experienced, and dedicated teachers and experts in their line on its staff, besides highly talented and eminent personalities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her literature for imparting the abovesaid education, (v) To impart short training and referesher courses to students, or Dedicated or Trustee Brahma Kumaris / Brahma Kumars to enable them to realise deeper layers of divine knowledge, Sahaj Raja Yoga, divine virtues and Godly services in practical use in day to day life. (vi) For the efficient management and administration and for carrying of the objects of the Ishwariya Vishwa Vidyalaya, to maintain at its headquarters and/or the spiritual centres funds of the Ishwariya Vishwa Vidyalaya and to pay out of these funds all expenses of and incidental to its functioning. (vii) To co-operate with the Central Government or any State Government or any institution for the furtherance of all or any the objects of the Ishwariya Vishwa Vidyalaya. 20. After going through these some of the important aims and objects and functions of the Vishwa Vidyalaya we do not see any reason to believe that assessee institution is not imparting education or doing something else. We have also examined other facts of the case. Nowhere we find that the assessee is imparting education for the purpose of earning profits. Assessee is not charging any fee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax(A). While upholding the findings of the Commissioner of Income-tax(A), the Tribunal has discussed the ratio of decision of the Madras High Court in case of Aditanar Educational Institution, (supra) and the ratio of the decision of Sole Trustees, Loka Shikshana Trust (supra) and some other decisions were also discussed and after discussing the decisions the Tribunal came to the conclusion that the assessee is entitled exemption under section 10(22). At page 605 of 21 ITD, the Tribunal has observed that- "The systematic instruction in TM is initially imparted to the trainers (a copy of their sample bio data has been placed by the assessee on the paper book) and then the trainers (qualified instructors) impart instruction to the trainees. We are of the view that the text of "Systematic Schooling" laid down by the Supreme Court in the case of Sole Trustees, Loka Shikshana Trust (supra), was satisfied by the assessee if we look at its functions and activities. The facts in the case of Rajneesh Foundation (supra) were entirely different. There the Trust Deed envisaged embarking on a number of activities not related to its primary object. There was inter-mingling of several instit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid that the museum exists "solely" for educational purposes. The emphasis in section 10(22) is on the word "solely" (emphasis supplied). 23. Thereafter, explanation of the word "education" occurring in section 2(15) of the Act by the Supreme Court in case of Sole Trustees, Loka Shikshana Trust (supra) was taken up and following observations were made: "According to their Lordships of the Supreme Court, visiting a museum is one way of education in the great school of life but that is not be sense in which the word "education" is used in clause (15) of section 2 of the Act. According to their Lordships, "education" connotes the process of training and developing the knowledge, etc., of students by normal schooling. In this view of the matter, the museum cannot be taken to be an "educational institution" existing "solely" for educational purposes. Section 2(75) is wider in terms than section 10(22) of the Act. If the assessee's case does not fall within section 2(15), it is difficult to put it in section 10(22) of the Act." 24. The revenue has relied upon the underlined portion of the first extract and taken it to mean that the High Court was deciding a dispute whether a partia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee's case and, therefore, benefit of section 10(22) of the Act could not be given. 29. Here, again the revenue has picked up a sentence here or a sentence there from the judgement with the result that reference is erroneous. Judgements are not construed as statute but must be read as a whole. The decision takes colour from the question involved. In case of Commissioner of Income-tax vs Sudhir Jayantilal Mulji [1995] 214 ITR 154 / 84 Taxman 205 (Bom) which has further relied upon the decision of the Supreme Court in Commissioner of Income-tax vs Sun Engg. Works (P.) Ltd. [1992] 198 ITR 297 / 64 Taxman 442 at page 320. In this case the question and the consideration were limited to whether a Trust which was not carrying on educational activity itself but only providing scholarship and financial assistance to students was entitled to exemption under section 10(22). The facts in the present case are distinguishable, since the assessee was carrying on educational activity itself and was not providing scholarships or financial assistance. In such a case, any incidental activity, if any, to provide scholarships or any financial assistance would not come in the way of exemption. Fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leged. The claim is under section 10(22) of the Act, according to which the educational institution should exist solely for educational purposes and not for the purpose of profit. If there had been any motive of profit, the revenue would have raised the objection, but no such objection has been raised. In light of the above, the ratio of the decision is not applicable to the assessee's case. The reliance of the revenue on a few words from the judgment taking out of context is misplaced. 34. Therefore, in view of these facts and circumstances and as our discussion above, the assessee is entitled exemption under section 10(22) of the Income-tax Act, 1961 as assessee's aims and objects are to impart education and not to earn any profit. Therefore, the text of section 10(22) is fully in favour of the assessee. 35. As we have already stated that assessee was enjoying status of educational institution for the purpose of exemption under section 10(22) and the assessment under section 143(3) has been completed wherein the exemption was accepted. The exemption was granted upto the assessment year 1987-88 but in these four years the exemption was not granted. We are not able to understan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (22) as aims and objects of the assessee are not for the purpose of any education. The exemption is allowed for the purpose of running Universities, Schools and any other objects only for education purpose. In view of the Assessing Officer the assessee failed to establish that the aims and objects of the assessee arc solely for the purpose of education. While holding so, the Assessing Officer discussed each and every aspect in detail. He considered the various case laws relied upon by the assessee and other case on which reliance was placed by the Assessing Officer. The Assessing Officer placed reliance in case of Sole Trustees, Loka Shikshana Trust vs Commissioner of Income-tax [1975] 101 ITR 234 (SC) wherein the Hon'ble Supreme Court has held that the term 'Education' has not been used in section 2(15) in a wide sense so as to include acquisition of every type of knowledge and refers to normal schooling only and also that the meaning of the term 'education' as used in section 10(22) of the Act is narrower than in section 2(75). Reliance was also placed in case of Commissioner of Income-tax vs Maharaja Sawai Mansinghji Museum Trust [1988] 169 ITR 379 / [1987] 33 Taxman 279 (Raj) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commissioner of Income-tax(A) and the Commissioner of Income-tax(A), vide his consolidated order dated 21-9-1995 decided the appeals of all the four assessment years and the matter was restored to the file of the Assessing Officer for examining further. Before doing so, the Commissioner of Income-tax(A) has given his finding on the issue of transfer of files from Sirohi to Udaipur jurisdiction and action under section 148. The contentions on both the issues are rejected by the Commissioner of Income-tax(A) by holding that the Assessing Officer was having valid jurisdiction and the notice issued under section 148 were valid notices. The Commissioner of Income-tax(A) allowed the contention of the assessee that Commissioner of Income-tax Jaipur has issued directions that assessee should continue to enjoy the exemption. This directions were issued vide letter dated 29-11-1975. The assessee's contention regarding the direction of the D. G. (Exemption) who written to assessee that assessee is eligible for exemption under section 10(22). In para 5.2 at page 6 the Commissioner of Income-tax(A) has observed that "since the Dy. Commissioner of Income-tax is a subordinate authority to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lcutta are applicable in respect of the assessment proceedings for the year under consideration and thereby restricting the scope of examination by the Assessing Officer. (iii) in setting-aside the assessment without deciding the issues on merits despite the fact that the findings given by the Assessing Officer were based on reasonable grounds as discussed in the assessment order.' 7. Ground no. (iii) which is against the setting aside of the assessment without deciding the issue on merits despite the fact that the findings given by the Assessing Officer were based on reasonable grounds as discussed in the assessment order. A query was raised by the Bench whether the ratio of the decision of the jurisdictional High Court in case of Prem Agencies vs Commissioner of Income-tax [1988] 173 ITR 110 / 36 Taxman 294 (Raj) is applicable to the facts of the present appeals or not. The Id. D/R strongly stated that the ratio of the decision of the jurisdictional High Court is not applicable because Commissioner of Income-tax(A) has discussed in detail and after discussing in detail he restored the matter to the file of the Assessing Officer by stating that the case needs some further exam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Although ground no. 3 is against setting aside of the assessment without deciding the issue on merits but it has to be seen in connection with the ground nos. 1 2 where relief has been claimed on merits. We have also seen the memorandum of cross objection to the Tribunal by the assessee which is equivalent to an appeal. On page 2 of the Cross objection there is a heading "General". In ground nos. 2, 3, 4 5 under this head, specific relief of exemption under section 10(22) of the IT Act has been prayed for. In other words, relief on merits has been prayed for before the Tribunal. In the above circumstances, we find that facts of the present case are materially distinguishable from the facts in the case of Prem Agencies (supra) and the ratio of the decision, is, therefore, not applicable to the facts of the present case since specific relief on merits has been prayed for. The Tribunal is authorised by law under section 254(1) of the Income-tax Act, 1961 to decide the issue on merits. The Appellate Tribunal has very wide power under section 254(1) of the Act according to which it may after giving both the parties of the appeal an opportunity of being heard, pass such orders there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Similarly a letter had been issued by the Director General (Exemption) on 15-6-1993 according to which the assessee was advised that the assessee was rightly held to be an educational institution vide Commissioner of Income-tax, Rajasthan II, Jaipur letter dated 29-11-1975 and it should continue to enjoy the exemption. Here, again the Assessing Officer stated that during the appeal proceedings it had not been examined whether the facts in four years were different. The Commissioner of Income-tax(A) held that the DC (Asstt.) is a subordinate authority to the Director General of Income-tax (Exemption) under section 118 of the IT Act and his decision/instructions are binding on DCIT (Asstt.) unless there is change in the activities in violation of section 10(22). The matter was set aside to examine this aspect. 10. When the Assessing Officer was also present during the appeal proceedings, the Commissioner of Income-tax(A) could very well have asked him to carry out enquiries instead of setting aside the assessment. The fate of setting aside has been very strange. Therefore, we are of the considered view that no purpose will be served if the matter is restored to the file of Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls are run by the assessee, neither the assessee is affiliated with any educational institution approved by the Government. The assessee is an independent body and only spreading the message of their Dada Guru. It was also stressed upon that the institution should be an educational institution where only education is to be given and that should be without any profit. These conditions were not fulfilled by the assessee as they are not educational institution neither they are giving any regular education to the students or masses of the country. 13. On the other hand, the assessee is receiving huge donations by stating that their students have donated the amount as Re. 1/- per student per day. But no evidence is produced by the assessee at any stage. The Id. D/R strongly relied upon the order of the Apex Court in Sole Trustees, Loka Shikshna Trust's case (supra) at p. 245, further reliance was placed on Trustees of the Tribune, In re [1939] 7 ITR 415 (PC), Commissioner of Income-tax vs Sorabji Nusserwanji Parekh [1993] 201 ITR 939 (Guj), Bihar Institute of Mining Mine Surveying vs Commissioner of Income-tax [1994] 208 ITR 608 / 76 Taxman 455 (Pat), Maharaja Sawai Mansinghji Museu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 10(22). He drew our attention at pages 20 to 22 where assessment orders for assessment years 1984-85, 1982-83 and 1975-76 are enclosed. All these three orders are passed under section 143(3) and the claim of the assessee under section 10(22) was accepted. Therefore, the action of the deptt. is not f actually or legally correct. It was further stated that the order of the Gujarat High Court in case of Gujarat State Co-operative Union (supra), wherein the Hon'ble Gujarat High Court has discussed the issue in detail. It was further stated that the ratio of the decision of the Apex Court in the case of Sole Trustees, Loka Shikshana Trust (supra) has been discussed in detail and the Hon'ble Gujarat High Court has held that Gujarat State Co-operative Union is an educational institution. The assessee's aims and objects are on better footing. Therefore, the assessee is very much eligible for exemption under section 10(22). It was further stated that in the case of S. R. M. Foundations of India (supra) the Delhi Bench of the Tribunal has held that Transcendental Meditation (TM) is an educational activity. The assessee is also having the meditation classes which spread over to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ational institution and is entitled for exemption under section 10(22) but he restored the matter only for ascertaining that if any change in the facts of the assessee during these four years or not. It was further stated that there is no change of any kind either in the aims and objects of the society or in the facts of the case. All the material facts are same and there is no change in them at all. Therefore, there is no reason to take a different view in these years. 15. In reply the Id. D/R has stated that there should be judicial discipline which should be followed and he placed reliance on Sole Trustees, Loka Shikshana Trust's case {supra) where specific decision is given that the institution should be solely for the education purposes. The Id, D/R repeated that the assessee is not doing any educational activity. They are just publishing their propoganda just to get the importance. They have adopted a very systematic way to get the importance and for getting the importance they have to say something to the public because they want to achieve something by using the words of education otherwise they are not doing any educational activity. 16. We have considered these argume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seminars, get-togethers. Raja Yoga camps, correspondence courses, films, slide shows and modem media in various fields of society. The thrust of the Vishwa Vidyalaya is of knowledge, imparted in this University, is, first, to make man, in reality, a master of his own self and to enable him to have practical wisdom and to learn lessons for constant peace and happiness and for excellence in life. The Vishwa Vidyalaya imparted the education free and without any financial obligations. No fees are charged. However, a voluntary contributions are received in the field of physical, intellectual, monetary or spiritual services by the students of the Vishwa Vidyalaya or brothers and sisters of the divine family who have gained immense benefit, by overcoming vices and habits like smoking, drinking, non-veg diet and etc. As per their prospectus enclosed in the paper book, the University has over 2000 qualified, experienced, and dedicated teachers and experts in their line on its staff, besides highly talented and eminent personalities known all over the world for their accomplishment and achievements in spirituality and who generally provide deep inspiration to the students for indepth stud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... / Brahma Kumars to enable them to realise deeper layers of divine knowledge, Sahaj Raja Yoga, divine virtues and Godly services in practical use in day to day life. (vi) For the efficient management and administration and for carrying of the objects of the Ishwariya Vishwa Vidyalaya, to maintain at its headquarters and/or the spiritual centres funds of the Ishwariya Vishwa Vidyalaya and to pay out of these funds all expenses of and incidental to its functioning. (vii) To co-operate with the Central Government or any State Government or any institution for the furtherance of all or any the objects of the Ishwariya Vishwa Vidyalaya. 20. After going through these some of the important aims and objects and functions of the Vishwa Vidyalaya we do not see any reason to believe that assessee institution is not imparting education or doing something else. We have also examined other facts of the case. Nowhere we find that the assessee is imparting education for the purpose of earning profits. Assessee is not charging any fees. However, they are accepting donations given by their students, teachers or their devotees inside or outside the country. The Assessing Officer placed relian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Aditanar Educational Institution, (supra) and the ratio of the decision of Sole Trustees, Loka Shikshana Trust (supra) and some other decisions were also discussed and after discussing the decisions the Tribunal came to the conclusion that the assessee is entitled exemption under section 10(22). At page 605 of 21 ITD, the Tribunal has observed that- "The systematic instruction in TM is initially imparted to the trainers (a copy of their sample bio data has been placed by the assessee on the paper book) and then the trainers (qualified instructors) impart instruction to the trainees. We are of the view that the text of "Systematic Schooling" laid down by the Supreme Court in the case of Sole Trustees, Loka Shikshana Trust (supra), was satisfied by the assessee if we look at its functions and activities. The facts in the case of Rajneesh Foundation (supra) were entirely different. There the Trust Deed envisaged embarking on a number of activities not related to its primary object. There was inter-mingling of several institutions, each carrying on a different activity but put together not having a common denominator called "education". This decision cannot, therefore, be taken ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lanation of the word "education" occurring in section 2(15) of the Act by the Supreme Court in case of Sole Trustees, Loka Shikshana Trust (supra) was taken up and following observations were made: "According to their Lordships of the Supreme Court, visiting a museum is one way of education in the great school of life but that is not be sense in which the word "education" is used in clause (15) of section 2 of the Act. According to their Lordships, "education" connotes the process of training and developing the knowledge, etc., of students by normal schooling. In this view of the matter, the museum cannot be taken to be an "educational institution" existing "solely" for educational purposes. Section 2(75) is wider in terms than section 10(22) of the Act. If the assessee's case does not fall within section 2(15), it is difficult to put it in section 10(22) of the Act." 24. The revenue has relied upon the underlined portion of the first extract and taken it to mean that the High Court was deciding a dispute whether a partial educational purposes would be entitled to benefit under section 10(22) of the Act. However, the judgment must be read as a whole and should not be interprete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce there from the judgement with the result that reference is erroneous. Judgements are not construed as statute but must be read as a whole. The decision takes colour from the question involved. In case of Commissioner of Income-tax vs Sudhir Jayantilal Mulji [1995] 214 ITR 154 / 84 Taxman 205 (Bom) which has further relied upon the decision of the Supreme Court in Commissioner of Income-tax vs Sun Engg. Works (P.) Ltd. [1992] 198 ITR 297 / 64 Taxman 442 at page 320. In this case the question and the consideration were limited to whether a Trust which was not carrying on educational activity itself but only providing scholarship and financial assistance to students was entitled to exemption under section 10(22). The facts in the present case are distinguishable, since the assessee was carrying on educational activity itself and was not providing scholarships or financial assistance. In such a case, any incidental activity, if any, to provide scholarships or any financial assistance would not come in the way of exemption. Further, there were teachers and thought. 30. In this context, the decision of Gujarat High Court in the case of Gujarat State Co-operative Union (supra), whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purpose of profit. If there had been any motive of profit, the revenue would have raised the objection, but no such objection has been raised. In light of the above, the ratio of the decision is not applicable to the assessee's case. The reliance of the revenue on a few words from the judgment taking out of context is misplaced. 34. Therefore, in view of these facts and circumstances and as our discussion above, the assessee is entitled exemption under section 10(22) of the Income-tax Act, 1961 as assessee's aims and objects are to impart education and not to earn any profit. Therefore, the text of section 10(22) is fully in favour of the assessee. 35. As we have already stated that assessee was enjoying status of educational institution for the purpose of exemption under section 10(22) and the assessment under section 143(3) has been completed wherein the exemption was accepted. The exemption was granted upto the assessment year 1987-88 but in these four years the exemption was not granted. We are not able to understand that why the Assessing Officer denied the exemption. There is no material change in the facts of the earlier year or in the facts of these four years. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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