TMI Blog2010 (1) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... ctives of the trust that is to pride high quality, low cost books for the children, who have no access to the utter joy of a good read and to distribute/sell to them we have been publishing our own titles. We are utilizing the donations received from the donors for the publication of titles. The development cost of one title includes the expenses of author payment, illustrator payment, reviewer payment, editor payment, proof reader payment, translator payment, DTP expenses, printing of books (labour charges), paper charges and transportation charges of books". 3. According to DIT(Exe.) the aforesaid activity would not qualify under the 'education' limb of the definition of Charitable purpose in sec.2(15) of the IT Act, in view of the Apex Court decision in 101 ITR 234, it would rather fall under the 'general public utility'. According to DIT(Ex.), the assessee's activity involve in carrying on of an activity in the nature of trade/commerce/business wherein books are sold for consideration which is not a charitable purpose in view of proviso to sec.2(15) of the IT Act which is reproduced as under; "Charitable purpose" includes relief of the poor, education, medical relie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the assessee as during the relevant years it had income exclusively from publication and selling of text books to the students. The Appellate Tribunal, by a majority held that the assessee was entitled to the benefit of the exemption. However, the High Court on appeal held that it was not so exempt, particularly since the assessee did not solely impart education and its income during the relevant years was only from publishing and sale of text books. On appeal to the Supreme Court: Held, reversing the decision of the High Court, that the assessee was entitled to the exemption u/s 10(22). The assessee was a Government company and it was controlled by the State of Assam; the Central Board of Direct Taxes had granted similar exemption by letter dated August 19, 1975 to the Tamil Nadu Text Books Society which performed activities similar to those of the assessee; and the Central Government had by letter dated July 9, 1973 stated that all State controlled Educational Committee/Boards had been constituted to implement the educational policy of the States and consequently they should be treated as educational institutions (matter remanded)". 5. The learned AR drew our attention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng issued in that regard. Bihar State has about 70,000 primary schools where 589,87,125 students are studying in classes 1 and 2 for whom about 2,02,540 sets will be required. A detailed count has been made in this regard which is enclosed as Annexure A with this letter. It is being reiterated that the books will be purchased only by the School Education Committees and the payment will be made by them at the point of purchase. In every district at a School or another appropriate place, a stall will be put up by you. Detailed directives to each district office have been sent from this office under letter no.5645 dated 29-10-2008 (Annexure B) and a copy has been emailed to you. It has been estimated that a total of 2,02,540/- books will be needed in the whole of Bihar and these will be sold through the stalls put up by you. In the deliberations on 24-10-2008, it was decided that a review meeting will be held a week after melas are started where the future strategy will be decided based on the experiences of the first week. In the light of this it seems necessary that the books are printed in phases. In the first phase printing 50% of the estimated number will be best. You are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of earning profit but to facilitate poor students in their primary education. The ratio of Hon'ble Supreme Court in the case of Sole Trustee, Loka Shikshana Trust vs CIT reported in 101 ITR 234(SC) held as under: "We are in agreement with the view expressed in Tribune case to the tent that we think that a trust such as the one considered there does not just like the trust before us, fall within the category of education, as such, mentioned in the statutory elucidation of charity, which was repeated the 1961 Act, with an added qualification of the last and widest category. Although the term 'education', as used in section 2(15) of the Act, seems wider and more comprehensive than education through educational institutions, such as universities, hose income is given an exemption from income-tax separately under section 10(22) provided the educational institution concerned does not exist for "for purposes of profit", yet it seems to me that the educational effects of a newspaper or publishing business are only indirect, problematical, and quite incidental so that, without imposing any condition or qualification upon the nature of information to be disseminated or material to be pu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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