TMI Blog2013 (11) TMI 1332X X X X Extracts X X X X X X X X Extracts X X X X ..... hich are noted by Hon'ble Apex Court such as traveler gaining knowledge, victim of swindler and thieves becoming wiser and visitor of night club adding to the knowledge of hidden mysteries of life etc. In the instant case, assessee is granting diploma also and as has been noted by the A.O. himself in the assessment order, more than 80% of the receipts are on account of continuing education, diploma and certificate programmes. All the four activities noted by the A.O. on this page of the assessment order are not like those activities which were noted by Hon'ble Apex Court to say that those activities cannot be covered by the term education in Section 2(15) - Issue involved in the present case is squarely covered in favour of the assessee by the judgement of Hon'ble Gujarat High court cited by the Ld. A.R. having been rendered in the case of Gujarat State Cooperative Union - Issue in dispute is decided in favour of the assessee and the activities of the assessee are in the field of education and the assessee is eligible for exemption u/s 11(1) – Decided in favor of assessee. - IT Appeal no. 159 (Ahd.) of 2013 - - - Dated:- 22-3-2013 - D. K. TYAGI AND A. K. GARODIA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... education Diploma Certificate Programs, (b) Management Development Programs, (c) Public Talks Seminars and (d) Workshops Conferences. Out of the total receipt of the assessee of Rs.411.91 lacs, the receipt on account of first programme i.e. continuing education diploma certificate programme, was to the extent of Rs.332.51 lacs and there was no receipt on account of public talk and seminars. Receipt on account of management development programme was of Rs.65.74 lacs and in respect of workshop and conferences Rs.13.66 lacs. The A.O. was of the opinion that on going through the nature of courses and duration, the resultant surplus for each activity, the activity of the assessee is not educational as defined by Hon'ble Apex Court in the case of Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234. By following this judgement of Hon'ble Apex Court, it was held by the A.O. that the assessee's activities are not educational and since the receipts are more than Rs.10 lacs, the provisions of Section 2(15) are applicable and, therefore, the assessee is not entitled for exemption. He refused to grant exemption to the assessee u/s 11 and assessed the income of the assessee at R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at this judgement is not applicable in the present case because it is explained by Hon'ble Gujarat High Court in the case of Gujarat State Co-operative Union v. CIT [1992] 195 ITR 279 that the observation of the Hon'ble Apex Court in the case of Sole Trustee, Loka Shikshana Trust (supra) were not intended to give a narrow or pedantic meaning to the word 'education'. It was also explained that Hon'ble Gujarat High Court has observed that Hon'ble Supreme Court has indicated that the word 'education' is not used in a loose sense so as to include acquisition of every knowledge by way of traveling, being victim of swindlers and thieves etc. and it is intended to apply the word education to schools, colleges and similar institutions and excluding any other media for such acquisition of knowledge. He also placed reliance on the tribunal decision rendered in the case of Sardar Patel Institute of Public Administration v. Jt. DIT (Exemption) in I.T.A.No. 2350/Ahd/2012 dated 04.01.2013 and he submitted a copy of this Tribunal decision. As against this, it was the first contention of the Ld. D.R. that this matter should go back to the file of Ld. CIT(A) for afresh decision because due to non a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Apex Court was this that the facts of that case were these that the assessee was engaged in publishing and selling activity of news papers and journals and it was the claim of the assessee that the assessee was educating the Kannad speaking people through news papers and journals. Under these facts, this observation was made by Hon'ble Apex Court that the sense in which the word 'education' has been used in Section 2(15) is the systematic instructions, schooling and resulting given to the minds preparing for the work of life. It is also observed by Hon'ble Apex Court that the word education has not been used in the wide and extended sense according to which every action of further knowledge constitute education. Hon'ble Apex Court observed that according to this wide and extended sense, traveling is education, because as a result of traveling you acquire fresh knowledge but this is not the sense in which the word education is used in clause 15 of Section 2. It was also observed that the word education in that clause is referring to the process of training and developing the knowledge, skill, mind and character of students by normal schooling. While perusing this judgement of Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upra), we are of the considered opinion that in the facts of the present case, it cannot be said that the activities of the assessee is no in the field of education and, therefore, not eligible for exemption u/s 11. 7. Now, we consider the applicability of the two judgements cited by Ld. D.R.:-- - The first judgement is the judgement of Hon'ble Gujarat High court rendered in the case of Sorabji Nusserwanji Parekh (supra). We find that in that case, this is the judgement of Hon'ble Gujarat High court that in the fact of that case, it can be said that the assessee was not an educational institution and thus, was not entitled to total exemption u/s 10(22) although its income would be exempt u/s 11(1) to the extent it would apply for its objects. There is a wide difference between the provision of Section 2(15) and 10(22) regarding the term education. In section 2(15), the term used is charitable purpose includes education whereas in Section 10(22), the term used is this that any income of a university or other educational institution listed/registered for education purpose and not for the purpose of profit. The facts of that case were that the society out of its income had given o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrying on educational activities as are being carried on by the assessee herein without imparting formal education and without being affiliated to or accountable to any authority. Such a trust can certainly be considered as qualifying for exemption under section 11(1)(a) read with section 2(15), but the term 'the educational institution' contemplated by section 10(22) is a narrower concept. Though 'educational institution' and the educational activities are closely interconnected: in section 11(1)(a), read with section 2(15) it is the activities which are in focus, whereas in section 10(22) both the institution and the activities are in focus. An educational institution under section 10(22) is therefore, more than a body carrying on charitable activities in the field of education as contemplated by section 2(15)." - From the above para of this judgement of Hon'ble Gujarat High Court, we find that it was held by Hon'ble Gujarat High court in that case that a trust who is carrying out educational activities without imparting formal education and was not affiliated to or accountable to any authority, can certainly be considered as qualifying for exemption u/s 11(1)(a) read with Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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