TMI Blog2014 (1) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... regular and systematic instruction - Following Bihar Institute of Mining And Mine Surveying vs C.I.T. [1993 (12) TMI 50 - PATNA High Court] - The word “charitable” prefixing the word “institution” has to be given its full effect - It appears that one of the principal projects of the petitioner’s institution has the object of coaching and preparing the students for appearing in various examinations conducted by the Board of Mining Examination and / or MI (1) section (a)(b) and the said coaching of students in an institute is not, an imparting of education which can be said to be a process of training and developing knowledge and character of students by normal schooling - A coaching institute cannot be said to be an institution where normal schooling is done - The assessee cannot be considered to be an “educational trust” within the meaning of section 2(15) of the Act - It is not entitled for registration u/s 12AA of the Act - Decided against assessee. - I.T.A No. 486/Coch/2013 - - - Dated:- 20-12-2013 - Shri N. R. S. Ganesan (JM) And Shri B. R. Baskaran (AM),JJ. For the Appellant : Shri Baby Joseph / Shri Andrew Kuruvilla For the Respondent : Smt. Latha V. Kumar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Bihar Institute of Mining And Mine Surveying vs CIT (1994) 208 ITR 608 (Pat). 5. We have considered the rival submissions on either side and also perused the material available on record. The Commissioner rejected the application of the assessee for registration u/s 12AA of the Act on the ground that the activity of the trust proposed in the trust deed is intended as an associate business of the existing business of the trustees in the name and style of Bethsaida Hermitage Tourism (P) Ltd. Incidentally, the Commissioner has also observed that the trust has no building of its own and the managing trustee has advanced a sum of Rs.4,83,051 which was claimed to be a loan at the first instance. The Commissioner has also found that the managing trustee and trustee are drawing a salary of Rs.12 lakhs and Rs.6 lakhs, respectively from Bethsaida Hermitage Tourism (P) Ltd in their capacity as directors. At paragraph 4 of the impugned order, the Commissioner has reproduced the rectification made in the trust deed enabling the trustees to sell the trust properties. 6. It is not in dispute that the assessee is claiming registration u/s 12AA as educational trust. For the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nes, see pictures, visit art galleries, museums and zoos, you thereby add to your knowledge. Again, when you grow up and have dealings with other people, some of whom are not straight, you learn by experience and thus add to your knowledge of the ways of the world. If you are not careful, your wallet is liable to be stolen or you are liable to be cheated by some unscrupulous person. The thief who removes your wallet and the swindler who cheats you teach you a lesson and in the process make you wiser though poorer. If you visit a night club, you get acquainted with and add to your knowledge about some of the not much revealed realities and mysteries of life. All this in a way is education in the great school of life. But that is not the sense in which the word education is used in clause (15) of section 2. What education connotes in that clause is the process of training and developing the knowledge, skill, mind and character of students by normal schooling. 7. The course conducted by the assessee may be a source of acquisition of some knowledge by the respective students. But such a course or acquisition of knowledge by the students at the coaching class conducted by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for the work of life. It also connotes the whole course of scholastic instruction which a person has received. The word education has not been used in that wide and extended sense, according to which every acquisition of further knowledge constitutes education. According to this wide and extended sense, travelling is education, because as a travelling you acquire fresh knowledge. Likewise, if you read newspapers and magazines, see pictures, visit art galleries, museums and zoos, you thereby add to your knowledge. Again, when you grow up and have dealings with other people, some of whom are not straight, you learn by experience and thus add to your knowledge of the ways of the world. If you are not careful, your wallet is liable to be stolen or you are liable to be cheated by some unscrupulous person. The thief who removes your wallet and the swindler who cheats you teach you a lesson and in the process make you wiser though poorer. If you visit a night club, you get acquainted with and add to your knowledge about some of the not much revealed realities and mysteries of life. All this in a way is education in the great school of life. But that is not the sense in which the word ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... austive. 8. It is further seen that the Gujarat High Court also had an occasion to consider identical issue in the case of Saurashtra Education Foundation vs C.I.T. (2005) 273 ITR 139 (Guj). The Gujarat High Court found that all kinds of education would not fall within the meaning of section 2(15) of the Act. The training, instruction, etc. would result in grant of a diploma or degree by a university or a governmental agency. In the case before us, admittedly, the taxpayer is conducting coaching classes. Therefore, it cannot be treated as a charitable institution as provided in section 2(15) of the Act. This Tribunal is of the opinion that the taxpayer is not eligible for registration u/s 12AA of the Act. Accordingly, the order of the lower authority is confirmed. 8. We have also carefully gone through the judgment of the Patna High Court in Bihar Institute of Mining And Mine Surveying (supra). The Patna High Court has observed as follows at page 615 of the ITR: It is true that by reason of the Finance Act, 1983, the question as to whether any charitable institution is being run with a profit motive or not has lost its relevance. However, the word charitable prefixing th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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