9911796707
TMI Blog2015 (5) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... red in holding that the proviso to Sec. 2(15) of the Income Tax Act 1961 is applicable to the assessee. 2. That the ld. Assessing Officer has erred in not allowing exemption u/s. 11 and 12 of the Income Tax Act, 1961 even though the assessee is a Registered Charitable Trust u/s. 12A of the Income Tax Act, 1961. 3. That the ld. Assessing Officer has erred in not allowing the benefit of accumulation of income u/s. 11(1)(a) of the Income Tax Act, 1961. 4. That the activities of the assessee being in the nature of education, medical relief and relief to the poor are not covered by the proviso to sec 2(15) of I.T. Act and thus the assessment at a income of Rs. 8,56,660.00 (As reduced vide order u/s. 154 dated 12.03.2012) made to the income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Aggrieved by the stand so taken by the Assessing officer, assessee carried the matter in appeal but without any success. While dismissing the grievances of the assessee, learned CIT(A), inter alia, observed as follows : "In the instant case activity as claimed by appellant in the nature of relief to the poor, education and medical relief has been found to be totally misleading the facts, because AO has clearly demonstrated that appellant is not running any educational institution nor imparting any education, rather the appellant is providing legal and technical services to different corporate entities and charging fee from them. So, activities of the appellant are not in the nature of education. Like-wise providing medicines and paying f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the junior professionals are getting very useful legal education and hands on experience. However, in making these submissions, leaned counsel is apparently unmindful of the observations made by Hon'ble Supreme Court in the case of Sole Trustee Lok Shikshan Trust vs. CIT (101 ITR 234) wherein their Lordships have, inter alia, observed as follows : "The sense in which the word "education" has been used in section 2(15) is the systematic instruction, schooling or training given to the young in preparation 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 know ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... soever altruistic be the motive, and it cannot be treated as an educational or charitable activity. 9. We have also noted that the carrying out of the aforesaid business activity is not incidental to achievement of the main objectives of the trust and, therefore, profits and gains of this business activity cannot be covered by the scope of section 11(4A) either. Just because the profits generated by a business activity are used also for charitable activities does not, by itself, entitle the business profits to be exempted from tax under section 11(4A). 10. In view of the above discussions, as also bearing in mind entirety of the case, we approve conclusions arrived at by the CIT(A) and decline to interfere in the matter. 11. In the resul ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
