9911796707
TMI Blog2016 (1) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... nd hence, exemption u/s. 11 cannot be granted. He further held that mere grant of registration u/s. 12A does not entitle the Assessee for exemption u/s. 11 and that the real activity of the society has to be looked into. 3. The alternative claim of the society that the society is governed by the principle of mutuality, and also by Section 10(23C) was rejected. The income of the Assessee was determined at Rs. 2,37,819/-. 4. Aggrieved, the Assessee carried the matter in the Appeal. The Ld. First Appellate Authority has held that the Assessee was not engaged in "Education", in view of the interpretation to the term 'Education' in the judgment of Supreme Court in case of Trustee Loka Shikshana Trust vs. CIT 101 ITR 234 and other decisions. . The Ld. CIT(A) held that the Assessee is not engaged in the activity of providing education as defined u/s. 2(15) of the I.T. Act and therefore, the aims and objectives of the Trust fall under the category of "advancement of any other object of general public utility" and that the proviso to 2(15) is attracted. In view of the fact that the receipt of the Assessee are above Rs. 10 lacs from the activities which are in nature of business, the profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucation with Indian ideals towards life and to bring other schools under its guidance and to guide, take care and control in order to bring homogeneity in their activities and improvements with coordination. c) To inculcate patriotism, discipline, self-reliance and dignity towards labour among the students and to do all necessary activities for their moral development. d) To do all necessary activities to achieve the objectives of the society and compile, distribute and publish necessary literature and material and to form sub-committees. e) To take donations and collect funds and provide assistance for the fulfillment of the objectives of the society. f) Activities of the society will be public and for general welfare and all Indians, irrespective of religion, cast, section, language or state, will be the beneficiaries of the society." 10. The activities of the Society are listed out as follows:- 1) Principals Conference:- . Principals conference of the affiliated institutions was held from 24th July 2009 to 16th July 2009 at Baleram Brijbhushan Saraswati Shishu Mandir Inter College, D Block, Shastri Nagar, Meerut. List of participants enclosed. (Page No. 6 to 7of Pap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by SCHOOL GAMES FEDERATION OF INDIA. d) A few photographs of events are enclosed. (Page no. 27 of Paper Book) 8) Personality Development Camp:- A personality development camp of students from class 6th to 8th from the affiliated institutions was organized at Lala Jadish Prasad Saraswati Vidya Mandir Inter College 'Jansath road, Muzzaffarnagar (UP) from ih june, 2009 to 21st June 2009. The camp was conducted in association with Surya Foundation, New Delhi. 9) Science Fair and Quiz Programme:- a) Society annually organizes a science fair and quiz programme for the students of affiliated institutions. b) During the year it was organized at Dayawati Deewan Singh Shukl Saraswati Vidya Mandir, Inter College, Gulawati Road, Sikandrabad, District Bulanshahar (UP), from 31st October, 2009 to 1st of November, 2009 in which 483 students participated and 31st October, 2009 to 1st of November, 2009 in which 483 students participated and 66 students were selected for regional competition. c) The selected students were taken to regional/national science fair and quiz programme organized by Vidhya Bharti Akhil Bhartiya Shiksha Sansthan. List of category wise participants enclo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious Courts including the Hon'ble Supreme Court of India is discussed below. "The expression 'education' has not been defined under the provisions of Income Tax Act. The Hon'ble Supreme Court in the case of Lok Shikshana Trust (supra), has been pleased to explain the meaning of the word 'education' in the context of section 2(15) of the Act. As per this decision education is the process of training and developing the knowledge, skill, mind and character of students by schooling by way of systematic instruction, schooling or training. The Hon'ble Delhi High Court in the case of Delhi Music Society vs. DGIT (supra) has been pleased to hold that since the assessee society was teaching and promoting all forms of music and dance , western, Indian or any other and was run like any school or educational institution in a systemic manner with regular classes, the same therefore meet the requirement of an educational institution within the meaning of section 10(23C)(vi) of the Act. In the case of ITO vs. SRM Foundation of India (supra) the Delhi Bench of the Tribunal, where the assessee was engaged in spreading the system of transcendental meditation (TM) has held that irrespective of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fee, cess or other consideration and if for fee, cess or consideration the aggregate value of the receipts from the activities under (ii) and (iii) should not exceed the amount specified in the second proviso. The earlier test of business feeding or application of income earned towards charity because of the statutory amendment is no longer relevant and apposite. It is evident from Circular No. 11 of2008 that a new proviso to section 2(15) of the Act is applicable to assessees who are engaged in commercial activities, i.e., carrying on business, trade or commerce, in the garb of "public utility" to avoid tax liability. The legal terms "trade, commerce, or business" in section 2(15) mean activity undertaken with a view to make or earn profit. Profit motive is determinative and a critical factor to discern whether an activity is business, trade or commerce. Business activity has an important pervading element of self-interest, though fair dealing should and can be present, whilst charity or charitable activity is the anti-thesis of activity undertaken with profit motive or activity undertaken on sound or recognised business principles. The quantum of fee charged, the economic status ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
