Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s. Information Systems Audit and Control Association, Chennai Chapter Versus Deputy Director of Income Tax (Exemptions) -1, Chennai.

Entitlement to claim exemption u/s. 11 - examination for the course of certified information system auditor and also collected as seminar fees from the participants - Held that:- The course conducted by the assessee may be a source of acquisition of some knowledge by the respective students/persons. But such a course or acquisition of knowledge by the students at the class conducted by the assessee for conducting review and courses for helping aspiring members/members in preparing for CISA and C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

erefore, it is not entitled for exemption u/s.11 of the Act and this income of the assessee is to be assessed as business income under the head ‘AOP’ and it is to be assessed after giving all deduction available o the assessee under the head ‘'Business income”. However, we make it clear that if the cost of fixed assets has been claimed as application of income while claiming exemption u/s.11 of the Act under Chapter-III of the Act in earlier assessment years, the assessee cannot claim depreciati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the order of the Learned Commissioner of Income Tax(A)-17, Chennai dated 30.03.2015 pertaining to the assessment year 2009-10. 2. The assessee has raised the following grounds. 1. For that the order of the Commissioner of Income Tax (Appeals) is contrary to law, facts and circumstances of the case to the extent prejudicial to the interest of the appellant and at any rate is opposed to the principles of equity, natural justice and fair play. 2. For that Commissioner of Income Tax (Appeals) faile .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

by the appellant are charitable in nature and fall within the ambit of charitable purpose as per section 2(15). 6. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the depreciation of ₹ 1,52,1 73/- claimed by the appellant trust was an application of income. 3. The brief facts of the case are that the assessee trust is registered u/s.12A(a) of the Income Tax Act vide proceedings in C.No.2/(100)/2000-01 dated 25.08.2000 and filed its return of income for assessmen .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

stantiate the claim of exemption u/s.11 of the Act. After examining the submissions of the assessee, the ld. Assessing Officer was of the opinion that the objects of the assessee fall under the residuary clause, i.e. advancement of any other object of general public utility and provisions of the section 2(15) are clearly attracted. Further the ld. Assessing Officer opined that the principle of mutuality is not applicable to the assessee s case as the trust deals with both members and non-members .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssee is in appeal before us. 4.1 The ld.A.R submitted that the main activities of the assessee trust are conducting review and courses for helping aspiring members/members in preparing for CISA and CISM certification conducted by the parent body, ISACA, USA and also conducting monthly professional education meetings wherein professionals address the participants for sharing knowledge and experience on methodologies, emerging concepts, skills updation etc. In addition to it, the assessee trust is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng education in the areas of security, control, audit and research in the Information Technology Environment. He relied on the following decisions. 1.DIT (Exemptions) v The Chartered Accountant Study Circle_[2012]_70 DTR 219_(Mad) 2. The Chartered Accountant Study Circle v ITO in ITA No.l97lIMds/2010 3. The Institute of Chartered Accountants of India and And v DGIT (Exemptions) [2013] 90 DTR 161 (Del) 4.Circular No.11 of 2008 dated 19 December, 2008 5. India Trade Promotion Organization v DOlT ( .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

198_ITR 598_(Guj) 13. CIT v Raipur Pallottine Society [1989] 180 ITR 579 14. CIT v Institute of Banking Personnel Selection [2003] 264 ITR_110_(Born) 15. DIT (E) v Framjee Cawasjee Institute [1993] 109 CTR (Born) 463 16. DDIT v Lakshmi Saraswathi Educational Trust in ITA No.452 / Mds / 2014 for the AY 2010-11 - Chennai ITAT 17. Apollo Hospitals Educational Trust v DCIT in ITA No.2090 / Mds / 2012 for the AY 2008-09 - Chennai ITAT 18. Services Association of Seventh Day Adventists Pvt Ltd v ITO f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ITAT 23. ITO v KGISL Trust in ITA No.1813 / Mds / 2012 for the AY 2009-10 - Chennai ITAT 24. CIT v Rao Bahadur Calavala Cunnan Chetty Charities_[19821_135_ITR 485_(Mad) 25. Devi Karumariamman Educational Trust v DCIT (Exemptions) [2015] 60 taxmann.com 439 (Madras) 26. ITO v The GRD Trust in ITA No.2537 / Mds / 2014 for the_AY 2010-11_- Chennai_ITAT 4.2 The Departmental Representative relied on the order of CIT. 5. We have heard both the parties and perused the material on record. Sec. 11 of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uot; includes relief of the poor, education, medical relief and the advancement of any other object of general public utility." As per Finance Act, 2008, the said provision was amended adding a 'proviso' w.e.f. 1st April, 2009 as follows : "Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business or any activity of rendering any servi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or business in the activities pursued by the assessee and will not take it outside the purview of charity and hence, that the proviso added to sec.2(15) of the Act, is not at attracted to the case in hand. He also submitted that the statute, as it stood earlier, had clarified the charitable purpose mentioned in sec.2(15) of the Act, by the words "not involving the carrying on of any activity for profit". By virtue of the existence of these clarifying words, if there was any element of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

quot; of the Minister for Finance in the Finance Bill 2008, reported in (298 ITR (St.) 33 at page 65 : "180. Charitable purpose includes relief of the poor, education, medical relief and any other object of general public utility. These activities are tax exempt, as they should be. However, some entities carrying on regular trade, commerce or business or providing services in relation to any trade, commerce or business and earning incomes have sought to claim that their purposes would also .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

charity in India is wider, simultaneously adding that, by virtue of the amendment, the position that existed prior to 1st Feb., 1984 has been brought back and that is all. This however will not tilt the balance in any manner in the case of the assessee so as to take the activities outside the charitable purpose, particularly in view of the fact that activities of assessee trust will not constitute any trade or business. According to the ld. AR, to perform charity, income is inevitable and conte .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ivity. In other words, it was contended by the ld. DR that the assessee carried on activities in a business oriented manner, it will definitely come within the fourth limb of the amended sec.2(15) of the Act, where the prohibition of activity in the nature of trade, commerce or business for any activity of rendering service or any other consideration, irrespective of the nature of the use or application or retention of the income of such activity is specified and hence, not entitled to any exemp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

en given exemption under section 11 of the Act and the position available after amendment to section 2(15) of the Act, brought into effect from 1st April, 2009. Yet another important aspect to be noted in this context is that, after the amendment by incorporating proviso to section 2(15), the 4th limb as to the advancement of "any other object of general public utility" will no longer remain as charitable purpose, if it involves carrying on of : (a) any activity in the nature of trade, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

entirely on a different pedestal, with regard to the service in relation to the trade, commerce or business mentioned therein. To put it more clear, when the matter comes to the service in relation to the trade, commerce or business, it has to be examined whether the words "any trade, commerce or business" as they appear in the second limb of cl. (b) are in connection with the service referred to the trade, commerce or business pursued by the institutions to which the service is given .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n relation to any trade, commerce or business ..................". As it stands so, giving a purposive interpretation to the statute, it may have to be read and understood that the second limb of exclusion under cl. (b) in relation to the service rendered by the assessee, the terms "any trade, commerce or business" refers to the trade, commerce or business pursued by the recipient to whom the service is rendered and in such circumstances, the activities carried on by the assessee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ay that the assessee is carrying on 'advancement of any other object of general public utility'. When that is the case, the assessee is hit by the proviso given under section 2(15). The proviso reads that 'advancement of any other object of general public utility' shall not be a charitable purpose, if it involves carrying on any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business for consid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he business is incidental to the attainment of the objectives of the assessee and separate books of account are maintained by such trust or institution in respect of such business. In the present case, there is no dispute on the fact that the assessee is carrying on the activities in commercial manner. But, the crucial question is whether running of the activities is a business incidental to the attainment of the objectives of the trust or not. By any stretch of imagination, it is not possible t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nother source for incidental activities. In the present case, it was not possible to conclude that running of business in the form of activity is incidental to carrying on of main objective of the assessee-trust and it is the main business of the assessee. Therefore, the assessee is not protected by the provision stated in section 11 (4A), either. 6. Therefore, looking at the activities carried on by the assessee, we fully agree with the findings of the AO. In the present case, it is an admitted .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessee is carrying on the charitable activities. 7. Further, the Apex Court in the case of Sole Trustee, Loka Shikshana Trust vs Commissioner of Income-tax (1975) 101 ITR 234 (SC) had an occasion to consider this issue and the Apex Court found that all kinds of acquiring knowledge may not come within the term education . The Apex Court, in fact, has 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ms and zoos, you thereby 6 ITA No.486/Coch/2013 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ource of acquisition of some knowledge by the respective students/persons. But such a course or acquisition of knowledge by the students at the class conducted by the assessee for conducting review and courses for helping aspiring members/members in preparing for CISA and CISM certification conducted by the parent body, ISACA, USA and also conducting monthly professional education meetings wherein professionals address the participants for sharing knowledge and experience on methodologies, emerg .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e young is 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 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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. From the above judgment of the Apex Court it would be abundantly clear that the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as provided in section 2(15) of the Act. There should be a normal schooling by way of regular and systematic instruction. 10 ITA No.486/Coch/2013 10. The Patna High Court in the case of Bihar Institute of Mining And Mine Surveying vs C.I.T. (1994) 208 ITR 608 (Pat) held that mere conducting of classes for open university / distance education cannot be construed as charitable activity within the meaning of section 2(15) of the Act. The Patna High Court, after considering the judgment of the Apex .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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, in our opinion, 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 b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Manpower Service provider

News: Jaitley asks biz not to wait till last day to file GST returns

Circular: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg.

Forum: Construction of single unit bungalow

Forum: Input credit of gst paid on urd

Article: 20 Things You must know about E Way Bills in GST Law

Article: ‘DUTY DRAWBACK’ CANNOT BE EQUATED WITH ‘REBATE OF DUTY’

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version