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TMI Blog2013 (1) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... ered under the provision of section 2 (15) of the Income Tax Act, 1961 and therefore the Appellant is not entitled to benefits u/s 11 of the Income Tax Act, 1961. 2. The Learned Commissioner of Income Tax (Appeals)- XXI, Ahmedabad has erred in law as well as on facts of the case by confirming the action of the Learned Assessing Officer holding that the Appellant is not an educational institution eligible for exemption u/s 10(23C) (iiiab) of the Income Tax Ac, 1961." 3. The assessee is a Trust filed its return of income on 19-08-2009 along with auditor's report u/s 12A (b) of the Act in form No.10B. The case was subsequently taken up for scrutiny and order u/s 143(3) of the Act was passed on 22-12-2011 wherein the assessee's claim of exemption u/s 10(23C) (iiiab) of the Act was denied. Further, the learned AO held that the activity of the assessee does not fall within the meaning of "Charity" as envisaged under the provisions of section 2(15) of the Act and thereafter proposal was submitted to Director, Income Tax (Exemption), for review of the exemption granted u/s 12AA of the Act. Subsequently the learned AO made addition to the extent of ₹ 3,77,80,429/- viz., on account o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PITA/2011-12 dated 02-03-2012 has held that there was no justification for action u/s 12AA (3) of the Act and the proceedings under the relevant sections for cancelling the registration are dropped accepting the submissions of the assessee listed as under: (i) The institution was formed by a Government resolution with effect from 01-10-2004 and registered as a Society under the Societies Registration Act, 1860 and also under the Bombay Public Trust Act with the Deputy Charity Commissioner, Ahmedabad whereby registration u/s 12AA of the Act was granted with effect from 01-10-2004. (ii) Earlier the institution was functioning as a part of Department of the Government of Gujarat before it became as independent Institution vide its registration under the Societies Registration Act, 1860. (ii) The Society continued to receive financial and other forms of assistance from the State Government and the Central Government. (iv) The objects of the Society is to carry out programs of imparting pre-service, education and training to Government Officers and other training programs at different stages in the Career Progression of Government Employees. The Institute also conducts programs equi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on in normal parlance. H'ble Apex Court has in the case of Sole Trustee Loka Shikshana Trust Vs Commissioner of Income Tax [1975] 101 ITR 234 (SC) has defined 'Education' as under: "Per Khanna J. 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 is preparation for 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. What education connotes in that clause is the process of training and developing the knowledge, skill, mind and character of the students by normal schooling." The claim of the assessee that it is an educational trust is not acceptable and hence rejected." 6.2 Further, the learned CIT(A) took a view that the moot question which is to be decided is whether the activity of the assessee could be termed as "educational" in the light of the various decisions rendered by the judiciary forum. Further, relying in the decision of the case Lok Shikshan Trust Vs CIT 110 ITR 234, CIT Vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o resource persons at the local State, National and International levels and to enter into contract with them for designing and conducting courses and providing other inputs. (ix) To mobilize funds/resources from diverse sources for training skill, up gradation and human capital development in pursuance of the stated objectives. (x) Subject to the rules of State Government, to provide facilities for sabbatical to the members of the All India Services serving in the State, the State Government Employees and other employees of collaborating Training Institutions of State Government. (xi) To seek and also to establish relations of mutual cooperation with Institutions of State, National and International repute for fulfillment of the above vision and objectives. (xii) To establish and develop information tools for research training and to promote exchange of information among the participating organizations by establishing interactive website for the same among other things. (xiii) To bring about the publication of 'NIRNAY' or any other news letter, books, journals, reports, Occasional papers, Study Reports etc. in furtherance of the broad objective of the Organization. (xiv) To ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner of Training (Ex-officio), Sardar Patel Institute of Public Administration Member 11) Director OR its representative Indian Institute of Management, Ahmedabad Member 12) Joint Secretary/Deputy Secretary(ARTD) Member 13) Executive Director OR its representative Ahmedabad Management Association Ahmedabad Member 14) Director or its representative Gandhi Labour Institute, Ahmedabad Member 15) Vice Chancellor of a University of Vice Chancellor of a University of Member 16) Director or its representative Sardar Patel Institute of Social and Economic Research, Ahmedabad Member 17) Financial Adviser (Finance Department) Member 18) Additional Commissioner Sardar Patel Institute of Public Administration Member Secretary Seven eminent persons to be nominated by the Government to represent the interest of the sectors such as Agriculture, Rural Development, Forestry, Fisheries, Animal Husbandry, Business Industry, Commerce and Trade, Banking and Insurance, Public Utilities such as transport, energy and communication, public works, Social Welfare, Public relations, Regulatory Services such as Revenue, Legal Police Education, Municipal bodies etc. These person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive Council. SECRETARY: (49) An officer namely Joint Director/ Joint Commissioner (Administration) of the Institute shall be appointed as the Secretary of the Institute by the Board of Governors. He shall function as the ex-officio Secretary to the Board of Governors, the Executive Council and such other committees and sub-committees as may be constituted by the Board of Governors and the Executive Council respectively." 6.3 From the above, it is evident that the patron of the society consists only of the High Ranking State Government Officials and persons nominated by the State Government. The learned AR further pointed out that the entire funding of the society was granted by the State Government and Central Government which could not be proved otherwise by the revenue. The learned AR also informed the Bench that all the revenue received by the society was from the government authorities and on examination of these facts the same could not be disputed. Moreover, the learned DIT (Exemption) has also clarified the legal position vide his letter dated 02-03-2012 in proceedings No.DIT (E)/ABD/SPIPA/2011-12/1709, that the activities conducted by the society are in the nature of imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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