TMI Blog2016 (5) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... d recognized A perusal of the finding arrived at by the CIT(A) makes it clear that the details of the various courses conducted by the assessee alongwith rules and regulations adhered to by it depicting its operating procedures were all considered and examined in extenso and neither these findings have been upset in the present proceedings nor anything upsetting these has been referred to by the Revenue in the Remand Report filed by the AO before the CIT(A). We further find that the objections of the AO that the courses conducted by the assessee do not have recognition from the Govt. and further that there is no regulatory Authority to exercise check on its fee structure is no longer a valid objection as not only considering the aforesaid decision but also considering the approvals/recognition of sector specific competent Authority like DGCA at the national level and IATA at the global level who are presumed to have given their giving approvals as per industry standard requirements by way of their Agreements/approvals etc on a year to year basis after due care and diligence, considering the adherence of standards and requirements to be met in the industry specific skill/quali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing covering specialized skills in the field of Marketing, Administration and Day to day operational Management. 3.4. To introduce training and update existing Travel Tourism Industry professionals, New Entrants and Young Graduate as well as Undergraduate Aspirants on Computerized Operations of the Global travel I tourism industry . 3.1. In the scrutiny proceedings, the AO required the assessee to justify that the activities were covered within the meaning of education as per the definition of charitable purposes contained in Section 2(15) of the Income Tax Act 1961. The triggering factor for this query was the fact on record that the assessee had provided coaching / training for the period under consideration for which purposes a sum of ₹ 70,36,300/- had been received. The coaching/training was stated to be provided for courses like computer reservation and automation, IATA Foundation, certificate course in travel tourism, 1 year diploma in aviation, IATA Cargo, IATA GDS Fares Ticketing , tally, DGR etc. Accordingly the assessee was also required to required to address whether the courses so conducted were recognised . 3.2. The following extracts from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi Young Men's Christian Association [YMCA] under its Human Potential development Programme. These courses are being offered to the YMCA sponsored students at a subsidized fee. Tally course is being offered by BESTT as an authorized Tally Academy ..... The Tally course educates the students about the computerized accounting which is widely being used in the travel agency business. From the above explanation it is evident that the courses conducted by the society require a minimum eligibility criteria for joining, follow a definite and scientific method of imparting knowledge which include mandatory attendance in classes that are being conducting by trained faculty in time bound schedule before taking up examination. The course may not be presently approved by a government regulatory authority in the field of education as the same is still to form a part of regular college curriculum as the infrastructure required to conduct these courses is not there but as the demand for professionals in the field of travel and tourism grows this field I will get the due recognition . 3.3. Since the courses admittedly were not accredited by UGC/Secondary Board, etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iding training to the students. Accordingly in furtherance of its aims it conducted customized Diploma programmes of one year duration and Certificate programmes of shorter duration aimed at providing not only techno managerial knowledge and skills, development of personality but also cross cultural orientation. As an IATA authorized training centre it was submitted it not only was approved by IATA but also Director General of Civil Aviation (DGCA) and it had been imparting training at a very highly subsidized fee, to young men and women in the field of travel and tourism in association with the following:- 1. Delhi Tourism and Transport Development Corporation s Institute of Tourism Travel Management (Delhi Chapter), Chankyapuri, New Delhi 2. Miranda House, University of Delhi 3. Delhi University, Campus of Open Learning, Keshavpuram Centre, New Delhi 4. YMCA, Jai Singh Road, New Delhi 4.1. It was submitted that the conclusions have been drawn by the AO ignoring these facts and details explained before him and he has wrongly relied upon the decisions cited. Those decisions on facts, it was submitted were distinguishable and instead the issue was suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t April, 2002. The ld.CIT(A) takes note of the fact that the 12A exemption has not been withdrawn by the DIT(E) till date a fact not upset by the Revenue before us. This fact is also acknowledged by the AO in his order at page 1 para 2. It is not the case of the Revenue that the activities of the society are found to be contrary to the main objects of the society and in fact we find are as per its memorandum extracted in the assessment order (which has been reproduced in the earlier part of this order). The assessee has consistently put up a claim that it is a charitable society trust and relying upon the judicial precedent as considered by the aforesaid decisions of the Hon ble Allahabad High Court namely Oxford Academy for careers Development and the decision of the Delhi High Court in the case of Delhi Music Society has submitted that there is a pre-defined training program which is strictly adhered to. The requisite information and details have specifically been called for by the First Appellate Authority and have been filed an elaborate mention to these facts at page 14 in the detailed finding on fact arrived at in page 12 to 21 of the impugned order has been taken into cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not the sense in which the word education is used in cl.(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. 9. The import and the context of the above observations of the Hon ble Apex Court came to be considered by the Hon ble Gujarat High Court in the case of Gujarat State Co-operative Union vs. CIT reported in 195 ITR 279 (Guj.) and we shall be referring to these observations in greater detail subsequently for the present, we need to refer to some material facts with which the Hon ble Gujarat High Court was seized of. In the facts of the case the activities conducted by the Gujarat State Co-operative Union consisted of Higher diploma in co-operation (condensed), Diploma in land development banking; Certificate course in Co-operative credit and banking Certificate course in Cooperative credit and banking etc. consisting of 18 weeks, 12 weeks, 10 weeks and 24 weeks duration respectively. The activities of conducting of seminars and running four cooperative training centres; conducting special courses for employee of urban cooperative banks, district co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed above, the word schooling also means instructing or educating. It, therefore, cannot be said that the word education has been given an unduly restricted meaning by the Supreme Court in the said decision. 11. Reverting to the facts of the present case, the AO is found to have referred to the activities in the assessment order. However, he has not cared to factually examine the same. Satisfied by enumerating the activities, he has failed to examine the supporting facts and requirements qua the specific courses; duration of the course; the course fee and the assessee s explanation and instead of examining and considering the same which evidently was filed and made available he has instead jumped to the conclusion based on decisions whose facts also he failed to consider. The specific courses conducted by the assessee admittedly pertaining to travel and tourism industry were having the approval of Director General, Civil Aviation Department of the Government of India and meeting specific requirements and following a course program as approved and recognized by the following:- Dangerous Goods Regulations - Course approved by DGCA Diploma in Aviation Travel Indus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essful candidates/students. As regards Certificate Course in Travel Tourism in collaboration with Miranda House the course content is set Miranda House, education and training is provided by the appellant, examination paper is set by appellant, examination is conducted by appellant and the Diploma Certificate approved by Miranda House (College affiliated to Delhi University) is awarded by both Miranda House and the appellant to the successful candidates/student .The examination procedure being followed by the appellant is in fact more comparable to a normal schooling activity. Out of various candidates/students registered with the appellant for various courses conducted by it, it is seen there are some students who have been unsuccessful in the examinations. These students then re-appeared for re-examination with the appellant in the next term of the relevant course. A proper attendance record is being, maintained by the appellant for all the students as well as the teachers and visiting facilit : The appellant has also set operating standards for the various courses conducted by it. These operating standards clearly ear mark for each course the periodicity, examination schedule, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s would be taught in groups: that there would be workshops/lecture demonstrations arranged for the benefit of the students from time to time and that attendance in such workshops would be compulsory, that students who report late by more than 20 minutes may be marked absent and so on. There is also a rule that the students; who are irregular in attending the classes or absent them elves frequently for long periods without prior intimation, would be removed from the rolls and if any of the students are found lacking in application or discipline, they are liable to be terminated by the Principal. 12. It is seen from the above that the petitioner is being run like any school or educational institution in a systemic manner with regular classes, vacations, attendance requirements, enforcement of discipline and so on. These provisions in the rules and regulations satisfy the condition laid down in the judgment of the Hon'ble Supreme Court, Sole Trustee, Loka Sikshana Trust, cited (supra) that there should be a process of training and developing the knowledge, skill, mind and character of the students by normal schooling . It cannot be doubted that, having regard to the manner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit such income is entitled to exemption under Section 10(22), whether or not-such educational institution is affiliated to any university or college or board If the contention of the Revenue is accepted. then many of the societies running institutions solely for imparting education would not get the benefit of Section 10(22). Education as envisaged in Section 10(22) may be imparted in a school or college or institution which may or may not be affiliated to, or recognized by, a university or board. This judgment takes care of the objection of the prescribed authority that the petitioner is not affiliated to, or recognized by any university or board in India and that it merely awards certificates or grades which are issued by the Trinity College and Royal School of Music, London. Since Section 10 (23C)(vi) also uses the same language as Section 10(22), the same principle should govern the interpretation of that provision also. 16. We further find that the AO in his Remand Report in the face of the claims of the assessee before the CIT(A) has again placed reliance upon the decision of the Hon ble Gujrat High Court in the case of Saurashtra Education Foundation vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering the decision of the ITAT in the case of Surat City Gymkhana vs. ACIT reported in 76 ITD 127 (Ahd.) which has been upheld by the Hon ble Gujarat High Court and stands affirmed by the Hon ble Apex Court in the case of ACIT vs. Surat City Gymkhana (SC), we find that it is also worth referring to at this juncture. Thus, reference to the following discussions from the order of ITAT in the facts of that case would be appropriate in the facts of the present case at this stage in order to further fortify the view taken:- 25 ..............It is further to be noted that the CIT, Surat has registered the assessee trust on 4-1-1984 under section 12A. Section 12A provides that for claiming exemption under section 11 it is mandatory that an application for registration of the trust in prescribed Form No. 10A is filed before the CIT along with the instrument under which the institution is established accompanied with the accounts of the institution relating to such prior year or years for which such accounts have been made up. The grant of registration by the CIT under section 12A does not constitute an empty formality which is to be completed in a routine and mechanical fashion by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supra) relied upon by the Id. counsel. The decisions of the Allahabad High Court in Fifth Generation Education Society's case (supra) and Calcutta High Court in CIT v. Ganapatra.Sagarmal [J990} 182 ITR 89 have taken similar view in the matter. In view of the aforesaid discussion, we feel that after allowing registration under section 12A it is not for the Assessing Officer to deny exemption under section 11 on the ground that the assessee Association is not charitable in nature. 26. Regarding the two decisions cited by the Id D.R. viz.Fifth Generation Education Society's case (supra) and Shantagauri Ramniklal Trust's case (supra), we find that both these decisions rather support the view being taken by us here and the reliance placed by the learned DR is entirely mis-conceived. In Shantagauri Ramniklal Trust's case (supra) the Hon' ble Gujarat High Court held that whenever application is made for registration under section 12A, it is for the CIT to make an inquiry and reach conclusion regarding the charitable nature of the assessee trust. Obviously once the conclusion has been reached by the CIT that the objects of the trust are charitable and the CIT proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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