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TMI Blog2016 (6) TMI 979X X X X Extracts X X X X X X X X Extracts X X X X ..... cation for grant of registration. 4. The DIT erred in taking a very narrow meaning of "normal schooling" in rejecting its application for grant of registration. The appellant submits that the DIT ought to have taken a broad meaning of the term "education" contained in section 2(15) while considering its application for grant of registration. 5. The appellant submits that merely because preschooling is not recognized or regulated by any authority would not imply that the relevant activity cannot be regarded as "education" within the meaning of section 2(15). 6. The appellant submits that it had filed full details and explanation before the DIT in support of its application for grant of registration including the charitable nature of its objects and the DIT erred in rejecting its application. 7. The appellant submits that the order of the DIT rejecting its application for registration be set aside and the DIT be directed to grant registration to the appellant trust. 8. Each of the above grounds of appeal are independent and without prejudice to each other. 9. The appellant craves liberty to add, alter and/or amend the grounds of appeal as and when necessary." 2. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the Ld. Counsel that Ld. DIT has ignored the object mentioned in the trust deed wherein it is specifically provided that the trust has been constituted for the purpose of imparting high quality education to all types of students from any background by way of setting up schools, colleges and vocational training institutes in India. The preschool is just one of the activities; which has been taken up just in the beginning of the activities because, only little time had passed since date of constitution of trust when the application for registration was filed. It was further submitted on 'without prejudice' basis that in any case pre-schooling was also integral part of 'education' and cannot be and could not be seen in isolation from it. Ld. Counsel also relied upon the judgment of Chennai Bench of the Tribunal in the case of Life Shines Educational & Charitable Trust vs. ACIT in ITA No.2818 and 2819 (MDS) of 2014 60 taxmann.com 155 for the proposition that activity of running a pre-school and collecting the fee for imparting education to children shall be covered within the meaning of the term 'education' as envisaged u/s 2(15). 3.5. Further, with regard to the second reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose or object for each person depending upon its position and background. We have education of various types e.g. Pre-schooling, schooling, higher education, professional education, vocational training, professions training etc etc. After completing the school education, students go for higher education which may be obtained through college, university or they may choose to go for a professional course even after completing the professional qualification. There are many post qualification courses. That is to convey that 'education' may begin at any stage and it may go on throughout the life of a person. Under these circumstances, one cannot isolate 'education' given at one of the stages to say that it should not be treated as part of 'education'. The pre-schooling has become today a mandatory prelude to school education. It is like step number one in the ladder. If step number one is taken properly, then other higher steps would be achievable more efficiently and effectively. That is the purpose as has been understood by the parents who send their kids to preschools and it has become a mandatory requirement today for all the schools imparting quality educations. It is because ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en after huge litigation with respect to blanket exemption to educational institutions, when the amendment was made by the Finance Act, 2009, the activity of the education was kept outside the purview of newly inserted proviso. Thus, impliedly, it can be said that, it is clear that the legislature has given great significance to the utility of 'education' in our country." 3.9. Further, it is noted in the case of Life Shines Educational & Charitable Trust (supra) Chennai Bench of the Tribunal held that "pre-schooling' shall fall within meaning and scope of the 'education' as used u/s 2(15). Thus, in view of the aforesaid discussion and facts of this case, we do not find any justification in the view adopted by the Ld. DIT that preschooling is not part of education activity. In our considered view pre-schooling is very much integral part of the term 'education' as has been envisaged u/s 2(15) of the Act and we hold so. 3.10. Whether charging of fee and retaining surplus amounts to commercial activity, disentitling an assessee from the benefit of exemption u/s 11 and 12: It has been mentioned by the Ld. DIT that since the school is charging fee for issue of prospectus, school unif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loose the benefit of exemption under the income tax Act. Various High Courts had taken a contrary view. Finally this controversy has been put to rest by Hon'ble Supreme Court in the case of Queen's Educational Society of India v. CIT 372 ITR 699 (SC) wherein Hon'ble Apex Court has not agreed with the judgment of Hon'ble Uttarakhand High Courts and agreed with the judgments of other High Court and held that merely because an Educational institute happens to earn surplus then by that facts itself it would not be held that educational institute is not charitable and will not loose the benefit of exemption under the law by that fact alone. 3.12. Thus, keeping in view totality of the facts and circumstances, we find that Ld. DIT had gone wrong on law as well as facts, on both of the above aspects. In our view, the assessee trust is carrying out the activity of education and is therefore entitled for benefit of registration u/s 12A and we direct the DIT to grant the benefit of registration u/s 12A. Accordingly, the assessee is hereby granted the benefit of u/s 12A with effect from the date when the application was filed by the assessee. The AO is at liberty under the law to examine the ..... 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