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2016 (10) TMI 593 - ITAT BANGALORE

2016 (10) TMI 593 - ITAT BANGALORE - TMI - Grant of exemption u/s 10(23C)(vi) - eligibility of objects - non educational purposes - Held that:- In the present case, the objections of the revenue that clause-D & G of the objects clause are not for educational purposes could not be rebutted by the assessee to the satisfaction of the department or to our satisfaction. We find force in the objections of the ld. CCIT as per which clauses D & G of the objects of the assessee society are not in respec .....

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s appeal directed against the order passed by the ld. CCIT, Bangalore dated 29-09-2015 u/s 10(23C)(vi) of the IT Act, 1961. 2. The grounds raised by the assessee are as under; 1. On the facts of the case, he ld. CCIT erred in declining to grant exemption u/s 10(23C)(vi) of the IT Act, to the appellant. 2. The order of the ld. CCIT is opposed to law in that various submissions made by the appellant supported by case law cited have not been considered and accordingly the order passed is liable to .....

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h various objects provided in the Trust Deed, the appellant had wholly promoted the objects in educating the banking staff and consequently, he ought to have held that the appellant was eligible to get the exemption u/s 10(23C)(vi) of the Act. 5. The ld CCIT ought to have appreciated that the other objects provided in the Trust Deed would also relate to the promotion of the education amongst the staff and were not to be considered isolated to deny the benefit u/s 10(23C)(vi) of the Act. 6. For t .....

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ed to the assessee. Reliance has been placed on the following judicial pronouncements. a) CIT Vs Vidya Vikas Vihar, 265 ITR 489(Bom) b) CCIT Vs St. Peter s Educational Society, 385 ITR 66(SC) c) Ecumenical Christian Centre Vs CIT, 139 ITR 226(Kar.) 4. As against this, ld DR of the revenue supported the order of the ld. CCIT. He also submitted that the registration u/s 12A of the IT Act is different then granting exemption u/s 10(23C)(vi) of the Act. Regarding various judgments cited by the ld. A .....

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promote and provide for education and training in operations and management of banking to undertake, organize and facilitate conferences, seminars, study courses, lectures and similar other activities for the purpose of training (c) To promote and conduct research in matters pertaining to (i) improvement of bank's operations; (ii) education, trainir1g and development of banking personnel. (d) To assist banking institution in matters' suet; as appraisal programmes, conducting morale and .....

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purpose of promoting education and training of personnel of banking and financial institutions, (g) To provide consultancy services under its auspices or through its faculty to banks or any other institutions or individuals on matters having a bearing on production in Banking services, optimum use of financial resources or any other matter conducive to economic betterment. (h) To disseminate information on manaqement know-how by undertaking and providing for the publication of journals, reports, .....

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thereof, fiscal Or other sorts of assistance, amalgamation, Collaboration, co-operation and in any other ay as the society may deem (m) To establish, maintain and manage halls and hostels for accommodation of the trainees. (n) To do all lawful things as the society may deem fit for attainment of all or any of the objects. Section 10(23c)(vi) provides that any income received by any person or behalf of any university or other educational institution existing society for educational purposes A pe .....

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he society is conducting training to the personnel of member banks and providing consultancy services through its faculty to banks or any other institutions. These activities cannot be construed as activities for educational purposes. . It can be construed that the applicant trust is not satisfying the condition envisaged in section 10(23C)(vi) that the applicant should be "existing solely for educational purposes" Hence exemption under section 10(23C)(vi) of the Income tax Act, 1961 c .....

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ting morale and productivity studies, streamlining organizational structure and to review from time to time, the impact of educational training and research activities and offer suggestions for filing the gaps in the banking system. As for clause-G, which is also reproduced above, the assessee society has to provide consultancy services under its auspices or through its faculty to banks or any other institutions or individuals on matters having a bearing on production in Banking services, optimu .....

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on of the ld. CCIT because providing consultancy services to banks cannot be construed as activities for educational purposes. 8. In the light of these facts, now we examine the applicability of various judgments cited by the ld. AR of the assessee. First judgment cited is the judgment of the Hon ble Bombay High Court rendered in the case of CIT Vs Vidya Vikas Vihar (Supra). In that case, the facts as noted by the Hon ble Bombay High Court are that the dominant objects of the assessee society is .....

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ses and the individual object of construction of houses for weaker sections was not implemented or acted upon by the assessee in the relevant assessment year and under these facts and circumstances of the case, no fault can be found with the finding recorded by the Tribunal. In the present case, even the so called educational objects itself include rendering of consultancy services to banks and this is not the case of the assessee that in the relevant assessment year, no such activity was undert .....

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te before the Hon ble Apex Court was this as to whether an assessee institution which makes some profit means that it exists for profit whereas in the present case, objections of the department is this that some of the objects of the assessee society are not educational and therefore, this judgment of the Hon ble Apex Court also does not render any help to the assessee in the facts of the present case. 10. The third judgment on which reliance has been placed by he learned AR of the assessee is t .....

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