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2017 (1) TMI 453 - ITAT HYDERABAD

2017 (1) TMI 453 - ITAT HYDERABAD - TMI - Rejection of claim of exemption u/s 11 on the basis of proviso to section 2(15) - Assessee is carrying on education and training activities - charging of fees - Held that:- As decided in assessee's own case for AY 2010-11 mere charging of fees for carrying activities will not loose the character of charity and in this case, the department has already granted registration treating the activities as charitable but has not declared under which activity whet .....

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has carried on the activities of imparting training to the bottom line employees and there is no element of profit in the said activity as the surplus generated out of the activities is again applied for the charitable activity only. Moreover, the assessee quoted various case laws in support of its claim that they are in the field of education. When analysed closely, all the institutions i.e. Ahmadabad Management Association, ICAI, Peterís education society, are educating people more on structur .....

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ities as held by the AO. Thus, AO cannot deny the benefit u/s 11 of the Act. - Decided in favour of assessee - ITA No. 1193/Hyd/2016 - Dated:- 4-1-2017 - Shri D. Manmohan, Vice President And Shri S. Rifaur Rahman, Accountant Member Assessee by : Shri M.V. Anil Kumar Revenue by : Shri A. Sitarama Rao ORDER Per S. Rifaur Rahman, A.M. This appeal is preferred by the assessee against the order of the learned Commissioner of Income-tax(A) - 9, Hyderabad, dated 31/03/2016 for AY 2011-12. 2. Briefly th .....

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onfirmed the action of the AO. 4. Aggrieved by the order of the CIT(A), the assessee is in appeal before us raising the following grounds of appeal: 1. The order of the learned Commissioner of Income Tax, Hyderabad, is against the law, weight of evidence and probabilities of case. 2. Your assessee submits that the CIT(A) ought to have appreciated the fact that your Assessee is carrying on education and training activities, based on the various case laws cited before CIT(A), within the meaning of .....

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ithin the meaning of section 2(15) of the Income Tax Act, 1961. 5. The CIT(A) as well as the Assessing Officer erred in law and facts of the case that your assessee was in fact carrying on education and training to which proviso to section 2(15) are not applicable and not have denied exemption u/s 11 of the Income Tax Act, 1961. 6. CIT (A) erred in law and on facts of the case in disallowing depreciation claimed by your assessee. 7. The assessee craves leave to add to, amend or modify the above .....

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nsidered the rival submissions and perused the material facts on record. As submitted by the ld. AR of the assessee, similar issue came up for consideration before the ITAT in assessee s own case for AY 2010-11, wherein the Bench has held as under: 9. Considered the submissions of both the counsels and material facts on record as well as the orders of revenue authorities. There is no dispute on the fact that the trust is functioning since 1982 and 12A registration is granted as well as enjoying .....

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c utility. 9.1 To adjudicate the issue in dispute, we analyse the judicial pronouncements, which are as below: 9.2 It was held in Bureau of Indian Standards Vs. DGIT (Exemption) [2013] 212 Taxmann 210 (Del.), activities of Bureau of Indian Standards in prescribing of standards of goods/articles and enforcing those standards through accreditation and continuing supervision through inspection etc., cannot be considered as trade business or commercial activity merely because testing procedures invo .....

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t be eligible for exemption u/s 11 or 10(23)(C) of the Act if they carry on commercial activities and if the aggregate value of the receipts from the activities is ten lakh rupees or more in the relevant PY. The proviso will not apply in respect of the first three limbs of section 2(15) i.e. relief to the poor, education or medical relief. Thus, where the purpose of a trust or institution is relief to the poor, education or medical relief, it will constitute charitable purpose even if it inciden .....

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ng the activities as charitable but has not declared under which activity whether under education or general public utility. From the assessment order, the assessee has charged fee to various activities like seminars, participation fees of participants shows that assessee had engaged in some sort of lectures/training relating to the objects of the trust i.e. education and training to the bottom line employees in quality and improvement methods. It was not controverted by the department. It was o .....

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