TMI Blog2017 (11) TMI 962X X X X Extracts X X X X X X X X Extracts X X X X ..... consider the application of the assessee by considering the above decisions and in the light of them needs to examine the object of the trust whether they are falling within the meaning of “education” or not as per section 2(15) of the Act. Appeal filed by the assessee is allowed for statistical purposes. - ITA No. 6616/Del/2013 - - - Dated:- 15-11-2017 - SHRI H.S.SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Assessee : Shri PC Yadav, Adv For The Revenue : Shr Vijay Varma, CIT DR ORDER PER PRASHANT MAHARISHI, A. M. 1. This is an appeal filed by the assessee against the order of the ld CIT(Exemptions), New Delhi dated 26.03.2013 wherein the application for registration u/s 12AA was rejected holding that assessee is not carrying on education activity. The assessee has raised following grounds of appeal:- Order of the Learned Officer is against facts of the case. Objects of the company as per Memorandum of Association are imparting the education related to wilderness skills and leadership, which is specialized form of wilderness and leadership education. Despite in being Education field, the required regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reme Court in case of Shikshana Trust 101 ITR 234. He further held that the assessee‟s object fall under the residual category of general public utility and not in the category of education. He further noted that the assessee has received consultation charges of ₹ 97.89 lakhs from its USA during the FY 2011-12. He therefore, held that the assessee is involved in rendering services outside India which is not permissible. Hence, he rejected the application of the assessee u/s 12AA and consequently, the application u/s 80G of the Act. Aggrieved the assessee preferred an appeal before the us. 5. The ld AR vehemently submitted that the assessee is carrying on education activities and not the object of general public utility. He made a written submission as under:- 1) The assessee is section 25 Company and engaged in the teaching of wilderness skills and leadership that serve people and environment. The main objects of the assessee as mentioned in MOA are spreading education in the field of wilderness skills 2) A perusal of the objects prove beyond doubt that assessee is covered by the first three limbs of the proviso to section 2(15). Wilderness skill means trai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titution the company is required to apply its profits, if any, or other income in promoting its objects and is prohibited from paying any dividend to its members, the Central Government may, by licence, authorise the company by a special resolution to change its name, including or consisting of the omission of the word Limited or the words Private Limited ; and section 23 shall apply to a change of name under this sub- section as it applies to a change of name under section 21. 4. A firm may be a member of any association or company licensed under this section, but on the dissolution of the firm, its membership of the association or company shall cease. 5. A license may be granted by the Central Government under this section on such conditions and subject to such regulations as it thinks fit, and those conditions and regulations shall be binding on the body to which the licence is granted, and where the grant is under sub- section (1), shall, if the Central Government so directs, be inserted in the memorandum, or in the articles, or partly in the one and partly in the other. 6. It shall not be necessary for a body to which a licence is so granted to use the wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effect of the foregoing provisions of this sub- section; and (b) section 23 shall apply to a change of name under this sub- section as it applies to a change of name under section 21. (10) If the body makes default in complying with the requirements of sub- section (9), it shall be punishable with fine which may extend to five hundred rupees for every day during which the default continues. Articles of Association. 5. Further, a bare perusal of the definition of section 25 Companies Act makes it clear that Central Govt, after satisfying about the characteristics of objects and application of income, may grant iicense to these companies and these companies are completely debar from distribution of profits among it‟s members by way of dividend. Hence the Commissioner has erred in overlooking section 25 of the Companies Act. 6. It is also provided in this section that if at any time it is found that the entity has violated those terms and condition on the basis of which the license has been granted, then the Central Govt, may revoke the license at any time. 7. Commissioner has overlooked that in the case of the assessee also the promoter, director o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ural environment. Definitions Outdoor education can be simply defined as experiential learning in, for, or about the outdoors. The term outdoor education , however, is used broadly to refer to a range of organized activities that Outdoor education can be simply defined as experiential learning in, for, or about the outdoors. The term outdoor education , however, is used broadly to refer to a range of organized activities that take place is a variety of ways in predominately outdoor environments. Common definitions of outdoor education are difficult to achieve because interpretations vary according to culture, philosophy, and local conditions. Outdoor education is often referred to as synonymous with adventure education, adventure programming, and outdoor learning. outdoor school, adventure therapy, adventure recreation, adventure tourism, expeditionary learning, challenge education, experiential education, environmental education, forest schools and wilderness education. Consensus about the meaning of these terms is also difficult to achieve. However, outdoor education often uses or draws upon these related elements and/or informs these areas. The hallmark of ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . What education connotes in that clause is the process of training and developing the knowledge, skill, mind and character of students by normal schooling. The Supreme Court in the above observations by referring to the systematic instruction, schooling or training given to the young has only cited an instance in order to indicate as to what the word education appearing in s. 2(15) of the Act which defines charitable purposes is intended to mean. We are certain that these observations were not intended to keep out of the meaning of the word education , persons other then young . The expression schooling also means that schools, instmcts or educates (The Oxford English Dictionary, Vol. IX 217). The Supreme Court has observed that the word education also connotes the whole course of scholastic instruction which a person has received. This clearly indicates that the observations of the Supreme Court were not intended to give a narrow or pedantic sense to the word education . By giving further illustrations of a traveler gaining knowledge, victims of swindlers and thieves becoming wiser, the visitors to night clubs adding to their knowledge and hidden mysteries o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooling‟ also means that schools, instructs or educates‟ (The Oxford English Dictionary, Vol. IX, p. 217). The Supreme Court has observed that the word education‟ also connotes the whole course of scholastic instruction which a person has received. This clearly indicates that the observations of the Supreme Court were not intended to give a narrow or pedantic sense to the word education‟. By giving further illustrations of a traveller gaining knowledge, victims of swindlers and thieves becoming wiser, the visitors to night clubs adding to their knowledge the hidden mysteries of life, the Supreme Court has indicated that the word education‟ is not used in a loose sense so as to include acquisition of even such knowledge. The observations of the Supreme Court only indicate the proper confines of the word education‟ in the context of the provisions of s. 2(15) of the Act. It will not be proper to construe these observations in a manner in which they are construed by the Tribunal when it infers from these observations, in para 17 of its judgment, that the word education‟ is limited to schools, colleges and similar institutions and do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ills, wilderness medicine, risk management and judgment and leadership on extended wilderness expeditions and in traditional classrooms. The limited issue here is whether the activity of the assessee falls under the category of education and not general public utility . The ld CIT(E) has heavy relied on the decision of the Hon ble Supreme Court in Lok Shikshana Trust 101 ITR 234. He was of the view that there is no class room teaching as formal schooling and not the activity as education as envisages by the assessee. The Hon ble Delhi High Court had an occasion to consider in 357 ITR 265 that whether a society teaching and promoting form of music and dance, western, Indian or any other which runs like school or educational institute in a systematic manner in regular classes, vacations, attendance and enforcement of discipline is in education or not. Though it did not conduct its own examination or awarded degrees the Hon ble High Court held that it meets the requirement of educational institute. Similarly, in DIT(E) Vs. Samudra Institute Of Maritime Studies Trust 369 ITR 645 the Hon ble Bombay High Court had an occasion to consider whether the above assessee set up to admini ..... X X X X Extracts X X X X X X X X Extracts X X X X
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