TMI Blog2019 (1) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... resident And Shri Sudhanshu Srivastava, Judicial Member For the Assessee : Sh. Satyajeet Goel, CA For the Revenue : Shri G Johnson, Sr.DR ORDER PER SUDHANSHU SRIVASTAVA, J.M.: This assessee s appeal preferred against order dated 27.02.2015 passed by the Ld. CIT (Appeals), Muzaffarnagar for assessment year 2010-11. 2. The brief facts of the case are that the assessee is a society which enjoys registration u/s 12AA of the Income Tax Act, 1961 (here in after called as the Act ). The assessee society is running educational institutions/schools imparting education in various courses like BBA, MBA, PGDBM etc. The return of income was filed for the institution declaring nil income. Subsequently, the case was selected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome. Both these amounts were added to the income of the assessee s society. The assessment was completed at an income of ₹ 65,02,017/-. Aggrieved, the assessee approached the Ld. CIT (Appeals) who upheld the assessment order and now the assessee is before the ITAT and has challenged the action of the Ld. CIT (Appeals) in holding that the provision of hostel facilities and conveyance facilities was a business activity. 3. The Ld. Authorised Representative submitted that the issue is covered in favour of the assessee by order of ITAT Delhi Bench in the case of Delhi Public School Ghaziabad Society vs. ACIT in ITA no. 3593/Del/2015 vide order dated 08.05.2018 wherein it has been held that hostel facilities and transport facilities wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the question whether or not the activity of running school buses exclusively for the facility of the students and staff, is an intrinsic part of the activity of running a school. Such a question is no longer res Integra. In the case of Krishna Charitable Society Vs. Addl CIT in ITA No. 4639/Del/2015 for AY 2011-12 dated 15.09.2017, a similar question had arisen. Vide para No.11, a coordinate bench of this Tribunal held that transport and hostel facility surplus cannot be considered as business income of the society as these activities are incidental to the main object of the assessee society of education. Relevant observations on this aspect are as under:- 11. We have carefully considered the rival contentions and perused the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... U.P. (1976) 38 STC 428 (All) with respect to the visitors' hostel maintained by the Indian Institute of Technology where lodging and boarding facilities were provided to persons who would come to the Institute in connection with education and the academic activities of the Institute. It was observed that the statutory obligation of maintenance of the hostel, which involved supply, and sale of food wasan integral part of the objects of the Institute nor could the running of the hostel be treated as the principal activity of the Institute. The Institute could not be held to be doing business. Further meals being supplied in a hostel to the scholars, visitors, guest faculty etc. cannot be exigible to sales tax where main activity is academ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;educational activities' of the assessee and they cannot be considered different than activities of the society of 'education'. The hostel and transport facilities are incidental to achieve the object of providing education as per object of the trust. 12. Further, in Mallikarjun School Society vs.CCIT (2018) 90 taxmann.com 160 (Uttarakhand), the Hon'ble High Court held that an educational institution will not cease to be one existing solely for educational purposes since the object is not to make profit and the decisive or as a test as observed by the Hon'ble Apex court is whether on an overall view of the matter the object is to make profit and one should bear in mind the distinction between the corpus, the objec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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