TMI Blog2020 (2) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ures would also be bracketed in the league of educational activities when tested in the light of the decision in the case of Ahmedabad Management Association [ 2014 (8) TMI 638 - GUJARAT HIGH COURT] took note of the changing times and ever widening of horizon of knowledge, rapid changes in the method of teaching for constituting the word education used u/s .2(15) of the Act. Thus, on a fair reading of the activities carried out, the assessee, in our view, would be entitled for exemption under s.11 of the Act without any demur. - Decided in favour of assessee. - I.T.A. No. 485/Ahd/2018 & 712/Ahd/2017 - - - Dated:- 29-11-2019 - Shri Pradip Kumar Kedia, Accountant Member And Shri Mahavir Prasad, Judicial Member Appellant by: Shri S. N. Soparkar Shri Parin Shah, A.Rs. Respondent by: Shri Vinod Tanwani, Sr. D.R. ORDER Pradip Kumar Kedia, The captioned appeals have been filed at the instance of the assessee against the respective orders of the Commissioner of Income Tax (Appeals)-1, Vadodara ( CIT(A) in short), dated 05.04.2017 08.12.2016 arising in the assessment orders both dated 23.03.2015 passed by the Assessing Officer (AO) under s. 143(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. The AO eventually held the surplus of ₹ 19,86,737/- to be non-charitable in nature and consequently, taxable under the normal provisions of the Act. 7. Aggrieved by the denial of exemption claimed under s.11 of the Act, the assessee trust preferred appeal before the CIT(A) without any success. The relevant operative para of the order of the CIT(A) denying exemption to the assessee is reproduced hereunder: 4. I have carefully considered the facts on records and submission of the Ld. Authorized Representative. Ground No. 1 pertains to disallowance of exemption claimed u/s, 11 amounting to ₹ 19,86,737/-. Undisputedly, the appellant is engaged in the activities of conducting safety training programmes, workshops, seminars, conferences and creating safety awareness among workers/staff/executives working in industries and also for people commuting on roads. Accordingly it was claimed by the appellant that such activities are in the nature of education within the meaning of Section 2(15). To support its contention, the appellant has relied upon two decisions. In the first decision in the case of Sabarmati Gaushala Trust (supra), I find that issue was not relating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness and hence not entitled to exemption u/s. 11. (iii) Impressario Education Trust Vs. CIT (2014) 47 taxmann.com 259 (Cochin-Trib.) - In this case, the assessee was conducting classes of event management which were not recognized by Government bodies and as a consequence it did not result in conferment of any degree or diploma and hence it was held that the assessee's activity did not fall within the meaning of education as given in section 2(15} and thus claim of registration u/s. 12AA was to be rejected. Therefore, In view of the above facts and legal position, it emerges that the appellant was not engaged in any activity of normal education within the meaning of section 2(15) since it was only providing some short of training through workshop/seminar etc. without conferment of any Degree or Diploma through Government Recognized Authorities. In fact, the activities of the appellant fall in the category of advancing of any other object of general public utility involving trade, commerce or business and hence the income earned from such activity was not entitled to exemption u/s. 11. Accordingly, the action of the Assessing Officer in rejecting the claim of appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14] 366 ITR 85 (Guj.) for the proposition that expression education for the purposes of Section 2(15) of the Act should not be construed in a narrow or pedantic manner. The learned senior counsel submitted that educational activity does not mean and confine to only theoretical teaching in classrooms, in schools colleges but also include activities which provide education and create awareness about social science among people all around and accordingly the activities of the trust are purely educational in nature. The learned counsel accordingly submitted that act of assessee being educational, the assessee falls within the sweep of definition of charitable purposes under s.2(15) of the Act which is inclusive in nature. 9.3 The learned senior counsel thereafter referred to the decision of Hon ble Gujarat High Court in case of Ahmedabad Urban Development Authority vs. ACIT(Exemption) [2017] 396 ITR 323 (Guj.) and Director of Income-tax (Exemption) vs. Sabarmati Ashram Gaushala Trust [2014] 362 ITR 539 (Guj.) for the proposition that even if objects of the trust were to be regarded as advancement of object of general public utility , the proviso to Section 2(15) of the Act w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d before us is whether the assessee trust is entitled to exemption under s.11 of the Act on surplus arising from carrying on of activities in the nature of safety training programme etc. It is the case of the assessee that the trust is a public charitable trust and registered under Bombay Public Trust Act, 1950 as well as under s.12(A)(a) of the Act. The objects of the trust are claimed to be educational in nature and hence, exempt under s.11 of the Act. 11.1 The main thrust being on the objects of trust, will be apposite to reproduce the stated objects of the trust: The objects of the Gujarat Safety Council is in general to promote the message of safety and to engage itself in safety activities as mentioned below within Gujarat State. 1. To devise effective method of safety protection and propagate them among employees, workers and public at large in factories, on roads, in homes and in farms. 2. To organise safety programmes, lectures, conferences and other activities. 3. To conduct educational campaigns, to arouse public opinion and interest of the employers and workers. 4. To enlist the co-operation of public and private organizations interested in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction under s.11 of the Act on surplus as claimed. 11.4 Viewed from a different angle, multifaceted activities in the form of handbook/literature published together with stated activities like holding conferences on industrial safety programmes, public talks, seminars, workshops etc. on ongoing basis to inculcate safety measures would also be bracketed in the league of educational activities when tested in the light of the decision of the Hon ble Gujarat High court in the case of Ahmedabad Management Association (supra). The Hon ble Gujarat High Court took note of the changing times and ever widening of horizon of knowledge, rapid changes in the method of teaching for constituting the word education used under s.2(15) of the Act. Thus, on a fair reading of the activities carried out, the assessee, in our view, would be entitled for exemption under s.11 of the Act without any demur. 12. In the result, Ground No.1 of the assessee s appeal is allowed. 13. Ground No.2 concerning prior period expenses as dismissed in the absence of any explanation furnished to support the grievance and to negate the findings of lower authorities. 14. In the result, appeal filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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