TMI Blog2016 (6) TMI 1387X X X X Extracts X X X X X X X X Extracts X X X X ..... jit Singh, JM For the Assessee : Shri Nitesh Joshi For the Department : Shri B.C.S. Naik (CIT-DR) ORDER Per Amarjit Singh, JM This is an appeal filed by the assessee against the order dated 01.02.2013 passed by the Commissioner of Income Tax (Appeals)-1, Mumbai [hereinafter referred to as the CIT(A) ] relevant to the assessment year 2009-10. 2. The assessee has raised the following grounds:- 1. The grounds of appeal that follow are all independent and without prejudice to each other. 2. Re: Exemption under Section 11: 2.1 That, on the facts and in the circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeals) erred in upholding the Assessing Officer s action in rejecting the appellant s claim for exemption under section 11 on the ground that the appellant s primary activities were not for the benefit of the public at large and were also not of charitable nature. 3.0 Re: Taxability of Capital Receipts / Corpus Donations: 3.1 That on the facts and in the circumstances of the case and in law, Learned Commissioner of Income Tax (Appeals) erred in upholding the action of the Assessing Officer in adding ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to Indian Institute of Banking and Finance. The principle objects of the assessee as per the Memorandum of Association are as under:- i) To encourage the study of the theory of banking and for that purpose to Institute a scheme of examinations and to give certificates, scholarship and prizes. ii) To promote information on banking and kindred subjects by lectures, discussions, books, correspondence with public bodies and individuals or otherwise. iii) To collect and circulate statistics and other information relating to the business of banking in India. iv) To acquire by purchase, donation or otherwise and to maintain extend and improve a library consisting of works on banking, commerce, finance, political economy and kindred subjects. The Assessing Officer concluded that the assessee firm was not entitled for the exemption u/s.11 of the Income Tax Act, 1961( in short the Act ). Therefore, declined the life membership accounts and corpus donations and other expenses under challenge which were confirmed by the learned CIT(A) hence the assessee has filed the present appeal before us. ISSUE NO.1 4. Issue no.1 is formal in nature which does not require any adjudi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also placed reliance on the following decisions: City Montessori School vs UOJ, reported in 315 ITR 48 (All); DIT (E) vs Ahmedabad Management Association, Order dated 13.06.2014, by the Hon'ble Gujarai High Court, ITA No. 707 of 2013; DIT us Samudra Institute of Meritime Studies Trust, reported in (2014) 49 Taxman.com 510 (Bom) (Copies enclosed}, : wherein the ration has been laid that the associations had been running educational institutions and having educational activity. 13. The primary reason for denial of exemption u/ s 11 are, that the Institute has generated huge surplus and the Institute is not open to public at large. 14. The Memorandum of Association when read out, we find that the Institute had been brought up only for the purpose of development of baking personnel for/in the banking industry. The institute imparts education to the candidates who are connected with the banking industry. It has library facility, organizes lectures, seminars and undertake examinations for promoting bank officers. 15. In so far as its investments are concerned it was explained, the surplus, if. any; arising out of the activities of the Institute is not di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficate Examination for the employees of Unit Trust of India. 15. A detailed list of the assessee's activities is-found in the records, which was placed before the revenue authorities as we as us. 16. For advancement in banking industry, the number of students enrolling for various courses offered by the Institute increased steadily over the years, thereby reflecting the growing popularity of the Institute's courses in the banking arena. The list of the various courses offered by the Institute is on record. 17. Reverting our attention to the reasoning given by the revenue authorities, that the assessee was generating huge surplus, it was submitted that as per section 11 of the Act the assessee could spend 85% of its income towards charitable objects. It was submitted that if there was a surplus, it could be legally accumulated under section 11 (2) of the Act The AR submitted that the assessee has always complied with the said requirement in each of the years. The accumulation of the corpus, if any, has been spent in accordance with the provisions of section 11(2) of the Act. Accept for this fact, the AR submitted, the revenue authorities, did not have any argument, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew the activities would squarely be covered by the definition of charitable purpose , as defined in Section 2(15) of the Act, as these activities are meant for general public utility, i.e. whoever wants to advance his/her qualifications in the banking industry. From the above details and description, we are of the opinion that the assessee is a charitable organization and eligible for deduction u/s 11 of the Act. 5.1 The activities of the institute for the year under consideration are the same which has been shown at page 79 of the paper book. The courses run by the assessee are also the same which have been shown at page 80 to 84 of the paper book. Therefore the order for the A.Y. of 2008-09 has been passed under the similar circumstances hence the same is applicable in this assessment year also. No distinguishable material was produced before us to which it can be assumed that the activity of the institute has now being changed. The object and activity of the institute are quite similar with the assessment year of 2008-09 vide which the above mentioned order has been passed. We found no ground to deviate with the finding of the order of the Tribunal mentioned above. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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