TMI Blog2021 (1) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Commissioner of Income Tax (Appeals)-9, Ahmedabad arising out of the order dated 07.01.2016 passed by the ITO (E), Ward-2, Ahmedabad under section 143(3) of the Income Tax Act, 1961 (hereinafter referred as to 'the Act') for Assessment Year 2013-14. 2. The assessee has challenged the finding of the Ld. CIT(A) in upholding the finding of the Ld. AO in applying the last limp of the provision to Sec. 2(15) of the assessee trust considering the activities of the assessee trust as activated falling under the advancement of general public utility in the nature of trade, commerce or business when the main activity of the assessee trust is providing hostel facility to the needy student which falls under the educational activities and as such Proviso to sec. 2(15) of the Act is not applicable to the assessee's case. The short point involved in the case is this as to whether the hostel facilities providing to the needy students falls under the educational activities and, therefore, where the last limb the proviso to sec. 2(15) is applicable to the assessee trust. 3. We have heard the rival contentions and perused the relevant materials available on record. 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g formal education away from their homes. The concept of hostel is not only limited to place of residence, rather it is a human practical laboratory for development of students. It is a center of education. Students learn as much as from their teachers as well as fellows during hostel stay. It enriches understanding of the curriculum through analytical discussion amongst the students living in the hostels, and may contribute to character building as well. Students in hostel not only learn the theoretical material, they also learn how to enhance their personal abilities and learn to live independently. Hostel life has an impact upon the behavioral as well as personality development of students. It is one of the essential components of an educational institution. Some of the institutions like IITs, Medical Colleges provide compulsory stay in the hostel. Thus, how the AO can segregate this component from the concept of education provided in the main provision of section 2(15)? If it is accepted that hostel is just an essential part of educational institution, then all that discussions made by the AO would be irrelevant. The simple reason is that assessee-trust came into existence in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding facility only to the students, and there are lots of rules and regulations, bye-laws for admitting students, according to their merits in education. Thus, taking into account overall facts and circumstances, we are of the view that the assessee is entitled for benefit of sections 11 and 12 of the Income Tax Act. If the assessee is entitled for benefit of sections 11 and 12, then the amount spent from the corpus fund for construction of building is also to be looked into with that angle. We set aside both the orders of the Revenue authorities and restore this issue to the file of the AO. The ld. AO shall re-determine taxable income of the assessee and after providing benefit under sections 11 and 12. Taking into consideration the ratio laid down by the Co-ordinate Bench we have no hesitation to find the assessee activities towards providing hostel facilities to the student is purely an educational activities and, therefore, not coming under the proviso to Sec. 2(15) of the Act. Hence, the Ld. AO is directed to give relief to the assessee on this issue. With the observation made hereinabove, the assessee's appeal is allowed. 6. In the result, assessee's appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Lordships had, inter alia, directed that We, therefore, direct the President of the Appellate Tribunal to frame and lay down the guidelines in the similar lines as are laid down by the Apex Court in the case of Anil Rai (supra) and to issue appropriate administrative directions to all the Benches of the Tribunal in that behalf. We hope and trust that suitable guidelines shall be framed and issued by the President of the Appellate Tribunal within shortest reasonable time and followed strictly by all the Benches of the Tribunal. In the meanwhile (emphasis, by underlining, supplied by us now), all the revisional and appellate authorities under the Income-tax Act are directed to decide matters heard by them within a period of three months from the date case is closed for judgment . In the ruled so framed, as a result of these directions, the expression ordinarily has been inserted in the requirement to pronounce the order within a period of 90 days. The question then arises whether the passing of this order, beyond ninety days, was necessitated by any extraordinary circumstances. 9. Let us in this light revert to the prevailing situation in the country. On 24th March, 2020, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effect that can be neither anticipated nor controlled' When such is the position, and it is officially so notified by the Government of India and the Covid-19 epidemic has been notified as a disaster under the National Disaster Management Act, 2005, and also in the light of the discussions above, the period during which lockdown was in force can be anything but an ordinary period. 10. In the light of the above discussions, we are of the considered view that rather than taking a pedantic view of the rule requiring pronouncement of orders within 90 days, disregarding the important fact that the entire country was in lockdown, we should compute the period of 90 days by excluding at least the period during which the lockdown was in force. We must factor ground realities in mind while interpreting the time limit for the pronouncement of the order. Law is not brooding omnipotence in the sky. It is a pragmatic tool of the social order. The tenets of law being enacted on the basis of pragmatism, and that is how the law is required to interpreted. The interpretation so assigned by us is not only in consonance with the letter and spirit of rule 34(5) but is also a pragmatic approa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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