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2009 (8) TMI 83

..... ute to the development of society” – Held that - The petitioner Institute, admittedly, fulfils the requirement of imparting formal education by a systematic instruction, as noted above. If the same university introduces the courses with the objective of “greater interface with the society through extra mural, extension and field action related programmes”, these are not the objectives independent of education but are aid to the education - The petitioner Institute fulfils all the requirements of Section 10(23C)(vi) of the Act and is, thus, entitled for grant of registration and consequently exemption under the aforesaid provision of the Act - 5581 of 2008 - 21-8-2009 - A. K. SIKRI and NEERAJ KISHAN KAUL, JJ. Mr. Amol Sinha with Mr. Praveen Chauhan, Advocates, for the Petitioner. Ms. Prem Lata Bansal with Ms. Anshul Sharma and Mr. Paras Chaudhary, Advocates, for the Respondent. JUDGMENT A.K. SIKRI, J. - The petitioner is a registered society under the Societies Registration Act, 1860. It is running an institute known as Jaypee Institute of Information Technology (hereinafter referred to as the Institute ). According to the petitioner, the object with which the petitioner Institute w .....

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..... y under De-novo category for the purpose of the aforesaid Act with immediate effect subject to review after three years. The grant of de-novo Deemed to be University status to Jaypee Institute of Information Technology, Noida is subject to the conditions that (i) JIIT, Noida will revise/amend its MOA/ Rules as per UGC Model MOA/Rules for deemed Universities; (ii) JIIT, Noida will get its land transferred in the name of JIIT Society; and (iii) It will adhere to the guidelines/instructions issued by UGC and AICTE from time to time as applicable to the Deemed Universities. Sd/- (Ravi Mathur) Joint Secretary to the Government of India 4. This status of Deemed University was conferred upon the Institute subject to the condition that the institute revises/amends its MOA/Rules as per the UGC model. UGC has issued guidelines for considering proposals for declaring an institute as a Deemed University under Section 3 of the UGC Act. These guidelines are annexed with the writ petition as Annexure-A. Para 3 of these guidelines provides that to qualify for recognition of status as a University, the institution should have, among its primary objectives, post-graduate instruction and training in .....

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..... eemed University under Section 3 of the UGC Act, it has to be registered either as a Society or as a Trust. Further, it has to have MOA on the lines of model constitution provided by the UGC which specifically stipulates the objectives which are to be mentioned in the MOA of the institute. Undertaking extra mural status, extension programmes and field outreach activities to contribute to the development of the society is specifically stipulated as one of the objectives which each such institution is bound to satisfy. This is so mentioned even in the guideline No. 4(a)(i). Therefore, inclusion of this objective is imperative, without which the UGC would not accord the status of Deemed University to the applicant Institute. 6. It was because of the aforesaid guidelines that the petitioner Institute was obliged to have its MOA in the said form. However, notwithstanding this, the respondent has rejected the application for grant of exemption under Section 10(23C)(vi) of the Act for the assessment year 2007-08 holding that the Institute does not exist solely for educational purposes as the purpose/objective of greater interface with society through extra mural, extension and field actio .....

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..... ing down the application of the petitioner. 8. No doubt, as per Section 10(23C)(vi) of the Act, the requirement is that a University or educational institution, in order to get exemption under the aforesaid provision, is to exist solely for educational purposes. This provision reads as under :- Any university or other educational institution existing solely for educational purposes and not for purposes of profit, other than those mentioned in sub-clause (iiiab) or sub-clause (iiiad) and which may be approved by the prescribed authority. 9. In what manner the education is to be imparted is explained by the Supreme Court in the case of Sole Trustee Loka Shikshana Trust v. Commissioner of Income Tax, (1975) 101 ITR 234 (SC). The Court refined the expression Education as appearing in Section 2(15) of the Act, which is extracted by the respondent as well in the impugned order. It reads as under :- The sense in which the word education has been used in Section 2(15) is the systematic instruction, schooling or training given to the young in preparation for the work of life. It also connotes the whole course of scholastic instruction which a person has received. The word education has not .....

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..... as been issued, would be a clinching factor insofar as institutionalized education conducted by the petitioner is concerned. It is imparting education in an organized and systematic manner and is accountable to UGC even for maintaining the standards of education. It is not in dispute that in the petitioner Institute teachers are employed and students enrolled are taught by these teachers under their control and they remain under their control and supervision. 12. On the contrary, the Supreme Court has given wider meaning to the expression any educational institution occurring in Section 10(23C)(vi) of the Act. Under this phrase, even those institutions would be covered which may or may not have to do anything with the university. The courts have expressed the opinion, by catena of judgments, that categories provided in the aforesaid provision are so different that the university cannot be the genus and other educational institution the species thereof. Once a college is established by an institution, that would come within the expression other educational institution . {See - Addl. Commissioner of Income Tax v. Aditanar Educational Institution, 224 ITR 310 (SC); Addl. CIT v. M/s. H .....

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..... education is one which makes a student socially relevant. For this purpose, his greater interface with the society is required. UGC perceives that this can be achieved through extra mural, extension and field action related programmes. These programmes may include NSS and NCC activities, other social service programmes and projects. It is with this purpose in mind that the aforesaid objective is introduced so that students in the petitioner Institution are able to get real education. The main purpose, therefore, remains Education which is imparted in a formal way by the petitioner Institute with status of Deemed University through the help of teachers. The aforesaid activities would only develop the knowledge, skill or character of the students further by achieving education in true sense. 15. The central task of education is to implant a will and facility of learning; it should produce not learned but learning people . Any Rand highlights the following purpose of education :- The only purpose of education is to teach a student how to live his life by developing his mind and equipping him to deal with reality. The training he needs is theoretical, i.e. conceptual. He has to be tau .....

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