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TMI Blog1987 (4) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income-tax Act, 1961 with the Commissioner of Income-tax,Lucknowand a certificate under section 80G was also issued in its favour. The assessee foundation claimed exemption of its income under section 10(22) which provides for the exemption of "the income of a university or other educational institution existing solely for educational purposes and not for the purposes of profit". However the Inspecting Asstt. Commissioner (Assessments) took the view that the assessee was neither a university nor other educational institution recognised by any university or any State or Central Government. He was also of the view that the activities of the assessee foundation did not satisfy the requirements enunciated by the Supreme Court in the case of Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234. He noticed among other things that the assessee foundation had charged fee for education and also received donations from the trainees (course participants) for incurring expenses though it was claimed that donations were made towards the corpus. The assessee's claim for exemption under section 10(22) was accordingly rejected and the total receipts of the assessee for the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the learned counsel for the assessee referred to the decision of the Hon'ble Madras High Court in Addl. CIT v. Aditanar Educational Institution [1979] 118 ITR 235 for the proposition that the principle of ejusdem generis had no application in interpreting the language of section 10(22). Regarding the expression "or other educational institution" he referred to the following decisions-- (i) Royal Choral Society v. IRC [1943] 25 TC 263 (CA); (ii) Katra Education Society v. ITO [1978] (iii) CIT v. Sindhu Vidya Mandal Trust [1983] 142 ITR 633 (Guj.); (iv) ITO v. Devanga Educational Association [1984] 8 ITD 490 (Mad.); and (v) Trustees of the Tagore Educational Society v. Seventh ITO [1984] 10 ITD 279 (Bom.). He referred to the implications of T.M. as discussed by V. R. Krishna Iyer of the Supreme Court in the case of Hiralal Mallick v. State ofBihar AIR1977 SC 2236 at 2243. He also referred to Chamber's Twentieth Century Dictionary, Iyer's Law Lexicon. Supreme Court's decision in the case of Sole Trustees, Loka Shikshana Trust and the decision of the Hon'ble Calcutta High Court in the case of Birla Vidhya Vihar [1982] 136 ITR 445 as to the meaning of education. In this connectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tution. The further point which arises is whether it is an educational institution. This brings us to the import and meaning of the word "education". This very point camp up for consideration before the Supreme Court in the case of Sole Trustee, Loka Shikshana Trust. It was held there that 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 Supreme Court held that what education connotes is the process of training and developing knowledge, skill, mind and character of students by normal schooling. The SRM foundation is dedicated to offering peace, harmony and happiness to everyone in all walks of life through the system of transcendental Deep Meditation. This system been developed by His Holiness Maharishi Mahesh Yogi whereby every normal man, regardless of caste, creed and denomination can easily reach the deeper levels of consciousness, unfold latent faculties and realise more complete happiness. The objects for which the assessee foundation was formed have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned CIT (A) also gives the names of the various Indian and foreign institution and universities where TM has been adopted as a part of the curriculum. The systematic instruction in TM is initially imparted to the trainers (a copy of their sample biodata has been placed by the assessee on the paper book) and then the trainers (qualified instructors) impart instruction to the trainees. We are of the view that the text of "Systematic Schooling" laid down by the Supreme Court in the case of Sole Trustee, Loka Shikshana Trust, was satisfied by the assessee if we look at its functions and activities. The facts in the case of Rajneesh Foundation were entirely different. There the Trust Deed envisaged embarking on a number of activities not related to its primary object. There was intermingling of several institutions, each carrying on a different activity but put together not having a common denominator called "education". This decision cannot, therefore, be taken advantage of by the department. In the case of Birla Vidya Vihar Trust some of the objects of the assessee trust were other than educational. There is no purpose other than educational so far as the assessee foundation is co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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