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TMI Blog2004 (5) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... t to have appreciated that the provisions of section 11(4A) of the Income-tax Act, 1961 are (sic) applicable to your petitioners and are entitled to the benefit of the relief provided by the said provisions." 3. We have heard the rival submissions in the light of the material placed before us and precedents relied upon. The assessee is an association of per sons. As per the memorandum of association, the assessee-society was constituted for the dissemination of knowledge and education and the pro motion of understanding between the people of India and the people of the United States of America. Its aims and objectives includes, inter alia, the true appreciation of the ways of life, cultures and languages of the peo ple of these countries and the promotion of enduring goodwill, friendship and co-operation in all spheres of life, thought and activity between the people of these countries. 4. In furtherance of the aforesaid aims and objectives, the society may undertake among others, the following activities in particular : "(a) the establishment of Information Exchange Centre ; (b) the organization of lectures, talks, symposia, forums, discussions, conventions, conferences, sem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uded that only elite class can attend these courses. As such, it was held that the object of the society is not falling within the ambit of "general public utility" class. It was also noticed that for a number of courses the assessee charged a percentage for earning large profits, which was spent for receiving, entertaining American ambassadors, councillors and other such people. The income from educational programmes amounted to in the vicinity of Rs. 78 lakhs. 7. The other sources of income comprised Rs. 20 lakhs from sponsorship and interest income. This has got no link with the objects or the activities of the society. On this factual backdrop the Assessing Officer held that the object of the assessee-society cannot be construed to be the object of general public utility ; as such the benefit claimed under section 11 of the Income-tax Act, 1961, was denied. Further, in regard to the various courses conducted by the assessee-society, it was held to be business activity. The case was examined on the touchstone of section 11(4A) of the Act and the benefit claimed under section 11 was denied. 8. The following academic programmes were carried out by the assessee society during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, a purpose must, in order to be charitable, be directed to the benefit of the community or a section of the community. 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. Education, in order to be charitable, must relate to the public. In the case of Ecumenical Christian Centre v. CIT [1983] 139 ITR 226 (Karn), it was held that the promotion of search for truth and diffusion of useful knowledge, promotion of conferences and discussions, the foundation and maintenance of conference centres and reading rooms and publication of journals and books for general use among the members and others are objects directly relating to education. In Royal Choral Society v. IRC [1944] 12 ITR (Supp) 13, the Court of Appeal held that cultivation and improvement of public taste in music and other fine arts is education and thus falls within the category of charitable purposes. In such cases it must be determined on the facts whether the presence of the element of entertainment or pleasu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , style and language as used in the original statute) as : "relief of aged, impotent and poor people . . . ." As per literal interpretation of the statute, in order to avail of the benefit of charity one must qualify all the conditions laid down, i.e., he should be aged, impotent and poor. But this interpretation is far from pragmatism. The words aged, impotent and poor ought not to be construed conjunctively, so as to deny benefit separately to aged people, impotent people and poor people. This aspect was considered in the case of In re Robinson ; Davis v. Robinson [1950] 2 All ER 1148 (Ch D). It was held in the said case that the words "aged, impotent and poor" in the statute of Elizabeth should be read disjunctively so that aged people need not also be poor to come within the ambit purview, and scope of the statute. Likewise, to enable the benefit of section 11 it is not sine qua non that education should only be imparted to the poor class and not to the elite class. 12. We have perused the objects of the assessee-society as given in the memorandum of association along with the activities undertaken by the society to achieve the objects. Just because the assessee-society is cha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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