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TMI Blog2010 (9) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant. Ms. Rita Kumari Dokania for the Respondent. ORDER PER N.V.VASUDEVAN, J.M, ITA No.566/Mum/2010 : Jito Administrative Training Foundation, a trust, (hereinafter referred to as the appellant ) has filed the present appeal against the order dated 25/11/2009 of the Director of Income-Tax (Exemption), Mumbai, refusing registration to the appellant to u/s.12A of the Act. 2. One of the conditions for claiming exemption under Sec.11 of the Income Tax Act, 1961, (hereinafter referred to as the Act ), of income from property held for charitable or religious purposes under trust, is to get the Trust registered under Section 12A of the Act. Under Sec.12AA registration will be granted by the Commissioner only if he is satisfied about the object of the trust and genuineness of its activities. 3. The Appellant trust was constituted under a deed of trust dated 2/6/2008. The appellant made an application for grant of registration u/s.12A of the Act to the respondent herein. The main objects of the Trust as given in the Trust deed was as under:- To promoste, set up, upgrade, maintain, run manage and carry on activities of residential training centers, schools, colleg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Bihar Institute of Mining and Mine Surveying (supra) and the ratio of the judgment of the above case would apply with full force in the case of the appellant. On the submission of the appellant that it was providing facility free of cost to the poor and needy, the respondent noticed that in the copy of guidelines for selection of students there was no such criteria specified. The respondent further held that the appellant was merely refreshing knowledge already possessed by the students and not imparting any further education. In this regard the respondent also observed that the qualification for the exams are already decided by the authorities and the questions asked are framed keeping in mind the knowledge which participant supposed to have already gained/received during the process of his or her schooling or university education. The respondent thereafter referred to the following observation of the Hon ble Supreme Court in the case of Lok Shikshan Trust (Supra). the sense in which the work 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 cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground was entitled to registration u/s.12A of the Act. His alternative submission was that, in case the appellant is not regarded as providing education then it should be considered as existing for the advancement of any other object of general public utility . His submission was that it is not a necessary element in a charitable purpose that it should provide something for nothing or for less than its cost or for less than the ordinary price. He also submitted that the scope of enquiry while granting registration u/s.12A is restricted only to see if the objects of the trust are charitable and the activities of the trust are genuine. According to him as to whether poor students alone are given facilities for education and that too free of cost, are all considerations, which would not be relevant at the stage of grant of registration. In this regard, he placed reliance on the following decisions: a) Oxford Academy for Carreer Development Vs. CCIT and others 315 ITR 382 (All) b) Gujarat State Co-operative Union Vs. CIT 195 ITR 279 (Guj). c) Indo-American Society Vs. ADIT (E)-II (1) 278 ITR (AT) 49 (ITAT-Mumbai). d) DCIT Vs. Prajapita Brahma Kumaris IShwariya Vishwa Vidyalay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption of any income of a university or other educational institution existing solely for educational purposes and not for purposes of profit. The Hon ble Court after analysis of the objects of the society found that the Society was diffusing knowledge about co-operative movement in various fields governing human life and the activities for the purpose were carried out in an organized and systematic manner by conducting regular course for imparting instruction and training on various subjects. The activity of running a printing press was found to be incidental to the object of publishing periodicals, books, pamphlets and literature and was part of the educational activities of the society. Hence, exemption u/s.10(22) was directed to be allowed. We have already seen that the Appellant was coaching students for preparing the students to appear at some specified examination and this activity was held by the Hon ble Patna High Court as not charitable. The decision in the case of Indo-American Society (Supra) is a case where the objects were found to be imparting education but the exemption was denied on the ground that education was imparted to elite class and not to poor. The Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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