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TMI Blog2012 (4) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration is grant of exemption u/s 11 of the Income-tax Act. 3. Smt. Vijayaprabha, the ld.DR submitted that the assessee was a registered trust u/s 12A of the Act. The main object of the assessee as per the trust deed was to open, takeover or run educational institutions like schools, college, etc. However, the assessee has not established or run any regular school or college so far. The assessee is conducting coaching classes for students of various courses, who are appearing for open university/distance education. According to the ld. representative, preparing these students for examination by conducting coaching classes is not a charitable activity within the meaning of section 2(15) of the Act. Therefore, the assessee is not enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the same set of facts this Tribunal granted exemption u/s 11 of the Income-tax Act. On a query from the bench, whether the assessee obtained approval u/s 10(23C) of the Act, the ld. representative very fairly submitted that no approval u/s 10(23C) is granted and the assessee is claiming exemption u/s 11 on the ground that the assessee trust was registered u/s 12A of the Act. 5. We have considered the rival submissions on either side and also perused the material available on record. We have also carefully gone through the orders of lower authorities. No doubt, the assessee was registered u/s 12A of the Act. It is also pertinent to note that mere registration will not automatically grant exemptions u/s 11 & 12 of the Income-tax Act. Regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the word "education" used in section 2(15) connotes the process of training and developing the knowledge, skill, mind and character of students by normal schooling. In fact, the Apex Court has observed as follows, at page 241 of the ITR: " The sense in which the word "education" has been used in section 2(15) in the systematic instruction, schooling or training given to the young is 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 been used in that wide and extended sense, according to which every acquisition of further knowledge constitutes education. According to this wide and extended sense, travelling is education, because as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to consider the very same issue. In the case before the Patna High Court the assessee was running classes and vocational training to students. The assessee claimed it as a charitable institution within the meaning of section 2(15) of the Act. The Patna High Court, after considering the judgment of the Apex Court in Commissioner of Income-tax v. Andhra Chamber of Commerce [1965] 55 ITR 722 (SC) and in the case of Commissioner of Income-tax v. Sole Trustee, Loka Shikshana Trust [1970] 77 ITR 61 (Mys) has observed as follows at page 615 of the ITR: " It is true that by reason of the Finance Act, 1983, the question as to whether any charitable institution is being run with a profit motive or not has lost its relevant. However, the word "charit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or preparing the students to attend the examination conducted by open university or by the other university or distance education cannot be considered to be a regular and systematic schooling within the meaning of section 2(15) of the Act. Therefore, the activity of the assessee is not "education" institution within the meaning of section 2(15) of the Act. Therefore, the assessee is not entitled for exemption u/s 11 of the Act. 8. We have also carefully gone through the decision of this bench in assessee's own case for assessment years 1998-99, 2999-2000 and 2000-01. The earlier bench of this Tribunal had no occasion to consider the judgment of the Apex Court in the case of Sole Trustee, Loka Shikshana Trust (supra) and the Patna High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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