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TMI Blog2014 (9) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... in intellectual, moral or social benefit in keeping with the definition of the word “education” in the Concise Oxford Dictionary - He was also required to take into account the judicial pronouncement - the Chief Commissioner Income Tax was required to consider whether the educational process was being carried on in a systematic way by its arrangement into courses, classes, a specific number and length of classes in a day, following set syllabi etc. - The system of promotion, gradation, granting of diploma certificates etc. had also to be gone into – thus, the order of the Chief Commissioner Income Tax is set aside and the matter is remitted back for fresh consideration – Decided in favour of assessee. - W. P. No. 246 of 2014 - - - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied only towards public charity. The problem relates to assessment of income of the trust under the Indian Income Tax Act, 1961 (hereafter the Act ). Section 10 of the Act provides for incomes not included in the total income of an assessee. In other words income which is exempted. The following sub-sections of Section 10 are involved in this case and are set out below:- 10(23C) (iiiad) any university or other educational institution existing solely for education purposes and not for purposes of profit if the aggregate annual receipts of such university or educational institution do not exceed the amount of annual receipts as may be prescribed; or 10(23C) (vi) any university or other educational institution existing solely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ources. By providing fee relaxation to candidates related to employees of the Birla group there was business promotion and obliteration of the charitable purpose. Music, dance, art and craft have a limited scope in the education of a child. Instruction which the trust was imparting was not normal education . The instruction imparted by the trust was not in consonance with the definition of education in Sole Trustee, Loka Shikshana Trust Vs. Commissioner of Income-Tax, Mysore reported in 101 ITR 234. The most radical conclusion made by the Chief Commissioner of Income Tax was that by being lured into this institution, students were being deprived of regular instruction which was against the constitutional mandate. The poor who were ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Trustee, Loka Shikshana Trust Vs. Commissioner of Income-Tax, Mysore reported in 101 ITR 234 was considering whether a trust for running newspaper and journals was for charitable purpose while it was considering the meaning of charitable purpose in Section 2(15) of the Act which inter alia stipulated that charitable purposes included education. While interpreting the use of the word education in that sub-section the Court specifically said that the word had been used in a narrow context. The Court remarked as follows:- 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, traveling is education, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23) (iii)(ad) and 10(23C)vi of the Act a very wide construction. In that case also the society was engaged in teaching, promoting and encouraging all forms of music and dancing, western, Indian and others. The Division Bench held as follows:- It is seen from the above, that the petitioner is being run like any school nor educational institution in a systemic manner with regular classes, vacations, attendance requirements, enforcement of discipline and so on. These provisions in the rules and regulations satisfy the condition laid down in the judgment of the Hon ble Supreme Court , Sole Trustee, Loka Sikshana Trust, cited (Supra) that there should be a process of training and developing the knowledge, skill, mind and character of the stu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecific number and length of classes in a day, following set syllabi etc. The system of promotion, gradation, granting of diploma certificates etc. had also to be gone into. No such details are to be found in the impugned order of the Chief Commissioner. Neither is there any justification in support of the finding that the society has other sources of income. The source of gross receipts and the aggregate gross receipts have not been analysed. For all those reasons, the impugned order of the Chief Commissioner Income Tax dated 28th September, 2012 is set aside. He is directed to pass a fresh speaking order upon giving an opportunity of hearing to the writ petitioner within a period of three months from the date of communication of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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