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TMI Blog2015 (4) TMI 668X X X X Extracts X X X X X X X X Extracts X X X X ..... o as 'the Act') since 1980. The Assessing Officer while completing the scrutiny assessment for the assessment year 2009-10 held that since the assessee is not imparting formal education it is not covered by the provisions of Section 2(15) of the Act. The A.O. thus held that the assessee is not eligible to claim the benefit of sec.11 of the Act. In the assessment year 2010-11, the Assessing Officer vide order dated 21.1.2013, held that objects of the assessee fall within the ambit of "general public utility". Since the assessee has ventured in the nature of trade, commerce or business during the relevant year and has received fees as consideration for services rendered in excess of ` 10 lakhs, the proviso to Sec.2(15) are invoked. Aggrieved by the assessment orders in the respective assessment years, the assessee preferred appeals before the Commissioner of Income-tax(Appeals). The Commissioner of Income-tax(Appeals) after examining the objects, the activities being carried out by the assessee and the decision of the Ahmedabad Bench of the Tribunal in the case of Ahmedabad Management Association vs. JDIT 28 ITR(Trib.) 349, held that the activities of the assessee are covered by one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said decision of the Tribunal. 6. We have heard the submissions made by the representatives of both the sides and have perused the orders of the authorities below. It is an undisputed fact that the assessee is enjoying benefit of sec.12A(a) of the Act since 1980. The assessee is carrying on its charitable activities viz. providing education in accordance with its objects. The status of the assessee as charitable organization has been accepted by the Department right from the beginning. For the first time in assessment year 2009-10, activities and the objects of the assessee were questioned. 7. The stand of the Revenue is that the assessee is not providing any charitable activity and if at all, the activities carried out by the assessee are charitable in nature, it is not for the purpose of education but fall within the ambit of "general public utility". Since, the assessee has been receiving fees as consideration for the services rendered, which are in excess of `10 lakhs, the assessee is not eligible to claim benefit u/s.11 of the Act. Whereas, the case of the assessee is that charitable activities carried out by the assessee are in the nature of education. The ld. Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se in which the word 'education' has been used in section 2(15) of the Act 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 a result of travel ling you acquire fresh knowledge . . . but this not the sense in which the word "education" is used in clause (15) of section 2. What "education" connotes in that clause is the process of training and developing the knowledge, skill, mind and character of students by normal schooling.' The Supreme Court, in the above observations by referring to the systematic instruction, schooling or training given to the young has only cited an instance in order to indicate as to what the word 'education' appearing in section 2(15) of the Act which defines 'charitable purposes' is intended to mean. We are certain that these observations were not intend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sroom may remain ideal for most of the initial education, it may become necessary to have a different outlook for further education. It is not necessary to nail down the concept of education to a particular formula or to flow it only through a defined channel. Its progress lies in the acceptance of new ideas and development of appropriate means to reach them to recipients." 5.5. Now, so far as reliance placed upon the decision of the Division Bench of this court in the case of Saurashtra Education Foundation (supra) by the learned advocate appearing on behalf of the Revenue is concerned, it is required to be noted that as such the Tribunal has considered the same in detail and has rightly held and observed that as such the said decision would assist the assessee rather than the Revenue. It is also required to be noted that as such in the said decision the Division Bench has not taken any contrary decision that of the decision of Gujarat State Co-operative Union (supra). It is to be noted that, on facts, it was held that the assessee cannot be said to be an educational institution and, therefore, the assessee would not be entitled to exemption as contemplated under section 10(22) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e" even if it incidentally involves the carrying on of the commercial activities. Thus, on a fair reading of section 2(15) of the Act read with Circular No. 11 of 2008, dated December 19, 2008, it appears that if the case of the assessee does not fall within the first three limbs of section 2(15) of the Act, i.e., relief to the poor ; education or medical relief and if it falls in the fourth limb, i.e., advancement of any other object of general public utility and it is found that such activity of advancement of any other object of general public utility involves carrying on of (a) any activity in the nature of trade, commerce or business ; or (b) any activity of rendering any service in relation to any trade, commerce or business ; for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention of the income from such activity, the same shall not be considered for "charitable purpose" and shall not be entitled to exemption under section 11 of the Act. 5.7. In the present case, as observed hereinabove and rightly held by the Tribunal, the activities of the assessee would fall within the definition of "charitable purpose" as per section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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