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TMI Blog2015 (5) TMI 752X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) As seen from the audited financial statements for the year ending 31.3.2010 and 21.3.2011, most of the fee collections are from EAMCET coaching. Imparting training to appear at some specified examination would not come under education. * (b) The assessee society is charging fee over and above the fee prescribed by the Govt. Therefore, it is clear case of sale of education by the assessee society as such the assessee cannot be considered as a charitable institution. Hence, the activity of the assessee no longer remained charitable within the meaning of section 2(15) of the Act. * (c) The assessee society is collecting fee from all children. The society is not established for the purpose of imparting education to the poor without any fee of with concession in the fees. The section 2(15) defines 'relief of poor, education, medical relief etc. Without any relief to the poor public utility at large, mere running of education institution cannot be said to be a 'charitable institution'. * (d) Moreover, the assessee is not holding any property under the Trust for charitable purpose. It is not deriving any income from the property held under Trust and any income in the form of volunt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t he referred to the approvals given by the Board of Intermediate Education. The learned Authorised Representative further submitted that the training given towards preparing the students for appearing in various entrance examinations like EAMCET, IIT, AIEE etc., is in addition to the imparting of education in the Jr. College and is only a value addition. In this context it was submitted that if training relating to the entrance examinations are not given to the students along with normal curriculum, then no parent would be willing to send their children to the college. Thus, only looking at the need of the hour, in addition to the normal intermediate course, the assessee is also imparting education towards entrance examinations. The learned Authorised Representative submitted that the term education has not been defined in the Act. Therefore, any kind of knowledge imparted to develop skill, character, and knowledge of the students would be within the meaning of education. Therefore, the conclusion of the CIT that giving coaching to students is not education is without any basis. As far as allegation of the CIT that assessee is charging fees in excess over the fees prescribed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oved that the assessee has not granted any concessions towards the fees to the poor students. As there is no charitable activity by the assessee, the conditions of sec 2(15) is not fulfilled, hence assessee is not eligible for registration. It is submitted that as the assessee is purely involved in a commercial activity, it cannot be granted registration under section 12AA of the Act. In support of such contention, he relied upon the following decisions: * MP H.C. Indore Bench in the cae of K.D.Wires P Ltd vs. Union of India 319 ITR 360 * Aditanar Educational Institution v. Addl. CIT (1997) 224 ITR 310 (SC) 224 ITR 310 9. We have considered the submissions of the parties and perused the materials on record. We have also carefully applied our mind to the decisions relied upon by the parties. As can be seen learned CIT has refused to grant registration under section 12AA basically for the following reasons: * The majority of fees were collected for EAMCET coaching i.e. imparting training to appear at some specified examination which would not come under the definition of education. * The society is charging fees over and above the fees prescribed by the govt. and therefore, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that the assessee is not imparting any education, but only giving coaching for EAMCET examination. However, in our view such finding of the CIT is not based on facts on record. As can be seen the assessee has established a Jr. College in the name and style of R.K. Science and Commerce Jr. College which is imparting education in two year intermediate course. This fact is clearly evident from the affiliation granted on 9.4.2012 by the Board of Intermediation, A.P. Therefore, there cannot be any doubt that the assessee is running an educational institution which is as per the objects of the society. 13. It may be a fact that in addition to the general curriculum of intermediate course, assessee is also giving training/preparing students for various entrance examinations like EAMCET, IIT, AIEEE etc. However, that cannot take us away from the fact that the basic object of the assessee is imparting of education which the assessee in fact is carrying on. The other activities like preparing students for EAMCET, IIT, AIEEE entrance examinations is only ancillary to the main objects. That being the case, it cannot be said that the assessee is not imparting education. The term 'educatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re not relevant. On a plain reading of section 12A, 12AA and 11, we do not find any restriction imposed therein for granting registration to a Trust or institution imparting education. Moreover, the definition of 'charitable purpose' as contained under section 2(15) also recognizes education as one of the charitable activity. That being the case, registration under section 12AA cannot be denied to an educational institution, because it is otherwise eligible for exemption under section 10(23C). Furthermore, ITAT Hyderabad Benches have consistently expressed the view that an educational institution can avail exemption either under section 10(23C) or sec. 11 if the conditions imposed under these provisions are satisfied. Moreover at the time of granting registration under section 12AA, the CIT has to look into the objects of the society and genuineness of its activities. As can be seen, there cannot be any doubt that one of the objects of society is to impart education and for achieving that object, assessee has established an educational institution and imparting education. Therefore, there cannot be any doubt with regard to the charitable object of the society. So far as the genuine ..... X X X X Extracts X X X X X X X X Extracts X X X X
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