9911796707
TMI Blog2017 (1) TMI 453X X X X Extracts X X X X X X X X Extracts X X X X ..... fees of participants shows that assessee had engaged in some sort of lectures/training relating to the objects of the trust i.e. education and training to the bottom line employees in quality and improvement methods. It was not controverted by the department. It was only objected to charging of fees. In our considered view, the assessee has carried on the activities of imparting training to the bottom line employees and there is no element of profit in the said activity as the surplus generated out of the activities is again applied for the charitable activity only. Moreover, the assessee quoted various case laws in support of its claim that they are in the field of education. When analysed closely, all the institutions i.e. Ahmadabad M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 2,56,61,942/- by adding excess of income over expenditure and disallowing the depreciation. 3. On appeal, the CIT(A) confirmed the action of the AO. 4. Aggrieved by the order of the CIT(A), the assessee is in appeal before us raising the following grounds of appeal: 1. The order of the learned Commissioner of Income Tax, Hyderabad, is against the law, weight of evidence and probabilities of case. 2. Your assessee submits that the CIT(A) ought to have appreciated the fact that your Assessee is carrying on education and training activities, based on the various case laws cited before CIT(A), within the meaning of education under section 2(15) of the Income Tax Act, 1961. 3. CIT (A) ought to have appreciated the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record. As submitted by the ld. AR of the assessee, similar issue came up for consideration before the ITAT in assessee s own case for AY 2010-11, wherein the Bench has held as under: 9. Considered the submissions of both the counsels and material facts on record as well as the orders of revenue authorities. There is no dispute on the fact that the trust is functioning since 1982 and 12A registration is granted as well as enjoying exemption u/s 11. There is no change in trust nor method of accounting since inception. After amendment to section 2(15) of the Act, the department is relooking at the objects and functioning of the trust. After analyzing the submissions, the question raised before us is that whether the trust, no doubt chari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relief to the poor, education or medical relief. Thus, where the purpose of a trust or institution is relief to the poor, education or medical relief, it will constitute charitable purpose even if it incidentally involves the carrying on of the commercial activities. In the present case, the AO and CIT(A) have held that there exists income over expenditure and the assessee is charging certain fees for activities carried on by it, which amounts to carrying on of commercial activities, hence, denied the exemption u/s 11. We are of the view that mere charging of fees for carrying activities will not loose the character of charity and in this case, the department has already granted registration treating the activities as charitable but has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not in any commercial activities as held by the AO. Thus, AO cannot deny the benefit u/s 11 of the Act. Accordingly, the grounds raised by the assessee in this regard are allowed. As the facts and grounds are materially identical in the year under consideration to that of AY 2010-11, respectfully following the conclusions drawn therein, we direct the AO to allow the assessee s claim of exemption u/s 11 of the Act. Accordingly, ground Nos. 1 to 5 are allowed. 8. As regards ground No.6 regarding disallowance of depreciation, since we have allowed the assessee s claim of exemption u/s 11 of the Act, we direct the AO to compute the assessee s depreciation claim accordingly. 9. In the result, appeal of the assessee is allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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