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TMI Blog2017 (1) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue to be decided in this appeal is as to whether the ld CITA is justified in treating the tour expenses of Rs. 29,43,011/- and fashion show expenses of Rs. 36,53,054/- as application of income in the facts and circumstances of the case. 3. The brief facts of this issue is that the assessee is a charitable society registered u/s 12A of the Act with effect from 1.11.1973. The main activities of the society are imparting education. The assessee society runs a college in the name of 'Bhawanipur Education Society College', a vocational art academy, a secondary school and a higher secondary school. The ld AO observed that the assessee society had submitted audited accounts for all the units i.e schools, colleges, vocational art academy and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Society College (b) Functions and Festivals - Annual Fashion Show and Mr. and Mrs University expenses. 3.2. The assessee replied before the ld AO as below:- "The management has always felt that 'seeing is believing' and has been the first among the Educational Institutes to undertake foreign tours for the benefits of the students. We believe that hands on approach will make the students more competent to handle the competitive world once they pass out of the college. This educational foreign tours are open to all students of the Institute and the selection is made depending upon their aptitude, educational/academic brilliance and other requirements." 3.3. The ld AO concluded that only a section of the students get the opportunity of f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the students which was aimed to development of the students. Accordingly he held that the same would amount to application of income for the objects of the assessee society. 5. With regard to fashion show and Mr. & Mrs. University expenses, the ld CITA observed that the college is running a vocational training department which has several students and has fees earning of close to Rs. 40 lacs during the year under appeal. He observed that this department of the college holds annual fashion show with a view to providing a platform to their students to display what they have learnt. Such platform helps the student in development of skill as well serves as a platform for meeting of students and the industry which ultimately helps in employmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee society is an educational institution imparting education and is granted registration u/s 12A of the Act with effect from 1.11.1973 and its income is exempt u/s 11 of the Act. We find that the assessee society is also having registration u/s 10(23C) of the Act as an educational institution. The ld AR argued that the society is running a degree college affiliated to Calcutta University as well as running a school affiliated to ISC Board. He stated that the college is also recognized by the University Grants Commission (UGC) u/s 2(f) and 12(b) of the UGC Act. We find that the ld AO had only treated the tour expenses and fashion show expenses as not applied for the charitable objects of the society. Now the short question that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se type of tours would also provide greater close bonding between the students and the teachers which in turn would increase the confidence of the students to interact with the teachers thereby improving the communication and interactive skills of the students. We find that the ld CITA observed that the 2015 Secondary Curriculum issued by the Central Board of Secondary Education , New Delhi oat page 234 had suggested essential activities for students which include things like using of bus, milking of dairy animals, helping organizing picnics, conducting tours and excursions and many other activities. Accordingly he held that the view of the ld AO that tours do not form part of conventional education as incorrect. We find that the education ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc through the fashion shows. We hold that these shows admittedly provides a platform for the students to display their talents and also to exhibit what they had learnt in the classroom. This also creates lot of employment opportunities for the students. We hold that these events help in students shedding their inhibitions and come out of stage fear which in turn enables the students to meet the society at large with greater confidence. This is similar to institutes like National Institute of Fashion Technology set up by Government of India who are also holding fashion shows for similar purposes, as rightly pointed out by the ld CITA. We hold that this also forms an integral part of education, learning and training of students. We find that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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