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TMI Blog2017 (3) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act, 1961 on the ground that the activity undertaken by the appellant was in the nature of commercial activity and not in furtherance of education; 2. Not considering the ratio of various judgments relied upon by the appellant which clearly clinched the issue in favour of the appellant; 3. Passing the order in a most perfunctory manner and without discussing any of the judgments relied upon by the appellant" 2. The issue raised in grounds of appeal no.1 is qua denying the exemption u/s 10(23C) (iiiad) of the Income Tax Act, 1961 on the ground that the activity undertaken by the appellant was in the nature of commercial activity and not in furtherance of education. 3. Brief facts of the case are that during the course ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erved that the assessee made a profit of Rs. 2,93,527/-. It was stated by the ld. AR that it was factually incorrect as this was total course fees received by the assessee and not the profit and finally denied exemption as claimed by the assessee by holding that the activities of the assessee were in the nature of commercial within the meaning of section 2(13) of the Act and determined the total income of the assessee at Rs. 10,81,259/- vide order dated 30.12.2010 passed under section 143(3) of the Act. Aggrieved by the order of the AO, the assessee preferred an appeal before the FAA, who dismissed the appeal of the assessee by considering all the details and submissions as made before him which have been incorporated in para 3.2 to 3.9 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decisive test of 'sole purpose of education' has not been fulfilled by the appellant. The A.O. has rightly relied on the judgment in the case of Bihar Institute of Mining & Mining Surveying vs. CIT 208 ITR 608 (Patna) wherein it was held that "arranging private tuitions would not also entitle the institution to be treated as an educational institution". I find that the appellant is charging commercial rates in respect of 5 out of 7 courses undertaken by it. The appellant is running. the private course "CMC Ltd." where the fees are as prescribed by CMC Ltd. itself.' Therefore, where the appellant is acting as a franchise of CMC Ltd. itself. Therefore, where the appellant is acting as a franchise of CMC Ltd, I am of the opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 crores by referring to the copy of the balance sheet as filed at pages 3 to 10 of the paper book and pointing out that the course receipts of the assessee from seven courses were Rs. 72,14,822/- and therefore the observations as made by the AO were wrong on facts and on law. Finally the ld. AR relied on the couple of decision in defenece of his arguments in the case of Deputy Director of Income Tax V/s Shanti Devi Progressive Education Society reported in (2012) 340 ITR 320 (Del) and the decision in the case of Vanita Vishram Trust V/s CIT reported in (2010) 327 ITR 121 (Bom). 5. The ld. DR argued that the conclusion drawn by the ld. CIT(A) that the assessee's activity was of commercial nature especially in view of the facts that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1993-94 forming part of the paper book at pages 29 to 48, reveals that in all these years the assessee has been claiming exemption u/s 10(23C (iiiad) which has been accepted by the revenue and only for the year under consideration it has been denied. In the case of Deputy Director of Income Tax V/s Shanti Devi Progressive Education Society (supra), the Hon'ble Delhi High Court held that the assessee is entitled for exemption under section 10(23C) (iiiad) of the Act where there is no diversion of the funds to the members of the assessee. Similarly, in the case of Vanita Vishram Trust , the Hon'ble Court has held that where the assessee was carrying out activities for a period of 8 years of educational nature , the Chief Commissioner has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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