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TMI Blog2017 (3) TMI 1378X X X X Extracts X X X X X X X X Extracts X X X X ..... ent case in holding the objects and activities of the Trust as not charitable in nature. 2.2 The Ld. CIT(E) erred in law as well as on the facts of the present case in refusing the assessee to grant exemption u/s 12AA of the IT Act, 1961. 3. The appellant prays your Honour's indulgence to add, amend, modify or delete all or any ground of appeal." 2. Briefly, stated the facts are that the assessee filed an application in the form no. 10A, seeking registration u/s 12AA of the Income Tax Act, 1961(hereinafter referred to as the Act). The said application was rejected by the ld. CIT on the ground that the activity of the trust are not charitable nature, as it is running technical course. The ld. Counsel for the assessee reiterated the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit Fee 5618.00 Bank Charges 112.00 Convenyance Exp. 4274.00 Legal Fee 5100.00 Printing & Stationary 8463.00 Rent Exp. 30000.00 Salary 110486.00 Surplus transferred to corpus fund (-) 11978.00 Total 169500.00 Total 169500.00 From the Income & Expenditure account, it is clear that the trust is earning income in the form of fee charged from running of vocational courses. This sort of activity cannot be regarded as "education" within the meaning of section 2(15) of the Act. 7. The word "education" used in section 2(15) for charitable purpose stipulates the systematic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the swindler who cheats you teach you a lesion an in the process make you wiser though poorer. If you visit a night club, you get acquired with and add to your knowledge about some of the not much revealed realities and mysteries of life. All this in a way is education in the great school of life. But that is not the sense in which the work "education" used in clause (15) of section 2. Wheat education connotes in that clause is the process of training and developing the knowledge, skill, mind and character of students by normal schooling." 8. From the above judgment of the Apex court it would be abundantly clear that there should be a systematic instruction to the students by way of normal schooling. Mere training activities may provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ercial lines and with a profit motive as per the object of the society. The ld. Counsel for the assessee has brought to our notice the decision of the coordinate bench rendered in the case of Additional Director of Income Tax(E) vs. Samudra Institute of Maritime Studies Trust ITA 2668/Mum/2012, wherein the coordinate bench decided the issue as under: "5. We have heard the arguments of both the sides and also perused the relevant material on record. It is observed that the claim for the assessee for exemption u/s 11 was disallowed by the AO in AY-2007- 08 on the similar ground and the order of the Ld. CIT(A) reversing the order of the AO and allowing the claim of the assessee for exemption claim u/s 11 was upheld by the Tribunal vide its o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surplus in the non-approved courses than the approved courses cannot be a ground for denial of exemption u/s 11 as long as the Trust is imparting education as per the objects of the Trust. In this view of the matter and in view of the detailed observation given by the ld. CIT(A) on this issue we do not find any infirmity in the same and accordingly the same is upheld. The grounds raised by the Revenue are accordingly dismissed." 6. As the issue involved in the year under consideration as well as all the material facts relevant thereto are similar to that of assessment year 2007-08, we respectfully following the decision of co-ordinate Bench of this Tribunal rendered for assessment year 2007-08 and uphold the order of the ld. CIT(A) allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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