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TMI Blog2019 (2) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and training not as per requirement of the industry. When the assessee society is admittedly getting raw material from the various industries to produce the sport goods for them and the job charges paid by them are again used for running the training institute it can not be said by any stretch of imagination that assessee society is not being run for education / training purpose. Particularly, there is no case of the Revenue that the main objects of the assessee society is profit making rather declining the exemption on the sole ground that the assessee institution is not existing solely for educational purposes. So, we are constrained to record that the word ‘education’ is to be given wide interpretation which includes training and developing the knowledge, skill, mind and character of the students by normal schooling. So, we are of the considered view that assessee society is engaged in imparting training to the students in manufacturing the sport goods and leisure equipments without any profit motive. Thus the assessee society, substantially financed by the Government of India, is engaged only in imparting research based education/ skill training to the students in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of provisions contained in Section 12AA of the Income-Tax Act, the rejection of the same is bed in law. 3. Briefly stated the identical facts necessary for adjudication of all the aforesaid three appeals of assessee pertaining to Assessment Years 2010-11, 2011-12 2013-14 are : Assessee society is engaged in conducting various short duration training programs of computer training, Doner, CAD/CAM/D.L.G. Tech, DST, Mech. Web Designing, audit CAD, Linus C++, training in Computer Accounting System (TCAS), Tally 9, Leg guards Gloves (STST) Hand Gloves Manufacturing, Shuttle Cock Manufacturing, cricket bat manufacturing, carom board manufacturing, Leg guard manufacturing, batting gloves manufacturing, football manufacturing, Cricket ball manufacturing (Jalandhar) and leather workshop, training in R/P workshop, wood work shop etc.. Assessee society claimed exemption under section 10(23C)(iiib) of the Income-tax Act, 1961 (for short the act ). Declining the explanation furnished by the assessee society to prove its eligibility for claiming exemption under section 10(23C)(iiiab), Assessing Officer proceeded to disallow the exemption on the ground that the assessee society is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... identify export-worthy sports goods product and leisure time equipments, develop and establish technologies for their manufacture. 4. To improve the quality of these products through quality control and standardization to meet national and international standards and also make this industry competitive. 5. To impart training to craftsmen and supervisors from the industry in the field of manufacture and development of sports goods. 6. To collect, collate and disseminate technical information and know-how to the user industry by providing documentation services and coordinate with research and development institutions. 7. To render technical support services through the Centre's common facility work-shop/laboratories in the above areas. 8. To conduct market research and identify products for domestic and export markets. 9. The conjoint reading of the main objects of the assessee society goes to prove that it is engaged in multifarious activities related to education and training for production of sports goods and leisure time equipments. 10. Perusal of the audited income and expenditure account for the year ending 31.03.2018 avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts is not to produce goods of world standard by making necessary marketing research and by identifying products for domestic and export market, such training would be of no use and the students who have been given training would not be in a position to get placement in the sport goods and leisure time equipments industry. Moreover the entire emphasis is laid by our Government on skill development by departing from age old system of imparting academic education and training not as per requirement of the industry. 16. Furthermore, when we examine the audited income and expenditure account of the assessee society it shows that substantial income is from training courses and there is a miniscule income from job receipts. When the assessee society is admittedly getting raw material from the various industries to produce the sport goods for them and the job charges paid by them are again used for running the training institute it can not be said by any stretch of imagination that assessee society is not being run for education / training purpose. Particularly, there is no case of the Revenue that the main objects of the assessee society is profit making rather declining the exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 19. Hon ble High Court of Allahabad in case of City Montessori School vs. UOI (2009) 315 ITR 48 (All.) decided the identical issue defining the word systematic research based education and training as under :- The assessee was not only providing traditional education, but was also preparing students by providing guidelines to get admissions in the professional institutions to pursue their higher studies. The sense, in which the word 'education' has been used in section 2(15), is the systematic instruction, schooling or training given to the young in preparation for the work of life. Similarly, extending financial assistance/scholarship, etc., to the students for their educational purpose would squarely fall within the connotation of 'education I as per the ratio laid down in the case of CIT v. Saraswath Poor Students Fund [1984] 150 ITR 142, 147 / [1985] 20 taxman 211 (Kar.). Thus, the assessee was engaged in educational activities which fell under charitable purpose. 20. In view of what has been discussed above, we are of the considered view that the assessee society, substantially financed by the Government of India, is engaged only in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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