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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 ..... tre (hereinafter referred to as 'the assessee') by filing the present appeals, sought to set aside the impugned order all dated 06.03.2017 passed by the ld. CIT (Appeals), Aligarh qua the assessment years 2010-11, 2011-12 & 2013-14 on the identical grounds inter alia that :- "1. That the Ld. Commissioner of Income- Tax( Appeals) erred in observing that the appellant educational institution is not existing solely for educational purposes and thus, dismissing the claim of exemption U/S 10(23C)(iiiab) of the Income-Tax Act. The observation is unwarranted and against facts of the case. 2. That the appellant institution is solely engaged in imparting education and in the same process train students by sending them to sports industries etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 not running an institution to provide systematic education by relying upon the decision rendered by the Hon'ble Supreme Court in the case cited as Solo Trustee Loka Shikshak Trust vs. CIT - 101 ITR 234 and thereby assessed the net taxable income at Rs. 56,48,582/-, (-) Rs. 18,23,401/- and (-) Rs. 5,48,82 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epartment of Industrial Development through its Governing Council and the element of profit making is not there. 8. Before proceeding further, it is imperative to examine the aims and objects of the assessee society which are extracted for ready perusal as under :- "III. The main objectives for which the Society is established are: 1. To develop new technologies and upgrade the existing level of technology of sports goods and leisure time equipment. 2. To develop new products/design of sports goods and leisure time equipments 3. To 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 contro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) proceeded to decline the exemption under section 10(23C)(iiiab) to the assessee on the sole ground that assessee society is running process-cum-product development centre and involved in multifarious activities and all the activities cannot be considered to be educational in nature. 12. Under section 10(23C)(iiiab), any income received by a person on behalf of any university or any educational institution existing solely for educational purposes and not for purposes of profit and which is wholly or substantially financed by the Government, is entitled for exemption. 13. AO relied upon the decision rendered by Hon'ble Supreme Court in the case of Solo Trustee Loka Shikshak Trust (supra) wherein the word 'education' as referred in se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rting 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 prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d/2014 vide order dated 08.07.2015 also directed the DIT (E) to reconsider the ground of registration under section 12AA of the Act to Central institute of Delhi Design engaged in imparting training facilities to technical personnel in designing and in making tools, dies and moulds, which activities are identical to the assessee society. So when the co-ordinate bench of the Tribunal had already directed the CIT (E) to reconsider the grant of registration under section 12AA of the Act in the light of the numerous decisions referred at page 6 of the order passed in ITA No.410/Del/2012, the claim of the assessee for exemption u/s 10(23C)(iiiab) cannot be rejected. Moreso exemption sought for by assessee society u/s 10(23C) (iiiab) is independe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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