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TMI Blog2022 (7) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... activities' of the assessee and they cannot be considered different than activities of the society of 'education. It has been further observed that undisputedly the assessee is carrying out educational activity and running various colleges, especially Medical Colleges and Charitable Hostels and thus income from charitable activities was nil. The assessee is also running hostels for the students as per the UGC Guidelines which is an ancillary activity. The Tribunal has relied upon judgment in the case of Krishna Chatirtable Society [ 2017 (9) TMI 1030 - ITAT DELHI] wherein it has been observed that providing of hostel facilities and transport facilities to the student and staff member of the educational Institute cannot be consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tutes, Medical Colleges and Charitable Hospitals which is affiliated with All India Counsel for Technical Education. It is also, undisputed that assessee is carrying educational activity and running various colleges especially Medical Colleges and Charitable Hospitals. The income from charitable activities declared by the assessee was Nil and the assessee earned gross receipt of Rs.61,62,60,476/- on account educational activity whereas the assessee is also running hostels for the students as per the UGC Guidelines which is an ancillary activity. In case of Krisha Charitable Society vs. Addl. CIT in ITA No.4639/Del/2015 for AY 2011-12 dated 15.09.2017, the Tribunal held as under: 11. We have carefully considered the rival contentions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 428 (All) with respect to the visitors' hostel mantained by the Indian Institute of Technology where lodging and boarding facilities were provided to persons who would come to the Institute in connection with education and the academic activities of the Institute. It was observed that the statutory obligation of maintenance of the hostel, which involved supply, and sale of food was an integral part of the objects of the Institute nor could the running of the hostel be treated as the principal activity of the Institute. The institute could not be held to be doing business. Further means being supplied in a hostel to the scholars, Visitors, guest faculty etc. cannot be eligible to sales tax where main activity is academic as held in schol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correct. The ClT (A) and the Assessing Officer failed to consider that the hostel facility is incidental to achieve the object of providing education as per object of the trust and hence comes under the charitable purpose which is exempt under Section 1l of the Income Tax Act,1961. Thus, the appeal of the assessce is allowed., The Income Tax Appellate Tribunal has recorded specific finding that in the absence of any evidence to show that the hostel facilities were provided to anybody other than students and staff of the trust, the hostel facilities provided by the educational institution shall be construed to be the intrinsic part of the 'educational activities' of the assessee and they cannot be considered different than acti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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