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TMI Blog2024 (10) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... property cannot be said to be vested in the trust for charitable purpose and purchase of two cars by the society alleged to be meant for personal use of the members of the society - ITAT allowed exemption - HELD THAT:- The law as laid down in M/S NEW NOBLE EDUCATIONAL SOCIETY [ 2022 (10) TMI 855 - SUPREME COURT] requires to be applied and the view expressed by the Kerala High Court M/S. ANNADAN TRUST [ 2018 (8) TMI 518 - KERALA HIGH COURT] cannot be accepted to be the correct interpretation. We are also of firm view that vocational education is a form of education which is necessary for the development of an individual for the purpose of earning his living. Vocational training has been now recognized to be as important as any other field o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 30.06.2018 was set aside. 3. The respondent-Society had applied for registration pleading that it was running a private Industrial Training Institute imparting vocational training to the students, and the same was duly affiliated and regulated by National Council for Vocational Training (NCVT). 4. The application was rejected by the CIT (E) on the ground that gaining of knowledge or skill does not qualify for the label education and does not come within the four corners of education as defined in the case of Sole Trustee Loka Shikshana Turst vs. Commissioner Of Income Tax (101 ITR 234). It further observed that education would not be considered in the wide and extended sense, and acquiring of technical knowledge would not consti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the society under Section 12A and 12AA of the Act. 8. Learned counsel for the appellant was asked as to whether the Government reimburses the amount to the respondent-society under the Skill Development programme, and an affidavit has been filed stating that of the total receipts of Rs. 93,06,599.50/-, amount of Rs. 9,51,500/- was reimbursed towards the training fees under the Pradhan Mantri Kaushal Vikas Yojana. The affidavit therefore reflects that the institute is imparting training for implementation of one of the welfare schemes of the Central Government. 9. Learned counsel has contended that training is not a systematic training and the ITAT has erred in directing the registration of the society under Section 12A and 12AA of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for the work of life and, in our view, duly fall within the purview and scope of the term 'Education' as used in section 2 (15) of the Act. 5. So far as the observation of the CIT (E) that the income of the assessee is not from voluntary donation or that the same cannot be said to be income from property held under the trust is concerned, we are not convinced with the above observation of the Ld. CIT (E) for rejecting the claim of the appellant trust. The appellant trust is reimbursed the amount spent by the Government for carrying out its 'education / training programme as per the skill development programme of the Government. Thus, in our view, it can be safely said to be income generated from the activity of the appellant t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct ground for claiming business expenditure, but not to get a registration as a charitable institution. 7. In deciding the issue, it is very pertinent that the intermediary institution, has paid money for the implementation of the Schemes. The implementation of such Schemes would not lead to any charitable activity by the respondent-assessee entitling registration under Section 12AA. The transaction as admitted by the assessee is not one which would enable registration under Section 12AA. The proceedings were initiated for cancellation, on the report of the AO that the objectives of the Trust has been departed from and the assessee is carrying on business as sub-contractor, implementing the welfare schemes of various State Governments, supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivities of the such trust are not genuine and not being carried out in accordance with the objects of the trust or institution. The power was, therefore, not available as on the day when the CIT cancelled the registration i.e. on 02.03.2010. 17. XXXX XXXX 18. Thus, we find that the facts were almost similar to the facts of the present case as in the aforesaid case Industrial Infrastructure Development Corporation (Gwalior) M.P. Limited s case (supra), the Commission had cancelled the registration under Section 12A of the Act dated 13.04.1991 by its order dated 29.04.2002 and on 29.04.2002 the Commissioner was not empowered to cancel such registration. In view thereof, the questions of law no. 1, 3 and 4 are answered in favour of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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