ADIT(E), New Delhi V. The Institute of Chartered Accountants of India, New Delhi

ITA 1384/DEL/2011

• Counselvise Citation: 138420114 RSA 2011
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 09-01-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 17-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H L DIHANA
• Assessee Lawyers: RAJESH JAIN
• Keywords: Charitable institution
• Section: 263; 11; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH H DELHI) BEFORE SHRI A.D. JAIN AND SHRI K.G. BANSAL ITA NO. 1384(DEL)2011 ASSESSMENT YEAR: 2006-07 ASSTT.DIRECTOR OF INCOME TAX (E) THE INSTITUTE OF CHARTERED ACCOUNTANTS TRUST CIRCLE IV, NEW DELHI. V. OF INDIA,PB 7100, ICAI BHAWAN, IP MARG, NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI H.L. DIHANA, CIT, DR RESPONDENT BY: SHRI RAJESH JAIN, C A ORDER PER A.D. JAIN, J.M. THIS IS DEPARTMENTS APPEAL FOR THE ASSESSMENT YEAR 2006-07 AGAINST THE ORDER DATED 31.12.2010 PASSED BY THE LEARNED C OMMISSIONER OF INCOME TAX (APPEALS)XXI, NEW DELHI, CONTENDING THAT THE LD . CIT(A) HAS ERRED IN HOLDING THAT THE ACTIVITIES CARRIED ON BY THE INSTI TUTE OF CHARTERED ACCOUNTANTS OF INDIA (ICAI FOR SHORT), IN CONDUCT ING VARIOUS COURSES AND GIVING INSTRUCTIONS THROUGH COACHING CLASSES FOR WH ICH SEPARATE FEE WAS CHARGED AND HOLDING SEMINARS/CONFERENCES AND FURTHE R LAYING DOWN ACCOUNTING STANDARDS FOR COMMERCIAL TRANSACTIONS CO ME WITHIN THE PURVIEW OF EDUCATION WITHIN THE MEANING OF SECTION 2(15) OF THE INCOME TAX ACT ITA NO. 1384(DEL)2011 2 AND IN NOT TREATING THE INCOME OF COACHING CLASSES AS AN ACTIVITY OF THE BUSINESS. 2. THE DIRECTOR OF INCOME TAX(E), TRUST CIRCLE IV, NEW DELHI DETERMINED THE INCOME OF ICAI AT ` 33,47,92,000/- IN A SCRUTINY ASSESSMENT U/S 143(3) OF THE ACT, AGAINST NIL INCOME DECLARED BY THE ICAI( THE ASSESSEE). WHILE DOING SO, THE AO OBSERVED THAT T HE ASSESSEE, ICAI DID NOT PROVIDE ANY SCHOLASTIC EDUCATION, SYSTEMATIC INSTRU CTION, SCHOOLING AND TRAINING TO THE ENROLLED CANDIDATES AND THAT CONSEQ UENTLY, THE ACTIVITY CARRIED OUT BY THE ICAI DID NOT FALL UNDER THE CATEGORY OF EDUCATION WITHIN THE PROVISIONS OF SECTION 2(15) OF THE ACT, WHICH DEFIN ES CHARITABLE PURPOSE. 3. THE LEARNED CIT(A) SUBVERTED THE ORDER OF THE AO BY HOLDING, INTER ALIA, AS FOLLOWS:- 2.3 I HAVE CONSIDERED THE SUBMISSIONS MADE BY THE LEARNED AR OF THE APPELLANT INSTITUTION VIS-A-VIS THE FINDING OF THE ASSESSING OFFICER MADE OUT IN THE ASSESSMENT ORDER. PARLIAMENT ENACTE D CHARTERED ACCOUNTANT ACT, 1949 WITH THE OBJECTIVE FOR THE REG ULATION OF PROFESSION OF CHARTERED ACCOUNTANTS AND UNDER THE S AID ACT. THE CHARTERED ACCOUNTANT REGULATIONS ACT WAS FURTHER E NACTED. THE INSTITUTE OF CHARTERED ACCOUNTANTS HAS ITS HEADQUAR TERS IN NEW DELHI AND THERE ARE FIVE REGIONAL COUNCILS LOCATED IN MUM BAI, CHENNAI, KOLKATA, KANPUR AND NEW DELHI AND 118 BRANCHES SPRE AD ALL OVER THE COUNTRY. THE ICAI HAS ALSO ITS PRESENCE OUTSIDE IND IA LOCATED IN ABU DHABI, BEHRAIN, BOTSOANA, DOHA, DUBAI, INDONESIA, J EDDAH, LONDON, NEW YORK ETC ETC. THE APPELLANT INSTITUTE, APART FR OM CONDUCTING COURSE OF CHARTERED ACCOUNTANCY, PROVIDED EDUCATION AND TRAINING IN POST QUALIFICATION COURSES IN CORPORATE MANAGEMENT, TAX ITA NO. 1384(DEL)2011 3 MANAGEMENT, INFORMATION SYSTEMS AUDIT, INTERNATIONA L TRADE LAWS AND OTHER RELATED COURSES. ON PERUSAL OF THE AUDITE D FINAL ACCOUNTS OF THE APPELLANT INSTITUTE FOR THE YEAR UNDER APPEA L. IT IS FOUND OUT THAT THE INCOME IS REPRESENTED BY FEES RECEIVED AMOUNTIN G TO ` 86.96 CRORES INTER-ALIA ON ACCOUNT OF DISTANT EDUCATION F EES, INFORMATION SYSTEM, AUDIT COURSE FEE, GENERAL MANAGEMENT SKILL COURSE FEE, COACHING CLASS INCOME, INSURANCE & RISK MANAGEMENT COURSE, INTERNATIONAL TRADE LAWS AND WTO COURSE ETC ETC APA RT FROM EXAMINATION FEE, MEMBERSHIP FEE. THE COMPONENT OF F EE AS REFLECTED IN THE AUDITED ACCOUNTS ITSELF REFLECTS VARIOUS EDUCAT ION ACTIVITIES CONDUCTED BY THE APPELLANT INSTITUTE IN DIFFERENT S PHERES OF PROFESSIONAL EDUCATION APART FROM THE COURSE OF CHA RTERED ACCOUNTANCY. THIS VERY FACT NEGATES THE CONTENTION OF THE ASSESSING OFFICER, IN ASSERTING THAT THE PREDOMINANT OBJECT O F THE ASSESSEE IS ONLY TO CONDUCT EXAMINATION FOR CHARTERED ACCOUNTAN CY AND REGULATION OF ITS MEMBER AND ARTICLE CLERKS AND IT IS NOT PROVIDING ANY SYSTEMATIC INSTRUCTION AND TRAINING TO THE ENRO LLED CANDIDATES. THE RELIANCE OF THE ASSESSING OFFICER ON THE JUDGME NT OF HONBLE SUPREME COURT IN THE CASE OF SOLE TRUSTEE LOK SHIKS HANA TRUST 101 ITR 234 IN NEGATING THE CLAIM OF THE APPELLANT OF G IVING EDUCATION TO THE ENROLLED CANDIDATES AND ITS MEMBERS IS ALSO MIS PLACED AS THE HONBLE SUPREME COURT, WHILE EXPLAINING THE WORD E DUCATION IS NOT ONLY SYSTEMATIC INSTRUCTION, SCHOOLING OR TRAINING GIVEN TO THE YOUNG IN PREPARATION FOR THE WORK OF LIFE BUT IT IS THE P ROCESS OF TRAINING AND DEVELOPING SHE KNOWLEDGE, SKILL, MIND AND CHARACTER OF STUDENTS. HONBLE GUJARAT HIGH COURT IN THE CASE OF SAURASHTR A EDUCATION FOUNDATION 273 ITR 139 REFERRED THE JUDGMENT OF GUJ ARAT STATE COOPERATIVE UNION 195 ITR 279 WHEREIN THE HONBLE J UDGES WHILE REFERRING THE JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF LOK SHIKSHANA TRUST CASE (CITED SUPRA), OBSERVED (ON PA GE 286 OF THE REPORT) :- THE SUPREME COURT, IN THE ABOVE OBSERVATIONS, BY R EFERRING TOT EH SYSTEMATIC INSTRUCTION, SCHOOLING OR TRAININ G GIVEN TO THE YOUNG HAS ONLY CITED ON INSTANCE IN ORDER TO INDICA TE AS TO WHAT TO WORD EDUCATION APPEARING IN SECTION-2(15) OF T HE ACT WHICH DEFINES CHARITABLE PURPOSE IS INTENDED TO M EAN. WE ARE CERTAIN THAT THESE OBSERVATIONS WERE NOT INTEND ED TO KEEP OUT OF THE MEANING OF THE WORD EDUCATION, PERSONS OTHER THAN YOUNG. THE EXPRESSION SCHOOLING ALSO MEAN THAT SCHOOL ITA NO. 1384(DEL)2011 4 INSTRUCTS OR EDUCATES. THE SUPREME COURT HAS OBSER VED THAT THE WORD EDUCATION ALSO CONNOTES THE WHOLE COURSE OF SCHOLASTIC INSTRUCTION WHICH A PERSON HAS RECEIVED. THIS CLEARLY INDICATES THAT THE OBSERVATIONS OF THE SUPREME COUR T WERE NOT INTENDED TO GIVE A NARROW OR PEDANTIC SENSE TO THE WORDEDUCATION. THE HONBLE GUJARAT HIGH COURT WHILE DEALING WITH T HE ARGUMENTS OF THE APPELLANT IN THE CASE OF SAURASHTR A EDUCATION FOUNDATION. (CITED SUPRA) MADE VERY IMPORTANT OBSER VATION FOR THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA (PA GE NO. 146- 147 OF THE REPORT) WHICH IS REPRODUCED HEREIN UNDER :- AS REGARDS THE ILLUSTRATIONS OF THE INSTITUTE OF C HARTERED ACCOUNTANTS OF INDIA, ALTHOUGH THE INSTITUTE WAS EA RLIER NOT RUNNING FORMAL CLASSES AND THERE WAS NO GEOGRAPHICA L PROXIMITY WHEN INSTRUCTIONS WAS BEING IMPARTED THRO UGH POSTAL TUITIONS, THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA HAS ALWAYS BEEN AN INSTITUTION SET UP, INTER-ALIA, FOR IMPARTING FORMAL EDUCATION AND FOR TESTING PROFICIENCY FOR EN TRY TO THE PROFESSION OF CHARTERED ACCOUNTANTS. THE INSTITUTE IMPARTS FORMAL EDUCATION IN ACCOUNTANCY AND CONNECTED SUBJE CTS IN ORGANIZED AND SYSTEMATIC MANNER. THE INSTITUTE IS A CCOUNTABLE AS PER THE PROVISIONS OF THE ACT ESTABLISHING SIT A ND THE INSTITUTE ALSO HAS DISCIPLINARY CONTROL OVER THE STUDENT WHO ARE REQUIRED TO BE REGISTERED WITH IT IN THE FIRST PLACE AND WHO APPEAR AT THE EXAMS BEING HELD BY THE INSTITUTE. HENCE, THE EXAMP LE OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA IS NOT OPPOSITE AND THE ASSESSEE IS NOT AT ALL COMPARABLE TO THE SAID I NSTITUTE THE APPELLANT ALSO RELIED UPON THE LATEST JUDGMENT OF HONBLE ITAT DELHI BENCH IN ITS OWN CASE FOR THE AS SESSMENT YEAR 2005-06, WHEREIN THE HONORABLE BENCH QUASHED T HE ORDER OF DIRECTOR OF INCOME TAX (EXEMPTIONS) WHEREI N IT WAS HELD THAT INCOME FROM COACHING TO THE APPELLANT IS NOT WITHIN THE OBJECTS OF THE CHARTERED ACCOUNTANT ACT AND REG ULATIONS AND ACCORDINGLY THE SAID INCOME IS INCOME FORM BUS INESS FOR WHICH THE APPELLANT WAS REQUIRED TO MAINTAIN SEPARA TE BOOKS OF ACCOUNTS U/S 11(4A) OF THE ACT. THE HONBLE BENCH IN ITA NO. ITA NO. 1384(DEL)2011 5 1853/DEL/2010 CATEGORICALLY HELD THAT INCOME FROM C OACHING FEES IS TOWARDS THE OBJECTIVES OF THE APPELLANT IN TERMS OF VARIOUS CLAUSES OF THE ACT AND REGULATIONS OF CHART ERED ACCOUNTANTS REGULATIONS. HONBLE BENCH ALSO HELD TH AT THE CONDUCTING OF COACHING CLASSES IS THE ACTIVITY OF E DUCATION OF THE STUDY OF THE COURSE OF CHARTERED ACCOUNTANCY FO R WHICH PARLIAMENT FORMED THIS INSTITUTION UNDER CHARTER AC COUNTANTS ACT IN 1949 AND HENCE COACHING OF STUDENTS PURSUING THE COURSE OF CHARTERED ACCOUNTANCY IS ACTIVITY OF EDUCATION C OVERED U/S 2(15) OF THE ACT, DEFINING CHARITABLE PURPOSES AND HENCE THE INCOME OF THE INSTITUTION IS EXEMPTED U/S 11 OF THE ACT. HONBLE BENCH ALSO HELD THAT THE CONTENTION OF DIRECTOR IN TREATING IT AS COMMERCIAL ACTIVITY IS NOT VALID. THE APPELLANT REL IED ON THE CONCLUSION OF THE BENCH GIVEN IN PARA 15 OF THE SAI D ORDER:- THE INSTITUTE AS SUCH MERELY RECEIVING COACHING F EE FROM STUDENTS FOR IMPARTING EDUCATION, CANNOT BE SA ID TO HAVE BEEN CARRYING ON BUSINESS AND ACCORDINGLY IT IS NOT REQUIRED TO MAINTAIN SEPARATE BOOKS OF ACCOUNTS AS ALLEGED BY D IT(E). THE INCOME OF THE COACHING CLASSES EARNED BY THE ASSESS EE INSTITUTE IS WITHIN ITS OBJECTS AND ITS REGULATIONS AND FURTH ER THESE ACTIVITIES ARE EDUCATIONAL ACTIVITY WITHIN THE DEFI NITION OF SECTION-2(15) OF THE ACT AND CONSEQUENTLY THEREFORE CANNOT BE ACTIVITY OF BUSINESS FOR WHICH SEPARATE BOOKS OF AC COUNTS ARE REQUIRED TO BE MAINTAINED. THE ORDER OF THE LEARNED DIT (EXEMPTION) IS THEREFORE NOT SUSTAINABLE AS THE INC OME OF THE INSTITUTE IS EXEMPT NOT ONLY U/S 10(23C)(IV) BUT A LSO U/S-11 OF THE ACT. THE INSTITUTE IS AN EDUCATIONAL INSTITUTE AND HENCE ITS INCOME WILL ALSO BE EXEMPT U/S-11 OF THE ACT. AS ED UCATION FALLS WITHIN THE MEANING OF CHARITABLE PURPOSE U/S 2(15) OF THE ACT. IN VIEW OF THE ABOVE FACTS AND ACTIVITIES CARRIED OUT BY THE APPELLANT INSTITUTE AND AFTER CONSIDERING THE J UDICIAL PRECEDENTS DISCUSSED ABOVE, I DIFFER WITH THE FINDI NG OF THE ASSESSING OFFICER THAT THE APPELLANT DOES NOT PROVI DE ANY SCHOLASTIC EDUCATION AND ONLY CONDUCT EXAMINATION F OR CHARTERED ACCOUNTANTS AND REGULATION OF ITS MEMBERS AND ARTICLE CLERKS. THE ACTIVITIES OF THE APPELLANT IN CONDUCTING VARIOUS COURSES AND GIVING INSTRUCTIONS THROUGH COA CHING ITA NO. 1384(DEL)2011 6 CLASSES TO ITS ENROLLED CANDIDATES / STUDENTS AND U NDER THE PROGRAMMED OF CONTINUED EDUCATION TO ITS QUALIFIED MEMBERS DISSEMINATION OF PROFESSIONAL INFORMATION / COURSES AND HOLDING SEMINARS / CONFERENCES AND FURTHER LAYING DOWN ACCO UNTING STANDARDS FOR COMMERCIAL TRANSACTIONS COME WITHIN T HE PURVIEW OF EDUCATION WITHIN THE PROVISIONS OF SECTION-2(1 5) OF THE ACT DEFINING CHARITABLE PURPOSE. 4. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSES SEE HAS SUBMITTED BEFORE US THAT THE MATTER STANDS COVERED BY THE DEC ISION OF THE HONBLE SUPREME COURT OF DELHI (JURISDICTIONAL HIGH COURT) IN DIRECTOR OF INCOME TAX (EXEMPTIONS) V. THE INSTITUTE OF CHARTERED ACCO UNTANTS OF INDIA, 202 TAXMAN 138 (DEL) (COPY FILED) AND THE DECISION DATE D 16.6.2011 PASSED BY THE TRIBUNAL IN ITA NO. 1930(DEL)2011, FOR ASSESSME NT YEAR 2007-08, IN ASSTT.DIRECTOR OF INCOME TAX (E) V. THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA (COPY FILED). 5. THE DEPARTMENT HAS NOT BEEN ABLE TO REFUTE THE A FORESAID POSITION. THE HONBLE HIGH COURT (SUPRA) HAS HELD, INTER ALIA , THAT THIS DECISION IS DIRECTLY ON THE POINT SUPPORTING THE CASE OF THE RESPONDENT AFTER NOTICING NUMBER OF DECISIONS ON TH E POINT INCLUDING THE DECISIONS CITED BY THE LEARNED COUNSEL BEFORE U S. IT MAY BE STATED THAT THE QUESTION OF PROFIT MOTIVE OR NO-PROFIT MOT IVE WOULD BE RELEVANT ONLY WHERE A PERSON CARRIES ON TRADE, COMM ERCE, MANUFACTURE OR ADVENTURE IN THE NATURE OF TRADE, CO MMERCE ETC. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE PRESENT C ASE IRRESPECTIVE OF THE PROFIT MOTIVE, IT COULD NOT BE SAID THAT THE TR UST EITHER WAS DEALER OR WAS CARRYING ON TRADE, COMMERCE ETC. THE TRUST I S NOT CARRYING ON TRADE, COMMERCE, ETC., IN THE SENSE OF OCCUPATION T O BE A DEALER AS ITA NO. 1384(DEL)2011 7 ITS MAIN OBJECT IS TO SPREAD MESSAGE OF SAIBABA OF SHIRDI AS ALREADY NOTICED ABOVE. HAVING REGARD TO ALL ASPECTS OF T HE MATTER, THE HIGH COURT WAS RIGHT IN ANSWERING THE QUESTION REFERRED BY THE TRIBUNAL IN THE AFFIRMATIVE AND IN FAVOUR OF THE RESPONDENT-ASS ESSEE. WE MUST, HOWEVER, ADD HERE THAT WHETHER A PARTICULAR PERSON IS A DEALER AND WHETHER HE CARRIES ON BUSINESS, ARE THE MATTERS T O BE DECIDED ON FACTS AND IN THE CIRCUMSTANCES OF EACH CASE. THE PURPOSE AND OBJECT TO DO BUSINESS IS NORMALLY T O EARN AND IS CARRIED OUT WITH A PROFIT MOTIVE, IN SOME CASES THE ABSENCE OF PROFIT MOTIVE MAY NOT BE DETERMINATIVE. THE APPELLANT HA S GIVEN NO SUCH FINDING AS FAR AS THE ACTIVITIES OF THE INSTITUTE A RE CONCERNED. THE APPELLANT WITHOUT EXAMINING THE CONCEPT OF BUSINESS HAS HELD THAT THE INSTITUTE WAS CARRYING ON BUSINESS AS COACHING AND PROGRAMMES WERE HELD BY THEM AND A FEE IS BEING CHARGED FOR THE SAM E. ON THE BASIS OF THE FINDINGS RECORDED IN THE ORDER DATED 29 TH MARCH, 2010, UNDER SEC. 263 OF THE ACT, IT IS NOT SUFFICIENT TO HOLD THAT T HE INSTITUTE IS CARRYING ON BUSINESS. IN THESE CIRCUMSTANCES, WE DO NOT TH INK THAT THE ORDER PASSED BY THE APPELLANT UNDER SEC. 263 OF THE 1961 ACT CAN BE SUSTAINED AND WAS, THEREFORE, RIGHTLY UPSET AND SET ASIDE BY THE TRIBUNAL. 6. THOUGH THE AFORESAID DECISION WAS RENDERED BY TH E HONBLE HIGH COURT WHILE DEALING WITH A MATTER U/S 263 OF THE AC T, THE AFORESAID OBSERVATIONS ARE SQUARELY APPLICABLE TO SCRUTINY AS SESSMENT ALSO AND THIS POSITION ALSO REMAINS UNDISPUTED. 7. THE TRIBUNAL (SUPRA) FOLLOWED ITS OWN DECISION I N THE ASSESSEES CASE FOR ASSESSMENT YEAR 2005-06, IN ITA NO. 1853(DEL)20 10, WHEREIN, IT HAS BEEN OBSERVED AS FOLLOWS (AS REPRODUCED IN THE SAI D TRIBUNAL ORDER FOR ASSESSMENT YEAR 2007-08):- ITA NO. 1384(DEL)2011 8 15. THE INSTITUTE AS SUCH MERELY IT IS RECEIVIN G COACHING FEE FROM STUDENTS FOR IMPARTING EDUCATION, CANNOT BE SAID TO HAVE BEEN CARRYING ON BUSINESS AND ACCORDINGLY IT IS NOT REQU IRED TO MAINTAIN SEPARATE BOOKS OF ACCOUNT AS ALLEGED BY DIT(E). T HE INCOME OF THE COACHING CLASSES EARNED BY THE ASSESSEE INSTITUTE I S WITHIN ITS OBJECTS AND ITS REGULATIONS AND FURTHER THESE ACTIVITIES AR E EDUCATIONAL ACTIVITY WITHIN THE DEFINITION OF SECTION 2(15) OF THE INCOM E TAX ACT, 1961 AND CONSEQUENTLY THEREFORE CANNOT BE ACTIVITY OF BUSINE SS FOR WHICH SEPARATE BOOKS OF ACCOUNT ARE REQUIRED TO BE MAINTA INED. THE ORDER OF THE LD. DIT(E) IS, THEREFORE, NOT SUSTAINABLE AS THE INCOME OF THE INSTITUTE IS EXEMPT NOT ONLY U/S 10(23C)(IV) BUT AL SO UNDER SECTION 11. THE INSTITUTE IS AN EDUCATIONAL INSTITUTE AND HENCE ITS INCOME WILL ALSO BE EXEMPT UNDER SECTION 11 AS EDUCATION FALLS WITHI N THE MEANING OF CHARITABLE PURPOSE UNDER SECTION 2(15) OF THE ACT. 8. THE SAID TRIBUNAL ORDER FOR ASSESSMENT YEAR 2005 -06 WAS ALSO RELIED ON ON BEHALF OF THE ASSESSEE BEFORE THE LEARNED CIT (A) AND THE LD. CIT(A) HAS DULY TAKEN THE SAME INTO CONSIDERATION. 9. FURTHER, THE LD. CIT(A) HAS ALSO CORRECTLY FOLLO WED THE DECISION IN SAURASHTRA EDUCATION FOUNDATION V. CIT 273 ITR 13 9 (GUJ), WHEREIN, AS QUOTED BY THE CIT(A) AT PAGE 18 OF THE IMPUGNED ORD ER, IT HAS BEEN OBSERVED AS FOLLOWS:- AS REGARDS THE ILLUSTRATIONS OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA, ALTHOUGH THE INSTIT UTE WAS EARLIER NOT RUNNING FORMAL CLASSES AND THERE WAS NO GEOGRAPHICAL PROXIMITY WHEN INSTRUCTIONS WAS BEING IMPARTED THROUGH POSTAL TUITIONS, THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA HAS ALWAYS BEEN AN INSTITUTION SET UP, INT ER-ALIA, FOR IMPARTING FORMAL EDUCATION AND FOR TESTING PROFICIE NCY FOR ENTRY TO THE PROFESSION OF CHARTERED ACCOUNTANTS. THE INS TITUTE IMPARTS FORMAL EDUCATION IN ACCOUNTANCY AND CONNECT ED ITA NO. 1384(DEL)2011 9 SUBJECTS IN ORGANIZED AND SYSTEMATIC MANNER. THE IN STITUTE IS ACCOUNTABLE AS PER THE PROVISIONS OF THE ACT ESTABL ISHING SIT AND THE INSTITUTE ALSO HAS DISCIPLINARY CONTROL OVER TH E STUDENT WHO ARE REQUIRED TO BE REGISTERED WITH IT IN THE FIRST PLACE AND WHO APPEAR AT THE EXAMS BEING HELD BY THE INSTITUTE. HE NCE, THE EXAMPLE OF THE INSTITUTE OF CHARTERED ACCOUNTANTS O F INDIA IS NOT OPPOSITE AND THE ASSESSEE IS NOT AT ALL COMPARA BLE TO THE SAID INSTITUTE 10. THE LD. CIT(A) HAS ALSO TAKEN DUE NOTICE OF TH E FACT THAT IN SAURASHTRA EDUCATION FOUNDATION (SUPRA), THE HON BLE GUJARAT HIGH COURT REFERRED TO THE OBSERVATIONS OF THE HONBLE SUPREME COURT IN THE CASE OF SOLE TRUSTEE LOK SHIKSHANA TRUST, 101 ITR 234 (SC ), WHICH ARE AS FOLLOWS:- THE SUPREME COURT, IN THE ABOVE OBSERVATIONS, BY R EFERRING TOT EH SYSTEMATIC INSTRUCTION, SCHOOLING OR TRAININ G GIVEN TO THE YOUNG HAS ONLY CITED ON INSTANCE IN ORDER TO INDICA TE AS TO WHAT TO WORD EDUCATION APPEARING IN SECTION-2(15) OF T HE ACT WHICH DEFINES CHARITABLE PURPOSE IS INTENDED TO M EAN. WE ARE CERTAIN THAT THESE OBSERVATIONS WERE NOT INTEND ED TO KEEP OUT OF THE MEANING OF THE WORD EDUCATION, PERSONS OTHER THAN YOUNG. THE EXPRESSION SCHOOLING ALSO MEAN THAT SCHOOL INSTRUCTS OR EDUCATES. THE SUPREME COURT HAS OBSER VED THAT THE WORD EDUCATION ALSO CONNOTES THE WHOLE COURSE OF SCHOLASTIC INSTRUCTION WHICH A PERSON HAS RECEIVED. THIS CLEARLY INDICATES THAT THE OBSERVATIONS OF THE SUPREME COUR T WERE NOT INTENDED TO GIVE A NARROW OR PEDANTIC SENSE TO THE WORDEDUCATION. 11. IN VIEW OF THE ABOVE, FINDING NO ERROR WHATSOE VER IN THE ORDER OF THE LD. CIT(A), THE SAME IS HEREBY CONFIRMED, REJECTING THE GRIEVANCE SOUGHT TO ITA NO. 1384(DEL)2011 10 BE RAISED BY THE DEPARTMENT, FINDING THE SAME TO BE SHORN OF MERIT, IN VIEW OF THE AFORESAID DECISION. 12. IN THE RESULT, THE APPEAL FILED BY THE DEPARTME NT IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09.01.201 2. SD/- SD/- (K.G. BANSAL) (A.D. JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 09.01.2012 *RM COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR TRUE COPY BY ORDER ASSISTANT REGISTRAR