Sri Mariamman Educational Trust, Trichy V. CIT, Trichy

ITA 1508/CHNY/2009

• Counselvise Citation: 150821714 RSA 2009
• Duration Of Justice: 2 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 04-10-2011
• Assessment Year: misc
• Appeal Filed On: 29-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JR STAND ING
• Assessee Lawyers: V D GOPAL
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER ITA NO.1508(MDS)/2009 SRI MARIAMMAN EDUCATIONAL TRUST, 5-NORTH STREET, NEAR POLICE STATION, LALGUDI, TIRUCHIRAPALLI-621 601. PAN AAHTS1773K. VS. THE COMMISSIONER OF INCOME-TAX-I, TIRUCHIRAPALLI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V.D.GOPAL, ADVOCATE RESPONDENT BY : SHRI KEB RENGARAJAN, JR.STAND ING COUNSEL DATE OF HEARING : 4 TH OCTOBER, 2011 DATE OF PRONOUNCEMENT : 4 TH OCTOBER, 2011 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE ASSESSEE. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME-TAX-I AT TIRUCHIRAPALLI DATED 13-8-2009, REJECTING THE AP PLICATIONS FILED BY THE ASSESSEE FOR REGISTRATION UNDER SECTION 12AA AND APPROVAL UNDER SECTION 80G OF THE INCOME-TAX ACT, 1 961. - - ITA NO.1508 OF 2009 2 2. THE ASSESSEE IS A TRUST ESTABLISHED WITH THE MA IN OBJECT OF IMPARTING EDUCATIONAL SERVICES TO PUBLIC AT LARGE, ESPECIALLY TO POOR AND DESERVING STUDENTS. THE ASS ESSEE ALSO PREACHES ABOUT PROVIDING EMPLOYMENT-ORIENTED TECHNI CAL EDUCATION IN THE FIELD OF HOSPITALITY AND CATERING TECHNOLOGY, ETC. THE COMMISSIONER OF INCOME-TAX HELD THAT TRAINING I N HOTEL MANAGEMENT AND CATERING, FOOD AND BEVERAGE SERVICES CANNOT BE CONSIDERED AS TECHNICAL EDUCATION AND THEREFORE THE ASSESSEE IS NOT AUTHORISED PRIMA FACIE BY THE OBJEC T CLAUSE OF THE TRUST DEED. 3. IN ADDITION TO THE CORE OBJECTION RAISED BY THE COMMISSIONER OF INCOME-TAX, HE HAS ALSO MADE CERTAI N OBSERVATIONS REGARDING THE MEANING OF THE TERM EDU CATION IN PARAGRAPH 3 OF HIS ORDER, WHICH IS REPRODUCED BELOW :- FROM THE ABOVE, IT IS QUITE APPARENT THAT INDIA BE ING SECULAR COUNTRY, TERM EDUCATION ENVISAGES IMPARTI NG SECULAR KNOWLEDGE IN GENERAL SUBJECTS BY WAY OF NOR MAL SCHOOLING LIKE TEACHING MATHS, SCIENCE, HISTORY, AR TS, HUMANITIES AND PROFESSIONAL COURSES LIKE ENGINEERIN G, - - ITA NO.1508 OF 2009 3 MEDICAL MANAGEMENT, LEGAL EDUCATION, ARCHITECTURE, CHARTERED ACCOUNTS, ETC. THESE ALONE WOULD FALL WI THIN THE PURVIEW OF EDUCATION. IF THE TERM EDUCATION IS CONSIDERED IN A WIDE SENSE, THEN ENTITIES WHICH ARE RUN ON COMMERCIAL LINES AND IMPART TRAINING IN CATERING , HAIR DRESSING, BEAUTY PARLOUR TECHNIQUES, CAR DRIVING, A CTING SCHOOLS, MODELING SCHOOLS, TAILORING ALL WOULD FALL WITHIN THE PURVIEW OF THE TERM EDUCATION. I AM OF THE VIE W THAT ACTIVITY UNDERTAKEN BY THE APPELLANT TRUST IS A COM MERCIAL ACTIVITY AND WOULD NOT QUALIFY TO BE INCLUDED WITHI N THE DEFINITION OF THE TERM EDUCATION. THE APPLICANT TRUST HAS CLAIMED TRAINING IN FOOD PRODUCTION, FOOD AND BEVER AGE SERVICES AND HOTEL MANAGEMENT AND CATERING SERVICES AS EDUCATION BASED ON THE RECOGNITION BY THE DEPARTM ENT OF EMPLOYMENT AND TRAINING, CHENNAI. IT IS RELEVAN T TO MENTION HERE THAT THIS DEPARTMENT OF EMPLOYMENT AND TRAINING HAS APPROVED THE INSTITUTION TO CONDUCT INDUSTRIAL TRAINING FOR FOOD PRODUCTION AND FOOD AN D BEVERAGE SERVICES. IT IS RELEVANT TO MENTION HERE THAT THE INSTITUTION HAS BEEN CONSIDERED ONLY FOR PROVIDING - - ITA NO.1508 OF 2009 4 INDUSTRIAL TRAINING AND HAS NOT BEEN ENVISAGED TO EDUCATE EDUCATION IN TERMS OF NORMAL SCHOOLING. 4. REGARDING THE ABOVE INTERPRETATION OF THE TERM EDUCATION GIVEN BY THE COMMISSIONER, WE DO NOT LI KE TO COMMENT, EXCEPT TO STATE THAT THE VIEWS EXPRESSED A RE EXTREMELY PERSONAL VIEWS OF THE COMMISSIONER OF INCOME-TAX. 5. COMING TO THE POINT ADVANCED BY THE ASSESSEE, GIVING EMPLOYMENT ORIENTED TECHNICAL EDUCATION IN T HE FIELD OF HOTEL MANAGEMENT AND CATERING TECHNOLOGY IS DEFINIT ELY A PART OF EDUCATIONAL ACTIVITIES AND WHEN IT IS CARRIED OUT P ARTICULARLY FOR POOR AND DESERVING CANDIDATES, THE ACTIVITIES BECOM E ESSENTIALLY CHARITABLE IN NATURE. 6. WE HOLD THAT THE COMMISSIONER OF INCOME-TAX WEN T WRONG IN REJECTING THE APPLICATIONS FILED BY THE AS SESSEE TRUST. THE COMMISSIONER OF INCOME-TAX IS DIRECTED TO GRANT REGISTRATION UNDER SECTION 12AA AND ALSO APPROVAL UNDER SECTION 80G OF THE INCOME-TAX ACT, 1961. 7. THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. - - ITA NO.1508 OF 2009 5 ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON TUESDAY, THE 4 TH OF OCTOBER, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 4 TH OCTOBER, 2011. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) D.R. (5) G.F.