ADIT(OSD)(E), New Delhi V. Bird Education Society For Travel & Tourism, New Delhi

ITA 2131/DEL/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7612 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 16-03-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 04-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Competent authority
• Section: 12A; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : A NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOU NTANT MEMBER ITA NO: 2131/DEL/2012 AY : - 2008-09 ASSTT. DIRECTOR OF INCOME TAX VS. BIRD EDU CATION SOCIETY FOR (OSD)(E), TRUST WARD-III, TRAVEL & TOURISM, LAXMI NAGAR DISTT. CENTRE, E-9, CONNAUGHT PLACE, DELHI. NEW DELHI-110 019. (PAN AABCB6307M) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.K. JAISWAL, DR RESPONDENT BY : SHRI ADITYA ROY SINGH, ADVOCATE SHRI TARANDEEP SINGH, ADVOCATE DATE OF HEARING : 16.03.2016 DATE OF PRONOUNCEMENT : 16.05.2016 O R D E R PER SMT. DIVA SINGH, JUDICIAL MEMBER THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE A SSAILING THE CORRECTNESS OF THE ORDER DATED 28.2.2012 OF CIT (A) XII NEW DELHI PER TAINING TO 2008-09 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS :- 1. 'ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE AN D IN LAW, THE LD. CIT (A) HAS ERRED IN ALLOWING EXEMPTION U/S 11 & 12 OF THE ACT BECAUSE T HE ACTIVITIES CARRIED OUT BY THE ASSESSEE FELL OUTSIDE THE PURVIEW OF CHARITABLE PUR POSE AS PER SECTION 2(15) OF THE ACT. 2. ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE ACTIVITIES OF THE ASSESSEE INSTITUTION ARE GERMANE TO THE PRINCIPLES LAID DOWN BY THE HON'BLE APEX COURT WHILE INTERPRETING THE EXPRESSION 'EDUCATION' IN SEC. 2(1 5) OF THE ACT IN THE CASE OF LOKA SHIKSHAN TRUST [1975] 101 ITR 234 (SC). 2. THE RELEVANT FACTS OF THE CASE ARE THAT THE ASSESSEE WHO IS A SOCIETY ACCORDED REGISTRATION U/S 12A VIDE LETTER NO. DIT(EXEMPTION) /2001-02/B-858/131 DATED 29.5.2002 ITA NO. 2131/DEL/2012 PAGE 2 OF 16 RETURNED A NIL INCOME SUPPORTED BY AUDIT REPORT IN FORM NO. 10B, BALANCE SHEET, INCOME AND EXPENDITURE ACCOUNT WITH RELEVANT SCHEDU LES. 3. THE MAIN OBJECTS OF THE SOCIETY ARE AS UNDER :- '3.1. TO IMPART SPECIALIZED TRAINING IN THE FIELD T RAVEL & TOURISM TO EXISTING TRAVEL & TOURISM INDUSTRY PERSONNEL NATIONAL & INTERNATIONAL LEVELS. 3.2. TO IMPART BASIC AND ADVANCED LEVEL TRAINING IN THE FIELD OF TRAVEL & TOURISM TO YOUNG GRADUATE AND UNDERGRADUATE ASPIRANTS TO THE TRAVEL & TOURISM INDUSTRY AT THE NATIONAL & INTERNATIONAL LEVEL. 3.3. TO CREATE POTENTIAL NEW INTERPRETATION THE TRA VEL & TOURISM INDUSTRY AT THE NATIONAL & INTERNATIONAL LEVEL THROUGH EXTENSIVE TRAINING COVE RING SPECIALIZED SKILLS IN THE FIELD OF MARKETING, ADMINISTRATION AND DAY TO DAY OPERATIONA L MANAGEMENT. 3.4. TO INTRODUCE TRAINING AND UPDATE EXISTING TRA VEL & TOURISM INDUSTRY PROFESSIONALS, NEW ENTRANTS AND YOUNG GRADUATE AS WELL AS UNDERGRADUAT E ASPIRANTS ON COMPUTERIZED OPERATIONS OF THE GLOBAL TRAVEL I & TOURISM INDUSTR Y. 3.1. IN THE SCRUTINY PROCEEDINGS, THE AO REQUIRED TH E ASSESSEE TO JUSTIFY THAT THE ACTIVITIES WERE COVERED WITHIN THE MEANING OF EDUCA TION AS PER THE DEFINITION OF CHARITABLE PURPOSES CONTAINED IN SECTION 2(15) OF T HE INCOME TAX ACT 1961. THE TRIGGERING FACTOR FOR THIS QUERY WAS THE FACT ON RE CORD THAT THE ASSESSEE HAD PROVIDED COACHING / TRAINING FOR THE PERIOD UNDER CONSIDERAT ION FOR WHICH PURPOSES A SUM OF RS. 70,36,300/- HAD BEEN RECEIVED. THE COACHING/TRAINI NG WAS STATED TO BE PROVIDED FOR COURSES LIKE COMPUTER RESERVATION AND AUTOMATION, I ATA FOUNDATION, CERTIFICATE COURSE IN TRAVEL & TOURISM, 1 YEAR DIPLOMA IN AVIATION, IATA CARGO, IATA GDS FARES & TICKETING , TALLY, DGR ETC. ACCORDINGLY THE ASSESSEE WAS ALSO R EQUIRED TO REQUIRED TO ADDRESS WHETHER THE COURSES SO CONDUCTED WERE RECOGNISED. 3.2. THE FOLLOWING EXTRACTS FROM THE ASSESSMENT ORD ER CAPTURES THE ASSESSEES EXPLANATION: 7. SUBMISSIONS MADE BY THE ASSESSEE DURING THE COU RSE OF ASSESSMENT PROCEEDINGS HAVE BEEN DULY CONSIDERED. AFTER GOING THROUGH ALL THESE SUBMISSIONS, IT IS SEEN THAT CRUX OF ASSESSEE'S SUBMISSIONS ARE CONTAINED IN LETTER D T. 10.12.2010 AND RELEVANT PORTION OF SUCH SUBMISSIONS, PERTAINING TO THE ISSUE UNDER REF ERENCE (PARA-5 ABOVE), ARE EXTRACTED BELOW:- ITA NO. 2131/DEL/2012 PAGE 3 OF 16 'AS ALREADY EXPLAINED IN OUR EARLIER SUBMISSIONS TH E SOCIETY IS BROADLY CONDUCTING EIGHT COURSES / TRAINING PROGRAMMES. ALL THESE COUR SES EDUCATE THE DESIROUS STUDENTS ABOUT THE VARIOUS ASPECTS OF THE TRAVEL IN DUSTRY. THESE COURSES HAVE AN ELIGIBILITY CRITERIA, A DEFINITE CURRICULUM, MINIMU M NUMBER OF CLASSROOM HOURS, PRACTICAL HANDS ON TRAINING, EXAMINATION ON COMPLET ION OF COURSE AND THEN THE CERTIFICATION ..... SOME OF THE COURSES CONSIST OF MORE THAN ON MODULE E.G. 'TRAVEL AGENCY & TOUR OPERATION' COURSE CONSISTS OF TWO MODULES VIZ. 'LAT A / UFTAA FOUNDATION ' AND LATA / GDS FARES & TICKETING'. THESE COURSES ARE AF FILIATED TO LATA TRAINING & DEVELOPMENT INSTITUTE [ITDI] BASED IN CANADA. ITDI IMPARTS DIPLOMA AND CERTIFICATE COURSES IN TRAVEL/TOURISM / AVIATION / CARGO DISCIPLINES AS A PART OF DISTANCE LEARNING PROGRAMME THROUGH ITS AUTHORISED CENTRES. BIRD EDUCATION SOCIETY FOR TRAVEL & TOURISM {BESTT} IS ONE OF THE AUTHORIZED CENTRES. DISTANCE LEARNING PROGRAMME IS A CAREER ORIENTED TRAINING PR OGRAMME FOR THE AVIATION '1 LEARNING SECTOR PROVIDING STUDENTS WITH INDUSTRY WI DE KNOWLEDGE AND GLOBALLY RECOGNIZED QUALIFICATIONS. EVERY COURSE BEING OFFER ED BY BESTT IS HIGHLY STRUCTURED AND HAS REGULAR CLASSES AS PER NOTIFIED SCHEDULE. THE COURSES ARE CONDUCTED THROUGH A REGULARLY UPDAT ED CURRICULUM AND THERE IS A CENTRALIZED EXAMINATION SYSTEM. THESE COURSES PROVI DE STUDENTS WITH INDUSTRY WIDE KNOWLEDGE AND GLOBALLY RECOGNIZED QUALIFICATIO NS. THIS INITIATIVE OF ITDI THROUGH ITS AUTHORISED CENTRES IN INDIA HAS THE SUP PORT OF MINISTRY OF CIVIL AVIATION. COPY OF LETTER DATED 21 ST SEPTEMBER 2010 FROM MINISTRY OF CIVIL AVIATION IS ATTACHED HEREWITH ..... 'CERTIFICATE COURSE IN TRAVEL & TOURISM' IS A COURS E WHICH IS BEING CONDUCTED IN CONJUNCTION WITH MIRANDA HOUSE, UNIVERSITY OF DELHI AND HAS THE APPROVAL OF UNIVERSITY GRANT COMMISSION .... 'COMPUTERIZED RESERVATION SYSTEM' COURSE IS RECOGNI ZED BY THE NEW DELHI YOUNG MEN'S CHRISTIAN ASSOCIATION [YMCA] UNDER ITS HUMAN POTENTIAL DEVELOPMENT PROGRAMME. THESE COURSES ARE BEING OFFERED TO THE Y MCA SPONSORED STUDENTS AT A SUBSIDIZED FEE. 'TALLY' COURSE IS BEING OFFERED BY BESTT AS AN AUTH ORIZED TALLY ACADEMY ..... THE TALLY COURSE EDUCATES THE STUDENTS ABOUT THE COMPUT ERIZED ACCOUNTING WHICH IS WIDELY BEING USED IN THE TRAVEL AGENCY BUSINESS. FROM THE ABOVE EXPLANATION IT IS EVIDENT THAT THE C OURSES CONDUCTED BY THE SOCIETY REQUIRE A MINIMUM ELIGIBILITY CRITERIA FOR JOINING, FOLLOW A DEFINITE AND SCIENTIFIC METHOD OF IMPARTING KNOWLEDGE WHICH INCL UDE MANDATORY ATTENDANCE IN CLASSES THAT ARE BEING CONDUCTING BY TRAINED FACULT Y IN TIME BOUND SCHEDULE BEFORE TAKING UP EXAMINATION. THE COURSE MAY NOT BE PRESENTLY APPROVED BY A GOVER NMENT REGULATORY AUTHORITY IN THE FIELD OF EDUCATION AS THE SAME IS STILL TO F ORM A PART OF REGULAR COLLEGE CURRICULUM AS THE INFRASTRUCTURE REQUIRED TO CONDUC T THESE COURSES IS NOT THERE BUT AS THE DEMAND FOR PROFESSIONALS IN THE FIELD OF TRA VEL AND TOURISM GROWS THIS FIELD I WILL GET THE DUE RECOGNITION'. 3.3. SINCE THE COURSES ADMITTEDLY WERE NOT ACCREDIT ED BY UGC/SECONDARY BOARD, ETC. IN INDIA, THE AO CONCLUDED THAT THE COURSES CONDUCT ED DID NOT HAVE ANY RECOGNITION ITA NO. 2131/DEL/2012 PAGE 4 OF 16 FROM THE GOVT. HE WAS ALSO OF THE VIEW THAT THERE W ERE NO RESTRICTIONS ON THE NUMBER OF STUDENTS AND ON THE CHARGING OF FEES ALSO THERE WAS APPARENTLY DISCRETION; THE MONITORING IF ANY BY IATA, CANADA WAS ONLY FOR DOI NG BUSINESS BY EXECUTING AGREEMENTS WITH NUMBER OF PERSONS FOR OPENING, AUT HORISED TRAINING CENTRES UNDER ITS BRAND NAME. FURTHER CONSIDERING THE IATAS AGREEME NT MADE WITH THE ASSESSEE ON 14.8.2007, IT WAS CONCLUDED THAT IATA GAVE AUTHORI ZATION ON YEAR TO YEAR BASIS AND IT WAS BASICALLY A BUSINESS VENTURE FOR SPREADING IATA S AUTHORIZED TRAINING CENTRES. 3.4. IN THE CIRCUMSTANCES, IT WAS HOLD THAT EQUIPP ING THE PERSONS WITH THE RULES AND REGULATIONS FOR TICKETING, AIR TICKETING, AIR TRAVE L, CARGO ETC. COULD NOT BE CONSIDERED EDUCATING THEM. RELIANCE WAS PLACED UPON IN THE CA SE OF SOLE TRUSTEE LOK SHIKSHAN TRUST VS. CIT 101 ITR 234 (SC) AND SAURASHTRA EDUCATION FOUNDATION VS. CIT (2005) 273 ITR 139 (GUJ.). IT WAS CONCLUDED THAT THE ASSESSEE WAS ONLY CARRYING ON COACHING CLASSES FOR VARIOUS COURSES ON COMMERCIAL LINES WITH A PROFIT MOTIVE. AS A RESULT THEREOF, IT WAS HELD THAT THE ACTIVITIES CAR RIED ON BY THE ASSESSEE FELL OUTSIDE THE PURVIEW OF CHARITABLE PURPOSE AS PER ITS DEFINITI ON CONTAINED IN SECTION 2 (15) OF THE ACT. CONSEQUENTLY THE ASSESSEE WAS HELD TO BE NOT E NTITLED FOR EXEMPTION OF INCOME U/S 11 & 12 OF THE INCOME TAX ACT, 1961. ACCORDINGLY AS A RESULT OF DENIAL OF EXEMPTION U/S 11 & 12 THE CORPOS DONATIONS IN TERMS OF THE PROVIS IONS OF SECTION 2(24)(IIA) WERE HELD TO ATTRACT TAXABILITY LEADING TO THE ASSESSMENT BEI NG CONCLUDED AT AN INCOME OF RS.2,30,71,122/-. 4. AGGRIEVED, THE ASSESSEE TRAVELLED IN APPEAL BEFORE CIT(A) AND SUBMITTED THAT THE ASSESSEE IN THE YEAR UNDER CONSIDERATION CARRIED ON THE SAME ACTIVITIES AS CARRIED ON IN THE EARLIER YEARS NAMELY THE ACTIVITIES OF PROVIDIN G VOCATIONAL TRAINING IN THE FIELD OF TRAVEL AND TOURISM BY OFFERING SHORT TERM COURSES. SOME OF THESE SHORT TERM COURSES IT WAS SUBMITTED HAD BEEN APPROVED BY INTERNATIONAL AI R TRANSPORT ASSOCIATION (IATA) . ITA NO. 2131/DEL/2012 PAGE 5 OF 16 THESE ACTIVITIES HAD BEEN HELD TO BE CHARITABLE AND HENCE ELIGIBLE FOR EXEMPTION U/S 11 AND 12 IN THE EARLIER ASSESSMENT YEARS. IT WAS SUBM ITTED THAT THE VISION OF THE ASSESSEE WAS TO CREATE A POOL OF YOUNG TALENT FOR TRAVEL AND TOURISM INDUSTRIES BY PROVIDING TRAINING TO THE STUDENTS. ACCORDINGLY IN FURTHERAN CE OF ITS AIMS IT CONDUCTED CUSTOMIZED DIPLOMA PROGRAMMES OF ONE YEAR DURATION AND CERTIFI CATE PROGRAMMES OF SHORTER DURATION AIMED AT PROVIDING NOT ONLY TECHNO MANAGER IAL KNOWLEDGE AND SKILLS, DEVELOPMENT OF PERSONALITY BUT ALSO CROSS CULTURAL ORIENTATION. AS AN IATA AUTHORIZED TRAINING CENTRE IT WAS SUBMITTED IT NOT ONLY WAS APPROVED BY IATA BUT ALSO DIRECTOR GENERAL OF CIVIL AVIATION (DGCA) AND IT HAD BEEN IM PARTING TRAINING AT A VERY HIGHLY SUBSIDIZED FEE, TO YOUNG MEN AND WOMEN IN THE FIELD OF TRAVEL AND TOURISM IN ASSOCIATION WITH THE FOLLOWING:- 1. DELHI TOURISM AND TRANSPORT DEVELOPMENT CORPORAT IONS INSTITUTE OF TOURISM & TRAVEL MANAGEMENT (DELHI CHAPTER), CHANKYAPURI, NEW DELHI 2. MIRANDA HOUSE, UNIVERSITY OF DELHI 3. DELHI UNIVERSITY, CAMPUS OF OPEN LEARNING, KESHAVPU RAM CENTRE, NEW DELHI 4. YMCA, JAI SINGH ROAD, NEW DELHI 4.1. IT WAS SUBMITTED THAT THE CONCLUSIONS HAVE BEEN DRAWN BY THE AO IGNORING THESE FACTS AND DETAILS EXPLAINED BEFORE HIM AND HE HAS W RONGLY RELIED UPON THE DECISIONS CITED. THOSE DECISIONS ON FACTS, IT WAS SUBMITTED WERE DISTINGUISHABLE AND INSTEAD THE ISSUE WAS SUPPORTED BY OXFORD ACADEMY FOR CAREERS DEVELOPMENT VS. CHIEF CI T REPORTED IN 315 ITR 382(ALL). IT WAS FURTHER SUBMITTED THAT THE AO HAS INCORRECTLY INTERPRETED THE PROVISION OF SECTION 2(15) OF THE ACT AND THE AMENDMENT CARRIED OUT BY THE FINANCE ACT 2008 W.E.F 1.4.2009 AND THE RELEVA NT LEGISLATIVE INTENTIONS WHICH INFACT HAD BEEN EXPLAINED BY THE CBDT INSTRUCTION NO. 1 DATED 27 TH MARCH, 2009 REPORTED IN 310 ITR 42(ST) RELEVANT AT PAGE 52 TO 5 3. RELIANCE WAS PLACED UPON THE CASE OF DELHI MUSIC SOCIETY REPORTED IN 204 TAXMAN 231 (DE L). ITA NO. 2131/DEL/2012 PAGE 6 OF 16 5. THE ASSESSEE SUCCEEDED IN ITS APPEAL BEFORE THE CIT(A) LEADING TOT HE FILING OF THE PRESENT APPEAL BY THE REVENUE. 6. RELYING UPON THE ASSESSMENT ORDER, LD.SR.DR SUBM ITTED THAT THE IMPUGNED ORDER MAY BE SET ASIDE. LD. AR ON THE OTHER HAND RELIED UPON THE IMPUGNED ORDER. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERU SED THE MATERIAL AVAILABLE ON RECORD. ON A CONSIDERATION THEREOF, WE FIND FOR REASONS TO BE BROUGHT OUT IN DETAIL HEREINAFTER THAT IN THE PECULIAR FACTS AND CIRCUMSTANCES OF THE CASE, NOTHING HAS BEEN PLACED BEFORE US TO UPSET THE DETAILED FINDING OF FACT ARRIVED AT BY THE CIT(A). WE FIND THAT THE CLAIM OF THE ASSESSEE MADE BEFORE THE CIT(A) THAT THE ARG UMENTS ADVANCED BEFORE THE AO ARE BEING RE-ITERATED HAS NOT BEEN UPSET. WE FIND THA T IN THE FACTS OF THE PRESENT APPEAL, THE DISTINCTION ON FACTS DRAWN FROM THE DECISION R ELIED UPON BY THE AO WERE CONFRONTED TO THE AO IN THE REMAND PROCEEDINGS BY THE CIT(A) A ND WE HAVE SEEN THAT THE AO HAS FILED A REMAND REPORT WHICH HAS BEEN EXTRACTED IN P ARA 8 OF THE IMPUGNED ORDER. A PERUSAL OF THE SAME SHOWS THAT APART FROM RELYING U PON THE DECISIONS CITED IN THE ASSESSMENT ORDER RELIANCE WAS FURTHER PLACED UPON T HE DECISION OF THE SUPREME COURT IN THE CASE OF DISTRIBUTORS BARODA (P) LTD. VS. UNION OF INDIA & OTHERS (1985) 155 ITR 120 (SC). THE REFERENCE THERETO IS RELEVANT IN VIEW OF THE F ACTS THAT THE ASSESSEE BEFORE THE CIT(A) RELYING UPON THE ASSESSM ENT ORDER ITSELF HAS SUBMITTED THAT THE REGISTRATION GRANTED TO THE ASSESSEE TILL DATE HAS NOT BEEN WITHDRAWN. THE ASSESSEE IT IS SEEN IS A SOCIETY REGISTERED UNDER THE SOCIET IES REGISTRATION ACT XXI OF 1860 VIDE REGISTRATION NO. S-33130 OF 1998 DATED 15 TH JUNE 1998. IT IS ALSO A FACT THAT THE ASSESSEE WAS GRANTED REGISTRATION U/S 12A OF THE AC T VIDE ORDER NO. DIT(E)/2001-02/B- 858/131 DATED 29 TH MAY, 2002 EFFECTIVE FROM 1 ST APRIL, 2002. THE LD.CIT(A) TAKES NOTE OF THE FACT THAT THE 12A EXEMPTION HAS NOT BEEN WITHDR AWN BY THE DIT(E) TILL DATE A FACT NOT UPSET BY THE REVENUE BEFORE US. THIS FACT IS A LSO ACKNOWLEDGED BY THE AO IN HIS ITA NO. 2131/DEL/2012 PAGE 7 OF 16 ORDER AT PAGE 1 PARA 2. IT IS NOT THE CASE OF THE RE VENUE THAT THE ACTIVITIES OF THE SOCIETY ARE FOUND TO BE CONTRARY TO THE MAIN OBJECTS OF THE SOCIETY AND IN FACT WE FIND ARE AS PER ITS MEMORANDUM EXTRACTED IN THE ASSESSMENT ORDER (W HICH HAS BEEN REPRODUCED IN THE EARLIER PART OF THIS ORDER). THE ASSESSEE HAS CONSI STENTLY PUT UP A CLAIM THAT IT IS A CHARITABLE SOCIETY TRUST AND RELYING UPON THE JU DICIAL PRECEDENT AS CONSIDERED BY THE AFORESAID DECISIONS OF THE HONBLE ALLAHABAD HIGH C OURT NAMELY OXFORD ACADEMY FOR CAREERS DEVELOPMENT AND THE DECISION OF THE DELHI HIGH COURT IN THE CASE OF DELHI MUSIC SOCIETY HAS SUBMITTED THAT THERE IS A PRE-DEFINED TRAINING PROGRAM WHICH IS STRICTLY ADHERED TO. THE REQUISITE INFORMATION AND DETAILS HAVE SPECIFICALLY BEEN CALLED FOR BY THE FIRST APPELLATE AUTHORITY AND HAVE BEEN FILED AN ELABORATE MENTION TO THESE FACTS AT PAGE 14 IN THE DETAILED FINDING ON FACT AR RIVED AT IN PAGE 12 TO 21 OF THE IMPUGNED ORDER HAS BEEN TAKEN INTO CONSIDERATION. ON CONSIDERATION, WE FURTHER FIND THAT THE DECISIONS RELIED UPON BY THE AO INFACT SU PPORT THE CASE OF THE ASSESSEE. ACCORDINGLY ON FACTS AND LAW, WE DO NOT FIND MUCH M ERIT IN THE DEPARTMENTS APPEAL. THE CONCLUSION HAS BEEN DRAWN ON THE FOLLOWING REAS ONING ON FACTS, CIRCUMSTANCES AND JUDICIAL PRECEDENT AS FOUND DISCUSSED HEREINAFTER. 8. A PERUSAL OF THE RECORD SHOWS THAT THE AO HAS MI S-DIRECTED HIMSELF BY ENVISAGING A VERY NARROW SCOPE OF THE TERM EDUCATION AS APPE ARING IN SECTION 2(15) OF THE INCOME TAX ACT. THE FACTS QUA THE ISSUE WHICH HAVE ALREADY BEEN ADDRESSED ARE NOT BEING REPEATED AND ON THE NATURE OF ACTIVITIES COND UCTED BY THE ASSESSEE THERE IS NO DISPUTE THE DISPUTE IS SOLELY ON THE GROUND THAT TH E EDUCATION IS NOT RECOGNISED BY UGC/BOARD ETC. UNDER THE AEGIS OF THE GOVERNMENT. WE FIND THAT THE NARROW MEANING WITH WHICH THE EDUCATION COULD BE CONSIDERED HAS RESULTED ON ACCOUNT OF MISTAKENLY RELYING UPON THE FOLLOWING OBSERVATIONS OF THE HON BLE APEX COURT IN THE CASE OF SOLE SHIKSHAN TRUST VS. CIT (CITED SUPRA):- ITA NO. 2131/DEL/2012 PAGE 8 OF 16 THE SENSE IN WHICH THE WORD EDUCATION HAS BEEN U SED IN SECTION 2(15) IS THE SYSTEMATIC INSTRUCTION, SCHOOLING OR TRAINING GIVEN TO THE YOUNG IN PREPARATION FOR THE WORK OF LIFE. IT ALSO CONNOTES THE WHOLE COURSE OF SCHOLASTIC INSTRUCTION WHICH A PERSON HAS RECEIVED. THE WORD EDUCATION HAS NOT BEEN US ED IN THAT WIDE AND EXTENDED SENSE, ACCORDING TO WHICH EVERY ACQUISITION OF FURTHER KNO WLEDGE CONSTITUTES EDUCATION. ACCORDING TO THIS WIDE AND EXTENDED SENSE, TRAVELLI NG IS EDUCATION, BECAUSE AS A RESULT OF TRAVELLING YOU ACQUIRE FRESH KNOWLEDGE. LIKEWISE, IF YOU READ NEWSPAPERS AND MAGAZINES, SEE PICTURES, VISIT ART GALLERIES, MUSEU MS AND ZOOS, YOU THEREBY ADD TO YOUR KNOWLEDGE. AGAIN, WHEN YOU GROW UP AND HAVING DEAL INGS WITH OTHER PEOPLE, SOME OF WHOM ARE NOT STRAIGHT, YOU LEARN BY EXPERIENCE AND THUS ADD TO YOUR KNOWLEDGE OF THE WAYS OF THE WORLD. IF YOU ARE NOT CAREFUL, YOUR WA LLET IS LIABLE TO BE STOLEN OR YOU ARE LIABLE TO BE CHEATED BY SOME UNSCRUPULOUS PERSON. THE THIEF WHO REMOVES YOUR WALLET AND THE SWINDLER WHO CHEATS YOU TEACH YOU A LESSON AND IN THE PROCESS MAKE YOU WISER THOUGH POORER. IF YOU VISIT A NIGHT CLUB, YOU GET ACQUAINTED WITH AND ADD TO YOUR KNOWLEDGE ABOUT SOME OF THE NOT MUCH REVEALED REALI TIES AND MYSTERIES OF LIFE. ALL THIS IN A WAY IS EDUCATION IN THE GREAT SCHOOL OF LIFE. BU T THAT IS NOT THE SENSE IN WHICH THE WORD EDUCATION IS USED IN CL.(15) OF SECTION 2. WHAT EDUCATION CONNOTES IN THAT CLAUSE IS THE PROCESS OF TRAINING AND DEVELOPING THE KNOWLEDGE, S KILL, MIND AND CHARACTER OF STUDENTS BY NORMAL SCHOOLING. 9. THE IMPORT AND THE CONTEXT OF THE ABOVE OBSERVAT IONS OF THE HONBLE APEX COURT CAME TO BE CONSIDERED BY THE HONBLE GUJARAT HIGH COURT IN THE CASE OF GUJARAT STATE CO-OPERATIVE UNION VS. CIT REPORTED IN 195 ITR 279 (GUJ.) AND WE SHALL BE REFERRING TO THESE OBSERVATIONS IN GREATER DETAIL S UBSEQUENTLY FOR THE PRESENT, WE NEED TO REFER TO SOME MATERIAL FACTS WITH WHICH THE HON BLE GUJARAT HIGH COURT WAS SEIZED OF. IN THE FACTS OF THE CASE THE ACTIVITIES CONDUCTED BY THE GUJARAT STATE CO-OPERATIVE UNION CONSISTED OF HIGHER DIPLOMA IN CO-OPERATION (CONDENSED), DIPLOMA IN LAND DEVELOPMENT BANKING; CERTIFICATE COURSE IN CO-OPERATIVE CREDIT AND BANKING CERTIFICATE COURSE IN CO- OPERATIVE CREDIT AND BANKING ETC. CONSISTING OF 18 WEEKS, 12 WEEKS, 10 WEEKS AND 24 WEEKS DURATION RESPECTIVELY. THE ACTIVITIES OF CO NDUCTING OF SEMINARS AND RUNNING FOUR COOPERATIVE TRAINING CENTRES; CONDUCTING SPECIAL CO URSES FOR EMPLOYEE OF URBAN CO- OPERATIVE BANKS, DISTRICT CO-OPERATIVE BANKS AND MA RKET CLASS, AND ALSO SEMINARS. THE ASSESSEE THEREIN ALSO CONDUCTED CO-OPERATIVE EDUCATION PROGRAM, CONSUMER EDUCATION PROGRAMME, WOMEN CO-OPERATIVE EDUCATION PROGRAMME ETC. AMONGST ITS LIST OF ACTIVITIES IN THE CONTEXT OF THESE AFORESAID ACTIVITIES. ITA NO. 2131/DEL/2012 PAGE 9 OF 16 10. CONSIDERING SECTION 2(15) AND THE CASE OF THE R EVENUE, THE HONBLE GUJARAT HIGH COURT CONSIDERING THE JUDGMENT OF THE APEX COURT OF SOLE TRUSTEE, LOKA SIKSHANA TRUST HAS ELUCIDATED AND ELABORATED THE SAID DECISION IN THE FOLLOWING MANNER : 'THE SUPREME COURT, IN THE ABOVE OBSERVATIONS, BY R EFERRING TO THE SYSTEMATIC \ INSTRUCTION, SCHOOLING OR TRAINING GIVEN TO THE YOU NG HAS ONLY CITED AN INSTANCE IN ORDER TO INDICATE AS TO WHAT THE WORD 'EDUCATION' APPEARING IN S. 2(15) OF THE ACT \ WHICH DEFINES 'CHARITABLE PURPOSES' IS INTENDED TO MEAN. WE ARE C ERTAIN THAT THESE OBSERVATIONS WERE NOT INTENDED TO KEEP OUT OF THE MEANING OF THE WORD 'EDUCATION', PERSONS OTHER THAN 'YOUNG'. THE EXPRESSION 'SCHOOLING' ALSO MEANS 'THA T SCHOOLS, INSTRUCTS OR EDUCATES' (THE OXFORD ENGLISH DICTIONARY, VO!. IX, P. 217). T HE SUPREME COURT HAS OBSERVED THAT THE WORD 'EDUCATION' ALSO CONNOTES THE WHOLE COURSE OF SCHOLASTIC INSTRUCTION WHICH A PERSON HAS RECEIVED. THIS CLEARLY INDICATES THAT TH E OBSERVATIONS OF THE SUPREME COURT WERE NOT INTENDED TO GIVE A NARROW OR PEDANTIC SENS E TO THE WORD 'EDUCATION '. BY GIVING FURTHER ILLUSTRATIONS OF A TRAVELLER GAINING KNOWLE DGE, VICTIMS O-F SWINDLERS AND THIEVES BECOMING WISER, THE VISITORS TO NIGHT CLUBS ADDING TO THEIR KNOWLEDGE THE HIDDEN MYSTERIES OF LIFE, THE SUPREME COURT HAS INDICATED THAT THE WORD 'EDUCATION' IS NOT USED IN A LOOSE SENSE SO AS TO INCLUDE ACQUISITION OF EV EN SUCH KNOWLEDGE. THE OBSERVATIONS OF THE SUPREME COURT ONLY INDICATE THE PROPER CONFINES OF THE WORD 'EDUCATION' IN THE CONTEXT OF THE PROVISIONS OF SECTION 2(15) OF THE A CT. IT WILL NOT BE PROPER TO CONSTRUE THESE OBSERVATIONS IN A MANNER IN WHICH THEY ARE CO NSTRUED BY THE TRIBUNAL WHEN IT INFERS FROM THESE OBSERVATIONS, IN PARA 17 OF ITS J UDGMENT, THAT THE WORD 'EDUCATION' IS LIMITED TO SCHOOLS, COLLEGES AND SIMILAR INSTITUTIO NS AND DOES NOT EXTEND TO ANY OTHER MEDIA FOR SUCH ACQUISITION OF KNOWLEDGE. THE OBSERV ATIONS OF THE SUPREME COURT DO NOT CONFINE THE 1V0RD 'EDUCATION' ONLY TO SCHOLASTIC IN STRUCTIONS BUT OTHER FORMS OF EDUCATION ALSO ARE INCLUDED IN THE WORD 'EDUCATION'. AS NOTIC ED ABOVE, THE WORD 'SCHOOLING' ALSO MEANS INSTRUCTING OR EDUCATING. IT, THEREFORE, CANN OT BE SAID THAT THE WORD 'EDUCATION' HAS BEEN GIVEN AN UNDULY RESTRICTED MEANING BY THE SUPREME COURT IN THE SAID DECISION.' 11. REVERTING TO THE FACTS OF THE PRESENT CASE, THE AO IS FOUND TO HAVE REFERRED TO THE ACTIVITIES IN THE ASSESSMENT ORDER. HOWEVER, HE HA S NOT CARED TO FACTUALLY EXAMINE THE SAME. SATISFIED BY ENUMERATING THE ACTIVITIES, HE HAS FAILED TO EXAMINE THE SUPPORTING FACTS AND REQUIREMENTS QUA THE SPECIFIC COURSES; DU RATION OF THE COURSE; THE COURSE FEE AND THE ASSESSEES EXPLANATION AND INSTEAD OF EXAMI NING AND CONSIDERING THE SAME WHICH EVIDENTLY WAS FILED AND MADE AVAILABLE HE HAS INSTEAD JUMPED TO THE CONCLUSION BASED ON DECISIONS WHOSE FACTS ALSO HE FAILED TO C ONSIDER. THE SPECIFIC COURSES CONDUCTED BY THE ASSESSEE ADMITTEDLY PERTAINING TO TRAVEL AND TOURISM INDUSTRY WERE HAVING THE APPROVAL OF DIRECTOR GENERAL, CIVIL AVIA TION DEPARTMENT OF THE GOVERNMENT OF ITA NO. 2131/DEL/2012 PAGE 10 OF 16 INDIA AND MEETING SPECIFIC REQUIREMENTS AND FOLLOWIN G A COURSE PROGRAM AS APPROVED AND RECOGNIZED BY THE FOLLOWING:- DANGEROUS GOODS REGULATIONS - COURSE APPROVED BY DG CA DIPLOMA IN AVIATION & TRAVEL INDUSTRY WITH LATA CER TIFICATION CERTIFICATE COURSE IN TRAVEL AND TOURISM CERTIFICATE COURSE IN TRAVEL & TOURISM IN COLLABORA TION WITH MIRANDA HOUSE COMPUTERIZED RESERVATION SYSTEMS IN COLLABORATION W ITH YMCA LATA/UFTAA FOUNDATION LATA/GDS FARES TICKETING TALLY FINANCIAL ACCOUNTING PROGRAMME SOFT SKILLS 12. A PERUSAL OF THE FINDING ARRIVED AT BY THE CIT (A) MAKES IT CLEAR THAT THE DETAILS OF THE VARIOUS COURSES CONDUCTED BY THE ASSESSEE ALONG WITH RULES AND REGULATIONS ADHERED TO BY IT DEPICTING ITS OPERATING PROCEDURES WERE AL L CONSIDERED AND EXAMINED IN EXTENSO AND NEITHER THESE FINDINGS HAVE BEEN UPSET IN THE P RESENT PROCEEDINGS NOR ANYTHING UPSETTING THESE HAS BEEN REFERRED TO BY THE REVENUE IN THE REMAND REPORT FILED BY THE AO BEFORE THE CIT(A). ACCORDINGLY ON PERUSAL OF TH E SAME AND ON CONSIDERING THE SUBMISSIONS OF THE SR. DR WE FIND THAT THE FOLLOWIN G CONCLUSIONS DRAWN ON FACTS HAVE NOT BEEN REBUTTED BY THE REVENUE:- ....................... DURING THE COURSE OF APP ELLATE PROCEEDINGS THE APPELLANT WAS DIRECTED TO FILE DETAILS OF THE VARIOUS COURSES CONDUCTED B Y IT ALONG WITH RULES AND REGULATIONS ARTICULATED BY IT DEPICTING ITS OPERATING PROCEDURE S, THESE DETAILS WERE FURNISHED BY THE APPELLANT AND I HAVE EXAMINED THE SAME. IT WAS OBSE RVED THAT FOR EACH AND EVERY COURSE CONDUCTED BY THE APPELLANT THERE IS A PRE-DEFINED T RAINING PROGRAM WHICH IS STRICTLY ADHERED TO, THE TRAINING PROGRAM CLEARLY SETS THE R ULES AND REGULATIONS AS REGARDS ELIGIBILITY CRITERIA FOR COURSE, REGISTRATION AND F EE PROCEDURE, COURSE SCHEDULE, MAINTENANCE OF ATTENDANCE RECORD, EXAMINATION ENROL MENT PROCEDURE, EXAMINATION/RE- EXAMINATION PROCEDURE, PROCESSING OF RESULTS AND AW ARD OF CERTIFICATES, ETC. FURTHER THE APPLICANT HAS ALSO DEPLOYED AN ADEQUATE POOL OF IN- HOUSE AND VISITING PROFESSIONAL FACULTY WHICH IMPARTS EDUCATION TO THE STUDENTS WHO HAVE EN ROLLED FOR COURSES. AS AN EXAMPLE IT WOULD BE RELEVANT HERE TO HIGHLIGHT COURSE PROGRAMM E AND SCHEDULES OF FEW OF COURSES BEING CARRIED ON BY THE APPELLANT. AS REGARDS DANGE ROUS GOODS REGULATIONS COURSE THE COURSE CONTENT/SET IS PREPARED BY DIRECTOR GENERAL OF CIVIL AVIATION (DGCA), EDUCATION AND TRAINING I PROVIDED BY THE APPELLANT, EXAMINATI ON PAPER IS APPROVED BY DGCA, EXAMINATION IS CONDUCTED BY APPELLANT. AND THE DIPL OMA CERTIFICATE APPROVED BY DGCA IS AWARDED BY APPELLANT TO THE SUCCESSFUL CANDIDATES/S TUDENTS. AS REGARDS CERTIFICATE COURSE IN TRAVEL & TOURISM IN COLLABORATION WITH MI RANDA HOUSE THE COURSE CONTENT IS SET MIRANDA HOUSE, EDUCATION AND TRAINING IS PROVIDED B Y THE APPELLANT, EXAMINATION PAPER IS SET BY APPELLANT, EXAMINATION IS CONDUCTED BY APPEL LANT AND THE DIPLOMA CERTIFICATE ITA NO. 2131/DEL/2012 PAGE 11 OF 16 APPROVED BY MIRANDA HOUSE (COLLEGE AFFILIATED TO DE LHI UNIVERSITY) IS AWARDED BY BOTH MIRANDA HOUSE AND THE APPELLANT TO THE SUCCESSFUL C ANDIDATES/STUDENT .THE EXAMINATION PROCEDURE BEING FOLLOWED BY THE APPELLANT IS IN FAC T MORE COMPARABLE TO A NORMAL SCHOOLING ACTIVITY. OUT OF VARIOUS CANDIDATES/STUDE NTS REGISTERED WITH THE APPELLANT FOR VARIOUS COURSES CONDUCTED BY IT, IT IS SEEN THERE A RE SOME STUDENTS WHO HAVE BEEN UNSUCCESSFUL IN THE EXAMINATIONS. THESE STUDENTS TH EN RE-APPEARED FOR RE-EXAMINATION WITH THE APPELLANT IN THE NEXT TERM OF THE RELEVANT COURSE. A PROPER ATTENDANCE RECORD IS BEING, MAINTAINED BY THE APPELLANT FOR ALL THE STUD ENTS AS WELL AS THE TEACHERS AND VISITING FACILIT : THE APPELLANT HAS ALSO SET OPERA TING STANDARDS FOR THE VARIOUS COURSES CONDUCTED BY IT. THESE OPERATING STANDARDS CLEARLY EAR MARK FOR EACH COURSE THE PERIODICITY, EXAMINATION SCHEDULE, DURATION, ELIGIB ILITY CRITERIA, REGISTRATION CRITERIA, FEE SCHEDULE, RULES VIS A VIS ATTENDANCE PROCEDURE, ETC . THESE FACTS CLEARLY DISTINGUISH ACTIVITIES OF THE APPELLANT WHICH ARE MORE ANALOGOU S TO SCHOOLING FROM THE ACTIVITIES OF A NORMAL COACHING INSTITUTE............... 13. THE CONCLUSION SO DRAWN IS FURTHER SUPPORTED BY THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF DELHI MUSIC SOCIETY REPORTED IN 204 TAXMAN 231(DELHI) WHERE THEIR LORDSHIPS HOLD AS UNDER CONSIDERING TH E FACTS OF THAT CASE: '11. EVEN IF THESE TESTS ARE APPLIED TO THE CASE OF THE PETITIONER, THE PETITIONER FULFILS THEM. AS HAS ALREADY BEEN NOTICED, THE PETITIONER I S TEACHING AND PROMOTING ALL FORM OF MUSIC AND DANCE, WESTERN, INDIAN OR ANY OTHER. IN A CCORDANCE WITH THE OBJECT, IT IS RUNNING A MUSIC SCHOOL IN DELHI, COLLECTING TUITION FEE AND ADMISSION FEE FROM THE STUDENTS. TEACHERS HAVE BEEN EMPLOYED AND THEY HAVE BEEN PAID SALARIES. EXPENDITURE IS ALSO INCURRED ON THE MAINTENANCE OF MUSICAL INSTRUM ENTS. ALL THESE ARE REFLECTED IN THE INCOME AND EXPENDITURE ACCOUNT FOR THE YEARS ENDED 31ST MARCH, 2006 TO 31STMARCH, 2010. THE PETITIONER HAS ALSO FILED AUDITED ACCOUNT FOR THESE YEARS. IN ANNEXURE P-5 TO THE WRIT PETITION, THE PETITIONER HAS ANNEXED A WRI TE UP OF ITS ACTIVITIES. FROM THIS, IT IS SEEN THAT THERE ARE 549 STUDENTS ENROLLED WITH THE PETITIONER WHO ARE TAUGHT WESTERN INSTRUMENTS ACCORDING TO THEIR CHOICE SUCH AS PIANO , GUITAR, ELECTRONIC KEY BOARD, WIND INSTRUMENTS, DRUMS AND VOCAL. THE SCHOOL FACULTY CO MPRISES OF 30 TEACHERS WITH 25 OF THEM BEING GRADE 8 AND ABOVE IN WESTERN MUSIC. THER E IS REFERENCE TO SCHOLARSHIPS THAT ARE OPEN TO THE STUDENTS INCLUDING WAIVER OF FEES F ROM 25% TO 90%. IT HAS BEEN STATED THAT SEVERAL STUDENTS OF THE SCHOOL HAVE GONE ON FO R HIGHER MUSICAL STUDIES TO PLACES LIKE MOSCOW, LONDON, NEW YORK, PRAGUE AND ROME. THE SCHE DULE OF FEES EFFECTIVE FROM APRIL, 2011 I ALSO MADE PART OF THE ANNEXURE. THERE ARE RU LES AND REGULATIONS GOVERNING THE RUNNING OF THE SCHOOL WHICH ARE ALSO MADE PART OF T HE ANNEXURE. THE MAIN RULES AND REGULATIONS ARE THAT THE SCHOOL WORKS FOR ALL SEVEN DAYS A WEEK AND REMAINS CLOSED ONLY ON NATIONAL AND PUBLIC HOLIDAYS; THAT THE SCHOOL YE AR IS DIVIDED INTO FOUR TERMS OF THREE MONTHS EACH; THAT STUDENTS WHO ARE ATTENDING INSTRU MENTAL MUSIC CLASSES WOULD BE TAUGHT INDIVIDUALLY BY THE TEACHERS; THAT DANCE STU DENTS WOULD BE TAUGHT IN GROUPS: THAT THERE WOULD BE WORKSHOPS/LECTURE DEMONSTRATIONS ARR ANGED FOR THE BENEFIT OF THE STUDENTS FROM TIME TO TIME AND THAT ATTENDANCE IN S UCH WORKSHOPS WOULD BE COMPULSORY, THAT STUDENTS WHO REPORT LATE BY MORE THAN 20 MINUT ES MAY BE MARKED ABSENT AND SO ON. THERE IS ALSO A RULE THAT THE STUDENTS; WHO ARE IRREGULAR IN ATTENDING THE CLASSES OR ABSENT THEM ELVES FREQUENTLY FOR LONG PERIODS WITHO UT PRIOR INTIMATION, WOULD BE REMOVED FROM THE ROLLS AND IF ANY OF THE STUDENTS ARE FOUND LACKING IN APPLICATION OR DISCIPLINE, THEY ARE LIABLE TO BE TERMINATED BY THE PRINCIPAL. ITA NO. 2131/DEL/2012 PAGE 12 OF 16 12. IT IS SEEN FROM THE ABOVE THAT THE PETITIONER I S BEING RUN LIKE ANY SCHOOL OR EDUCATIONAL INSTITUTION IN A SYSTEMIC MANNER WITH R EGULAR CLASSES, VACATIONS, ATTENDANCE REQUIREMENTS, ENFORCEMENT OF DISCIPLINE AND SO ON. THESE PROVISIONS IN THE RULES AND REGULATIONS SATISFY THE CONDITION LAID DOWN IN THE JUDGMENT OF THE HON'BLE SUPREME COURT, SOLE TRUSTEE, LOKA SIKSHANA TRUST, CITED (SUPRA) TH AT THERE SHOULD BE A PROCESS OF TRAINING AND DEVELOPING THE KNOWLEDGE, SKILL, MIND AND CHARACTER OF THE STUDENTS BY 'NORMAL SCHOOLING'. IT CANNOT BE DOUBTED THAT, HAVI NG REGARD TO THE MANNER IN WHICH THE PETITIONER RUNS THE MUSIC SCHOOL, THAT THERE IS IMP ARTING OF SYSTEMATIC INSTRUCTION, SCHOOLING OR TRAINING GIVEN TO THE STUDENTS SO THAT THEY ATTAIN PROFICIENCY IN THE FIELD OF THEIR CHOICE - VOCAL OR INSTRUMENTAL IN WESTERN CLA SSICAL MUSIC. .................. 16. ANOTHER ASPECT TO BE NOTICED IS THAT NORMALLY C OACHING CENTRES ARE RUN FOR SHORTER PERIODS AND THEY HAVE NO STRICT RULES AND REGULATIO NS AS AN EDUCATIONAL INSTITUTION. THERE IS NO SUCH THING AS AN ACADEMIC YEAR. STRICT DISCIP LINE AND REQUIREMENTS OF ATTENDANCE ARE NOT ENFORCED. FURTHER THEY ARE RUN ON COMMERCIA L LINES AND WITH A PROFIT MOTIVE. 14. WE FURTHER FIND THAT THE OBJECTIONS OF THE AO T HAT THE COURSES CONDUCTED BY THE ASSESSEE DO NOT HAVE RECOGNITION FROM THE GOVT. AND FURTHER THAT THERE IS NO REGULATORY AUTHORITY TO EXERCISE CHECK ON ITS FEE STRUCTURE IS NO LONGER A VALID OBJECTION AS NOT ONLY CONSIDERING THE AFORESAID DECISION BUT ALSO CONSIDE RING THE APPROVALS/RECOGNITION OF SECTOR SPECIFIC COMPETENT AUTHORITY LIKE DGCA AT TH E NATIONAL LEVEL AND IATA AT THE GLOBAL LEVEL WHO ARE PRESUMED TO HAVE GIVEN THEIR G IVING APPROVALS AS PER INDUSTRY STANDARD REQUIREMENTS BY WAY OF THEIR AGREEMENTS/AP PROVALS ETC ON A YEAR TO YEAR BASIS AFTER DUE CARE AND DILIGENCE, CONSIDERING THE ADHERENCE OF STANDARDS AND REQUIREMENTS TO BE MET IN THE INDUSTRY SPECIFIC SKI LL/QUALIFICATION REQUIREMENTS. 15. IT MAY ALSO BE APPROPRIATE TO ALSO REFER TO THE FACT THAT THE HONBLE DELHI HIGH COURT IN THE AFORESAID CASE OF DELHI MUSIC SOCIETY (SUPRA) HAS BEEN PLACED ON THE DECISION OF THE DECISION OF THE HONBLE CALCUTTA HI GH COURT IN THE CASE OF CT VS. DOON FOUNDATION (1985) 154 ITR 208/22. THE RELEVANT EXTRACT SUPPORTING THE VIEW TAKEN FROM THE SAID DECISION IS REPRODUCED HEREUNDER FOR READY REFERENCE. '10. WE MAY REFER TO THE JUDGMENT OF THE CALCUTTA H IGH COURT IN CIT V. DOON FOUNDATION [1985] 154 ITR 208/22 TAXMAN 9. INTERPRETING THE PR OVISIONS OF SECTION 10(22) OF THE ACT, THE HIGH COURT OBSERVED AS UNDER:- ITA NO. 2131/DEL/2012 PAGE 13 OF 16 'WE ARE ALSO UNABLE TO ACCEPT THE CONTENTION OF MR. MAITRA THAT AN EDUCATIONAL INSTITUTION TO BE ELIGIBLE FOR EXEMPTION UNDER SECT ION 10(22) SHOULD BE AFFILIATED TO ANY UNIVERSITY OR ANY BOARD. SECTION 10(22) DOES NO T IMPOSE SUCH A CONDITION. SO LONG AS THE INCOME IS DERIVED FROM AN EDUCATIONAL I NSTITUTION EXISTING SOLELY FOR EDUCATIONAL PURPOSES AND NOT FOR PURPOSES OF PROFIT SUCH INCOME IS ENTITLED TO EXEMPTION UNDER SECTION 10(22), WHETHER OR NOT-SUCH EDUCATIONAL INSTITUTION IS AFFILIATED TO ANY UNIVERSITY OR COLLEGE OR BOARD IF THE CONTENTION OF THE REVENUE IS ACCEPTED. THEN MANY OF THE SOCIETIES RUNNING INSTIT UTIONS SOLELY FOR IMPARTING EDUCATION WOULD NOT GET THE BENEFIT OF SECTION 10(2 2). EDUCATION AS ENVISAGED IN SECTION 10(22) MAY BE IMPARTED IN A SCHOOL OR COLLE GE OR INSTITUTION WHICH MAY OR MAY NOT BE AFFILIATED TO, OR RECOGNIZED BY, A UNIVE RSITY OR BOARD. ' THIS JUDGMENT TAKES CARE OF THE OBJECTION OF THE PR ESCRIBED AUTHORITY THAT THE PETITIONER IS NOT AFFILIATED TO, OR RECOGNIZED BY ANY UNIVERSI TY OR BOARD IN INDIA AND THAT IT MERELY AWARDS CERTIFICATES OR GRADES WHICH ARE ISSUED BY T HE TRINITY COLLEGE AND ROYAL SCHOOL OF MUSIC, LONDON. SINCE SECTION 10 (23C)(VI) ALSO USES THE SAME LANGUAGE AS SECTION 10(22), THE SAME PRINCIPLE SHOULD GOVERN THE INTERP RETATION OF THAT PROVISION ALSO. ' 16. WE FURTHER FIND THAT THE AO IN HIS REMAND REPOR T IN THE FACE OF THE CLAIMS OF THE ASSESSEE BEFORE THE CIT(A) HAS AGAIN PLACED RELIANC E UPON THE DECISION OF THE HONBLE GUJRAT HIGH COURT IN THE CASE OF SAURASHTRA EDUCATI ON FOUNDATION VS. CIT (SUPRA). ON CONSIDERING THE FACTS OF THE SAID DECISION, WE FIND THAT THE CLAIM OF THE ASSESSEE THAT THE FACTS ARE DISTINGUISHABLE ARE FOUND TO BE CORRECT. WE FIND THAT IN THE FACTS OF THAT CASE, THE ACTIVITIES OF THE ASSESSEE WERE LIKE A COACHING INSTITUTE IN AS MUCH AS IT WAS CONDUCTING VARIOUS CLASSES FOR STUDENTS OF CLASS X, XI AND XII FOR CA ENTRANCE EXAMINATION. APART FROM THAT IT WAS ALSO HOLDING RE FRESHER COURSES FOR TEACHERS TEACHING IN VARIOUS SCHOOLS. FURTHER THE ISSUE UNDER CONSID ERATION IN THE FACTS OF THAT CASE WAS EXEMPTION CLAIMED U/S 10(22) OF THE ACT. WE FIND T HAT IN THE CIRCUMSTANCES, RELIANCE ON THE SAID DECISION WAS MISPLACED. IN FACT THE HONB LE GUJRAT HIGH COURT ITSELF HAS HELD THAT THERE IS A DIFFERENCE IN THE CONCEPT OF EDUCA TION AS ENVISAGED U/S 2(15) WITH RESPECT TO SECTION 11 OF THE ACT VIS A VIS SECTION 10(22) OF THE ACT. THE FOLLOWING EXTRACT FROM THE SAID JUDGMENT BRINGS OUT THIS FACT:- 'IT IS SIGNIFICANT TO NOTE THAT WHILE A TRUST HOLDI NG PROPERTY FOR A CHARITABLE PURPOSE OF EDUCATION AS DEFINED BY SECTION 2(15) MA Y ALSO BE AN EDUCATIONAL INSTITUTION EXISTING SOLELY FOR THE PURPOSE OF EDUC ATION, THE TWO INSTITUTIONS CANNOT BE TREATED AS BELONGING TO THE SAME CLASS. AN INSTI TUTION MAY BE CARRYING ON ITA NO. 2131/DEL/2012 PAGE 14 OF 16 EDUCATIONAL ACTIVITIES AS ARE BEING CARRIED ON BY T HE ASSESSEE HEREIN WITHOUT IMPARTING FORMAL EDUCATION AND WITHOUT BEING AFFILI ATED TO OR ACCOUNTABLE TO ANY AUTHORITY. SUCH A TRUST CAN CERTAINLY BE CONSIDERED AS QUALIFYING FOR EXEMPTION UNDER SECTION 11 (1)(A) READ WITH SECTION 2(15), HU T THE TERM 'THE EDUCATIONAL INSTITUTION' CONTEMPLATED BY SECTION I0 (22) IS A N ARROWER CONCEPT. THOUGH 'EDUCATIONAL INSTITUTION' AND THE EDUCATIONAL ACTIV ITIES ARE CLOSELY INTERCONNECTED; IN SECTION 11 (1)(A), READ WITH SECTION 2(15) IT IS THE ACTIVITIES WHICH ARE IN FOCUS, WHEREAS IN SECTION 10(22) BOTH THE INSTITUTION AND THE ACTIVITIES ARE IN FOCUS A N EDUCATIONAL INSTITUTION UNDER SECTION 10(22) IS, TH EREFORE, MORE THAN A BODY CARRYING ON CHARITABLE ACTIVITIES IN THE FIELD OF E DUCATION AS CONTEMPLATED BY SECTION 2(15) . 17. WE FURTHER FIND THAT THE FACT THAT EXEMPTION U/ S 12A HAS NOT BEEN WITHDRAWN BY DI (EXEMPTION) AS NOTED IN THE EARLIER PART OF THIS ORDER IS A FACT WHICH HAS NOT BEEN UPSET AS THE ASSESSEE CONTINUES TO ENJOY EXEMPTION U/S 12A, A FINDING WHICH HAS NOT BEEN ASSAILED BY THE REVENUE. ACCORDINGLY, CONSIDE RING THE DECISION OF THE ITAT IN THE CASE OF SURAT CITY GYMKHANA VS. ACIT REPORTED IN 76 ITD 12 7 (AHD.) WHICH HAS BEEN UPHELD BY THE HONBLE GUJARAT HIGH COURT AND S TANDS AFFIRMED BY THE HONBLE APEX COURT IN THE CASE OF ACIT VS. SURAT CITY GYMKHANA (SC), WE FIND THAT IT IS ALSO WORTH REFERRING TO AT THIS JUNCTURE. THUS, REFERENCE TO THE FOLLOWING DISCUSSIONS FROM THE ORDER OF ITAT IN THE FACTS OF THAT CASE WOULD BE APPROPR IATE IN THE FACTS OF THE PRESENT CASE AT THIS STAGE IN ORDER TO FURTHER FORTIFY THE VIEW TAK EN:- '25 ..............IT IS FURTHER TO BE NOTED THAT TH E CIT, SURAT HAS REGISTERED THE ASSESSEE TRUST ON 4-1-1984 UNDER SECTION 12A. SECTION 12A PR OVIDES THAT FOR CLAIMING EXEMPTION UNDER SECTION 11 IT IS MANDATORY THAT AN APPLICATIO N FOR REGISTRATION OF THE TRUST IN PRESCRIBED FORM NO. 10A IS FILED BEFORE THE CIT ALO NG WITH THE INSTRUMENT UNDER WHICH THE INSTITUTION IS ESTABLISHED ACCOMPANIED WITH THE ACCOUNTS OF THE INSTITUTION RELATING TO SUCH PRIOR YEAR OR YEARS FOR WHICH SUCH ACCOUNTS HA VE BEEN MADE UP. THE GRANT OF REGISTRATION BY THE CIT UNDER SECTION 12A DOES NOT CONSTITUTE AN EMPTY FORMALITY WHICH IS TO BE COMPLETED IN A ROUTINE AND MECHANICAL FASHION BY THE CIT WITHOUT ANY SCRUTINY REGARDING THE CHARITABLE NATURE OF THE TRUST OR INS TITUTION REQUIRED TO BE REGISTERED UNDER THE 1. T. ACT. IF GOES WITHOUT SAYING THAT REGISTRA TION UNDER SECTION 12A IS TO BE GRANTED ONLY IF THE CIT IS SATISFIED THAT THE TRUST OR THE INSTITUTION IS A CHARITABLE INSTITUTION AND ITS OBJECTS ARE COVERED AS CHARITABLE AS PER THE DEFINI TION OF 'CHARITABLE PURPOSES' CONTAINED UNDER SECTION 2(15) OF THE ACT. ONCE THE INSTITUTIO N HAS BEEN REGISTERED UNDER SECTION 12A, IT IS FOR THE ASSESSING OFFICER TO FIND OUT WH ETHER THE INCOME OF THE INSTITUTION HAS BEEN APPLIED FOR THE OBJECTS OF THE INSTITUTION AND THE STATUTORY CONDITIONS AS CONTAINED UNDER SECTIONS 11 TO 13 ARE FULFILLED BY THE ASSESS EE. IN OUR OPINION IT IS BEYOND THE POWERS OF THE ASSESSING OFFICER TO REJECT THE CLAIM OF EXEMPTION UNDER SECTION 11 BY LOOKING INTO THE OBJECTS OF THE ASSOCIATION AND HOL DING THE SAME AS NON-CHARITABLE IN ITA NO. 2131/DEL/2012 PAGE 15 OF 16 NATURE. IN SUPPORT OF THE VIEW BEING TAKEN BY US HE RE, RELIANCE IS PLACED ON THE JUDGMENT OF CALCUTTA HIGH COURT IN ANANDA MARGA PRACHARAKA S ANGH V. CIT [1996J 218 ITR 254.AT PAGE 270 OF THE REPORT THEIR LORDSHIPS OBSERVED AS FOLLOWS: 'IT MAY BE MENTIONED HERE THAT THE REGISTRATION OF THE CHARITABLE SOCIETY AS A CHARITABLE SOCIETY UNDER SECTION 12A IS NOT AN IDLE OR EMPTY FORMALITY. THIS IS APPARENT FROM THE TENOR OF THE PROVISIONS OF SECTIO N 12A. IT REQUIRES THAT NOT ONLY AN APPLICATION SHOULD BE FILED IN (HE PRESCRIBED FO RM SETTING OUT THE DETAILS OF THE ORIGIN OF THE TRUST BUT ALSO THE NAMES AND ADDRESSE S OF THE TRUSTEES AND/OR MANAGERS. THE FORM FURTHER REQUIRES A CERTIFIED COP Y OF THE INSTRUMENT OF ITS CREATION AS WELL AS TWO COPIES OF THE LATEST ACCOUN TS OF THE APPLICANT-TRUST OR INSTITUTION FOR AS FAR AS BACK AS THREE YEARS TO AC COMPANY EACH APPLICATION. THE REQUIREMENT OF OBTAINING THE DETAILS AS ALSO THE CO PIES OF THE PAST ACCOUNTS CANNOT BE SAID TO BE A CEREMONIAL ONE. THE PURPOSE IS TO EXAMINE THE OBJECTS OF CREATION A' WELL AS AN EMPIRICAL STUDY OF THE PAST ACTIVITIES OF THE APPLICANT FOR THREE YEARS WHERE THE APPLICATION IS MADE BELATEDLY SO THAT THE COMMISSIONER COULD COME TO A CONCLUSION ON EXAMINATION OF ALL TH E FACTORS THAT THE APPLICANT IS REALLY A CHARITABLE TRUST OR INSTITUTION ELIGIBLE F OR REGISTRATION. ' SIMILAR VIEW HAS BEEN TAKEN BY THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF MRS. DWARIKA PRASAD TRUST (SUPRA) RELIED UPON BY TH E ID. COUNSEL. THE DECISIONS OF THE ALLAHABAD HIGH COURT IN FIFTH GENERATION EDU CATION SOCIETY'S CASE (SUPRA) AND CALCUTTA HIGH COURT IN CIT V. GANAPATRA.SAGARMA L [J990} 182 ITR 89 HAVE TAKEN SIMILAR VIEW IN THE MATTER. IN VIEW OF THE AF ORESAID DISCUSSION, WE FEEL THAT AFTER ALLOWING REGISTRATION UNDER SECTION 12A IT IS NOT FOR THE ASSESSING OFFICER TO DENY EXEMPTION UNDER SECTION 11 ON THE GROUND THAT THE ASSESSEE ASSOCIATION IS NOT CHARITABLE IN NATURE. 26. REGARDING THE TWO DECISIONS CITED BY THE ID D.R . VIZ.FIFTH GENERATION EDUCATION SOCIETY'S CASE (SUPRA) AND SHANTAGAURI RA MNIKLAL TRUST'S CASE (SUPRA), WE FIND THAT BOTH THESE DECISIONS RATHER SUPPORT TH E VIEW BEING TAKEN BY US HERE AND THE RELIANCE PLACED BY THE LEARNED DR IS ENTIRE LY MIS-CONCEIVED. IN SHANTAGAURI RAMNIKLAL TRUST'S CASE (SUPRA) THE HON' BLE GUJARAT HIGH COURT HELD THAT WHENEVER APPLICATION IS MADE FOR REGISTRATION UNDER SECTION 12A, IT IS FOR THE CIT TO MAKE AN INQUIRY AND REACH CONCLUSION REGARDI NG THE CHARITABLE NATURE OF THE ASSESSEE TRUST. OBVIOUSLY ONCE THE CONCLUSION H AS BEEN REACHED BY THE CIT THAT THE OBJECTS OF THE TRUST ARE CHARITABLE AND TH E CIT PROCEEDS TO REGISTER THE TRUST, THE ASSESSING OFFICER IS PRECLUDED FROM CARR YING OUT THE SAME EXERCISE AGAIN AND DENY THE CLAIM OF EXEMPTION UNDER SECTION 11. ' 18. CONSIDERING THE PECULIAR FACTS AND CIRCUMSTAN CES OF THE CASE AND THE POSITION OF THE LAW WHICH IS FURTHER FOUND SUPPORTED BY THE DECISIO N OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF DIT VS. WOMENS INDIA TRUST 379 ITR 506 (BOMBAY) THE CHALLENGE POSED BY THE REVENUE THAT EXEMPTION U/S 11 & 12 OF THE ACT WAS NOT WARRANTED IS FOUND TO BE NOT SUSTAINABLE. ITA NO. 2131/DEL/2012 PAGE 16 OF 16 18.1. ACCORDINGLY ON ACCOUNT OF THE ABOVE REASONING , FACTS, CIRCUMSTANCES AND POSITION OF LAW, WE FIND THAT THE DEPARTMENTAL GROUNDS HAVIN G NO MERIT HAVE TO BE DISMISSED. ORDERED ACCORDINGLY. 19. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON 16 TH MAY, 2016. SD/- SD/- (PRASHANT MAHARISHI) (DIVA SINGH) ACCOUNTANT MEMBER J UDICIAL MEMBER VEENA/AMIT KUMAR COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR