Saraswati Shishu Madir, Faridabad V. CIT, Faridabad

ITA 2848/DEL/2008

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9711 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 25-06-2009
• Assessment Year: 2008-2009
• Appeal Filed On: 04-09-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `G : NEW DELHI) BEFORE HONBLE SR. VICE PRESIDENT SHRI R.P. GARG A ND HONBLE JUDICIAL MEMBER, SHRI RAJPAL YADAV ITA NO.2848/DEL./2008 (ASSESSMENT YEAR : N.A.) SARASWATI SHISHU MANDIR PRABANDHAN SAMITI, VS. CIT , FARIDABAD. BYE PASS, ROAD, PALWAL. (PAN/GIR NO.AADTS6047G) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.D. MITTAL, ADV. REVENUE BY : SHRI B. MURALI KUMAR, CIT(DR) ORDER PER R.P. GARG, SR.VP THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX, REFUSING EXEMPTION U/S 80G OF THE ACT ON THE GROUND THAT THE ASSESSEE REMAINED SILENT, WHETHER IT HAD BEEN REGISTERED U/S 12A OF THE I.T. ACT, OR NOT AND THAT THE OBJECTS OF THE SOCIETY DOES NOT FALL UNDER THE CATE GORY OF EDUCATION. 2. THE SOCIETY WAS REGISTERED WITH REGISTRAR OF FIR MS & SOCIETY, PUNJAB ON 11.2.1962 WITH THE OBJECTS OF : (I) TO PROMOTE THE EDUCATION, MENTAL, SOCIAL AND PH YSICAL WELL BEING OF THE CHILDREN. (II) TO PRODUCE PHYSICALLY SOUND, MENTALLY ALERT AN D SOCIALLY WELL ADJUSTED CHILDREN. (III) TO RUN THE INSTITUTION AND LIBRARIES AND DO A LL SUCH THINGS WHICH ARE CONSIDERED APPROPRIATE TO HELP THE CAUSE GIVEN ABOV E. IT HAS BEEN RUNNING THREE EDUCATIONAL INSTITUTIONS, NAMELY ITA NO.2848/DEL./2008 (A.Y. : N.A.) 2 1. SARASWATI SHISHU MANDIR : (A) NEW COLONY ROAD, PALWAL (B) MAHILA SHIVPURI, PALWAL 2. SARASWATI SENIOR SECONDARY SCHOOL, BYE PASS ROAD , PALWAL. 3. SARASWATI MAHILA MAHAVIDHYALAYA, BYE PASS ROAD, PALWAL. APART FORM THESE ACTIVITIES, THERE IS NO OTHER ACTI VITIES CARRIED OUT BY THE SOCIETY SINCE ITS INCEPTION. THE SOCIETY WAS GRANTED REGISTRATION U/ S 12A VIDE ORDER DATED 29.4.1981 AND CONSEQUENTLY ASSESSMENTS WERE COMPLETED U/S 143(3) AT NIL INCOME. THE LAST RENEWAL U/S 80G(5) WAS ALSO GRANTED ON 24.5.2007 FOR THE PERIOD FROM 1.4.2002 TO 31.3.2007. ON A PERUSAL OF THE OBJECTS IT IS EVIDENT THAT IT WAS AN EDUCATIONAL INSTITUTION. TO MAKE IT ABUNDANTLY CLEAR, CIT HELD THAT THE OBJECTS OF THE SOCIETY ARE NOT EDUCATIONAL. HE OBSERVED THAT A PERUSAL OF THE OBJECTS REVEALS THAT THOUGH THE WORD EDUCATION IS MENTIONED INTER ALIA IN ONE OUT OF THREE OBJECTS, B UT BESIDES THIS THERE ARE OBJECTS LIKE PROMOTION OF MENTAL, SOCIAL AND PHYSICAL WELL BEING OF THE CHILDREN AND THAT SECOND OBJECT OF THE SOCIETY IS TO PRODUCE PHYSICALLY SOUN D, MENTALLY ALERT AND SOCIALLY WELL ADJUSTED CHILDREN, IN RESPECT OF WHICH IT CANNOT BE CONSTRUED THAT THE SAID OBJECTS ARE TO BE ACHIEVED BY WAY OF EDUCATION ONLY. THE TRUST IS NO T RUNNING ONLY FOR THE PURPOSE OF EDUCATION AND THESE OBJECTS ARE TO BE READ IN THIS CONTEXT AND IF SO READ, IN OUR OPINION, WOULD FALL WITHIN THE PARAMETER OF EDUCATION AS UND ERSTOOD IN SECTION 2(15) OF THE ACT. THE OBJECTS ARE TO BE SEEN IN THE LIGHT OF THE DEFI NITION OF EDUCATION GIVEN IN THE SUPREME COURT DECISION IN THE CASE OF SOLE TRUSTEE, LOKA SH IKSHANA TRUST VS. CIT, 101 ITR 234 AT PAGE 241 IN WHICH THE WORD EDUCATION HAS BEEN USE D IN SECTION 2(15) IN THE SYSTEMATIC INSTRUCTION, SCHOOLING OR TRAINING GIVEN TO THE YOU NG IS PREPARATION FOR THE WORK OF LIFE. IT ALSO CONNOTES THE WHOLE COURSE OF SCHOLASTIC INSTRU CTION WHICH A PERSON HAS RECEIVED. THE WORD EDUCATION HAS NOT BEEN USED IN THAT WIDE AND EXTENDED SENSE, ACCORDING TO WHICH EVERY ACQUISITION OF FURTHER KNOWLEDGE CONSTI TUTES EDUCATION. WHAT EDUCATION CONNOTES IN THAT CLAUSE IS THE PROCESS OF TRAINING AND DEVELOPING THE KNOWLEDGE, SKILL, MIND AND CHARACTER OF STUDENTS BY NORMAL SCHOOLING. EVEN OTHERWISE, THE CHARITY IS NOT RESTRICTED TO EDUCATION AND ON A READING OF THE CLA USES IN SUBSTANCE, WE FIND THAT THEY ARE OF CHARITABLE IN NATURE MAY NOT BE EXCLUSIVELY FOR EDUCATION AS OBSERVED BY THE CIT, BUT ITA NO.2848/DEL./2008 (A.Y. : N.A.) 3 OF GENERAL PUBLIC INTEREST. IN THESE CIRCUMSTANCES , INSOFAR AS THE SECTION 80G IS CONCERNED THAT SHOULD NOT BE DISALLOWED ON THAT GROUND. THER EFORE, THE GROUND RAISED IN THIS APPEAL IS ALLOWED. 3. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED. 4. ORDER PRONOUNCED IN OPEN COURT ON 10.07.2009. (RAJPAL YADAV) (R.P. GARG) JUDICIAL MEMBER SR. VICE PRESIDENT DATED: JULY 10, 2009. *SKB* COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT, FARIDABAD. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. AR/ITAT