THE INDIAN INSTITUTE OF BANKING & FINANCE ( FORMERLY KNOWN AS THE INDIAN INSITUTE OF BANKERS), MUMBAI V. ADIT (E) RG II(1), MUMBAI

ITA 3087/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3152 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: I
• Next Hearing Date: 01-03-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 22-04-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: AGAINST TH E DATED PASSED
• Keywords: Charitable institution; Capital receipt
• Section: 11

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL I BENCH, MUM BAI . . , , ! ' #$, % , & BEFORE SHRI G.S.PANNU, AM AND SHRI AMARJIT SINGH, J M / I.T.A. NO.3087/M/2013 ( % ' !(' / ASSESSMENT YEAR: 2009-10) THE INDIAN INSTITUTE OF BANKING & FINANCE (FORMERLY KNOWN AS THE INDIAN INSTITUTE OF BANKERS) / VS. THE ASST. DIRECTOR OF INCOME TAX EXEMPTION RG.II(1) PIRAMAL CHAMBERS, LALBAUG, PAREL, MUMBAI - 400012 ./ ./ PAN/GIR NO. : AAATT3309D ( / APPELLANT ) .. ( / RESPONDENT ) / DATE OF HEARING: 08.03.2016 !' /DATE OF PRONOUNCEMENT: 23.06.2016 #$ / O R D E R PER AMARJIT SINGH, JM: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER DATED 01.02.2013 PASSED BY THE COMMISSIONER OF INCO ME TAX (APPEALS)-1, MUMBAI [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO THE ASSESSMENT YEAR 2009-10. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS:- ASSESSEE BY: SHRI NITESH JOSHI DEPARTMENT BY: SHRI B.C.S. NAIK (CIT-DR) ITA NO.3087/M/13 A.Y. 2009-10 2 1. THE GROUNDS OF APPEAL THAT FOLLOW ARE ALL INDE PENDENT AND WITHOUT PREJUDICE TO EACH OTHER. 2. RE: EXEMPTION UNDER SECTION 11: 2.1 THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED COMMISSIONER OF INCOME TAX (APP EALS) ERRED IN UPHOLDING THE ASSESSING OFFICERS ACTION I N REJECTING THE APPELLANTS CLAIM FOR EXEMPTION UNDER SECTION 11 ON THE GROUND THAT THE APPELLANTS PRIMARY ACTIV ITIES WERE NOT FOR THE BENEFIT OF THE PUBLIC AT LARGE AND WERE ALSO NOT OF CHARITABLE NATURE. 3.0 RE: TAXABILITY OF CAPITAL RECEIPTS / CORPUS DON ATIONS: 3.1 THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW, LEARNED COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN UPHOLDING THE ACTION OF THE ASSESSING OFFI CER IN ADDING BACK A SUM OF RS.5,18,57,100/- (THE CORRECT FIGURE BEING RS.4,82,57,100) ON ACCOUNT OF LIFE MEMBERSHIP FEES OF RS.4,61,57,100 AND THE CORPUS DONATIONS OF RS.57,00 ,000 (THE CORRECT FIGURE BEING RS.21,00,000) ON THE GROU ND THAT SINCE THE APPELLANTS WERE NOT ENTITLED TO CLAIM THE EXEMPTION UNDER SECTION 11, THE SAME WERE LIABLE TO BE TAXED. 3.2 THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW, LEARNED COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN UPHOLDING THE ACTION OF THE ASSESSING OFFI CER IN FAILING TO APPRECIATE THE FACT THAT EVEN PRESUMING, WITHOUT ADMITTING, THAT THE APPELLANTS WERE NOT ENTITLED TO CLAIM EXEMPTION UNDER SECTION 11, THE SAID CAPITAL / CORP US RECEIPTS, BEING OF CAPITAL NATURE ,COULD NOT BE TAX ED EVEN UNDER THE GENERAL PRINCIPLES OF LAW AND THAT INCOME COULD ONLY INCLUDE REVENUE RECEIPTS. 4. RE: DEDUCTION OF EXPENSES: 4.1 THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW, LEARNED COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN UPHOLDING THE ACTION OF THE ASSESSING OFFI CER IN NOT REDUCING THE EXPENSES INCURRED BY THE APPELLANT BY WAY OF AMORTIZATION OF PREMIUM ON INVESTMENTS, PURCHASE OF FIXED ASSETS, AWARDING OF PRIZES AND WRITE-OFF OF IRRECOV ERABLE BALANCES. ITA NO.3087/M/13 A.Y. 2009-10 3 5. RE: OTHER STATUTORY DEDUCTIONS: 5.1 THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED COMMISSIONER OF INCOME TAX (APP EALS) ERRED IN UPHOLDING THE ACTION OF THE ASSESSING OFFI CER IN NOT GRANTING THE STATUTORY DEDUCTIONS ON ACCOUNT OF AMO UNT SET ASIDE BY APPELLANT FOR FUTURE REQUIREMENTS TO THE E XTENT OF RS.3,86,69,667/- (15% OF INCOME)AND ON ACCOUNT OF T HE BALANCE SUM (BEING THE AMOUNT ACCUMULATED BY THE APPELLANT FOR SPECIFIED PURPOSES IN CONFORMITY WITH THE PROVISIONS OF SECTION 11(2). ADDITIONAL GROUND:- 6. RE: CLAIM FOR EXEMPTION UNDER SECTION 10(23C)(V I): THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE APPELLANT OUGHT TO BE GRANTED EXEMPTION UNDER SECTION 10(23C)(VI) OF THE INCOME TAX ACT, 1961 AS AN EDUCATIONAL INSTITUTION IN RESPECT OF SURPLUS OF IN COME OVER EXPENDITURE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIAN COMPANY INCORPORATED U/S.25 OF THE INDIAN COMPANIES ACT. INITIALLY, THE COMPANY WAS AN ASSOCIATION CALLED THE INDIAN IN STITUTE OF BANKERS AND SUBSEQUENTLY THE ASSESSEES NAME WAS CHANGED TO INDIAN INSTITUTE OF BANKING AND FINANCE. THE PRINCIPLE OBJECTS OF T HE ASSESSEE AS PER THE MEMORANDUM OF ASSOCIATION ARE AS UNDER:- I) TO ENCOURAGE THE STUDY OF THE THEORY OF BANKING AND FOR THAT PURPOSE TO INSTITUTE A SCHEME OF EXAMINATIONS AND TO GIVE CERTIFICATES, SCHOLARSHIP AND PRIZES. ITA NO.3087/M/13 A.Y. 2009-10 4 II) TO PROMOTE INFORMATION ON BANKING AND KINDRED S UBJECTS BY LECTURES, DISCUSSIONS, BOOKS, CORRESPONDENCE WIT H PUBLIC BODIES AND INDIVIDUALS OR OTHERWISE. III) TO COLLECT AND CIRCULATE STATISTICS AND OTHER INFORMATION RELATING TO THE BUSINESS OF BANKING IN INDIA. IV) TO ACQUIRE BY PURCHASE, DONATION OR OTHERWISE A ND TO MAINTAIN EXTEND AND IMPROVE A LIBRARY CONSISTING OF WORKS ON BANKING, COMMERCE, FINANCE, POLITICAL ECON OMY AND KINDRED SUBJECTS. THE ASSESSING OFFICER CONCLUDED THAT THE ASSESSEE F IRM WAS NOT ENTITLED FOR THE EXEMPTION U/S.11 OF THE INCOME TAX ACT, 1961( IN SHORT THE ACT). THEREFORE, DECLINED THE LIFE MEM BERSHIP ACCOUNTS AND CORPUS DONATIONS AND OTHER EXPENSES UNDER CHALL ENGE WHICH WERE CONFIRMED BY THE LEARNED CIT(A) HENCE THE ASSESSEE HAS FILED THE PRESENT APPEAL BEFORE US. ISSUE NO.1 4. ISSUE NO.1 IS FORMAL IN NATURE WHICH DOES NOT RE QUIRE ANY ADJUDICATION AT ALL. ISSUE NO.2 5. AT THE VERY OUTSET THE LEARNED REPRESENTATIVE OF THE ASSESSEE HAS ARGUED THAT THE HONBLE INCOME TAX APPELLATE TRIBUN AL, MUMBAI ITA NO.3087/M/13 A.Y. 2009-10 5 BENCH IN ITA NO.5725/MUM/2012 IN ASSESSEES OWN CAS E FOR A.Y.2008-09 DATED 11.02.2015 HAS DECIDED THIS ISSUE IN HIS FAVOUR, THEREFORE PRESENT ISSUE IS LIABLE TO BE DECIDE IN F AVOUR OF THE ASSESSEE BEING THERE IS NO CHANGE IN CIRCUMSTANCES AT ALL. H OWEVER, ON THE OTHER HAND THE LEARNED REPRESENTATIVE HAS STRONGLY RELIED UPON THE ORDER PASSED BY THE LEARNED CIT(A). THE ORDER DATE D 11.02.2015 PASSED BY THE ITAT IN ASSESSEES OWN CASE FOR A.Y.2 008-09 PERUSED. THE HONBLE ITAT ON SEEING OBJECT AND ACTIVITY OF T HE APPELLANT COMPANY HAS DECIDED THIS ISSUE IN THE FAVOUR OF THE ASSESSEE. THE RELEVANT PARA 9 TO 21 ARE HEREBY REPRODUCED BELOW F OR READY REFERENCE:- 9. BEFORE US, THE AR FAIRLY SUBMITTED THAT IN SO F AR AS CLAIM OF EXEMPTION U/S.10(23C)(VI) IS CONCERNED, IT HAS B EEN REJECTED BY THE CCIT, MUMBAI. BUT THE CLAIM OF SECTION 11 I S STILL ALIVE AND HAS BEEN DENIED BECAUSE OF AMORTIZATION OF PREM IUM ON INVESTMENT AND PURCHASE OF FIXED ASSETS AND IN NOT ALLOWING STATUTORY DEDUCTIONS FOR FUTURE REQUIREMENTS SET AP ART AS PER SECTION 11(2). THE AR SUBMITTED THAT ITS CLAIM FOR EXEMPTION UNDER SECTION 11 OF THE ACT HAS BEEN DENIED FOR THE FOLLOWING THREE REASONS I.E. THE ASSESSEE IS NOT PURSING AN E DUCATIONAL ACTIVITY, IT HAS GENERATED HUGE SURPLUS AND 10. THE ASSESSEE MADE ITS SUBMISSIONS WITH RESPECT TO EACH O THE AFORESAID ISSUES. ITA NO.3087/M/13 A.Y. 2009-10 6 11. WITH RESPECT TO THE REASONING GIVEN BY THE AO T HAT THE ASSESSEE IS NOT PURSUING AN EDUCATIONAL ACTIVITY, T HE ASSESSEE PLACED RELIANCE UPON THE DECISION OF THE COORDINATE BENCH OF THE ITAT IN ITS OWN CASE IN ASSESSMENT YEARS 1996-97 T O 1998-99 (APB 205 TO 219). IN THESE DECISIONS THE TRIBUNAL AFTER CONSIDERING THE FACTS PERTAINING TO ITS OBJECTS AS PER ITS MEMORANDUM OF ASSOCIATION, THE COURSES CONDUCTED BY IT AND ITS MANNER OF FUNCTIONING, CONCLUDED THAT THE ASSES SEE WAS PURSUING EDUCATIONAL ACTIVITIES. THE AR THEREFORE, SUBMITTED THAT, IN SO FAR THE ISSUE PERTAINING TO CONDUCT OF EDUCATIONAL ACTIVITIES IS CONCERNED, THE SAME IS COVERED AND CO NCLUDED IN ITS FAVOUR BY THE ITAT. 12. WITH RESPECT TO THE ABOVE, THE AR DREW OUR ATT ENTION TO THE DETAILED SUBMISSIONS FILED BY IT BEFORE THE CIT (A), WHEREIN SPECIFIC REFERENCE WERE MADE IN PARAGRAPHS (APB 22 TO 29). THE AR ALSO PLACED RELIANCE ON THE FOLLOWING DECISI ONS: CITY MONTESSORI SCHOOL VS UOJ, REPORTED IN 315 ITR 48 (ALL); DIT (E) VS AHMEDABAD MANAGEMENT ASSOCIATION, ORDER DATED 13.06.2014, BY THE HON'BIEGUJARAI HIGH COURT, ITA N O. 707 OF 2013; DIT US SAMUDRA INSTITUTE OF MERITIME STUDIES TRUST, REPORTED IN (2014) 49 TAXMAN.COM 510 (BOM) (COPIES ENCLOSED}, : WHEREIN THE RATION HAS BEEN LAID THAT THE ASSOCIATI ONS HAD BEEN RUNNING EDUCATIONAL INSTITUTIONS AND HAVING EDUCATI ONAL ACTIVITY. ITA NO.3087/M/13 A.Y. 2009-10 7 13. THE PRIMARY REASON FOR DENIAL OF EXEMPTION U/ S 11 ARE, THAT THE INSTITUTE HAS GENERATED HUGE SURPLUS AND THE IN STITUTE IS NOT OPEN TO PUBLIC AT LARGE. 14. THE MEMORANDUM OF ASSOCIATION WHEN READ OUT, W E FIND THAT THE INSTITUTE HAD BEEN BROUGHT UP ONLY FOR THE PURPOSE OF DEVELOPMENT OF BAKING PERSONNEL FOR/IN THE BANKING INDUSTRY. THE INSTITUTE IMPARTS EDUCATION TO THE CANDIDATES W HO ARE CONNECTED WITH THE BANKING INDUSTRY. IT HAS LIBRARY FACILITY, ORGANIZES LECTURES, SEMINARS AND UNDERTAKE EXAMINAT IONS FOR PROMOTING BANK OFFICERS. 15. IN SO FAR AS ITS INVESTMENTS ARE CONCERNED IT WAS EXPLAINED, THE SURPLUS, IF. ANY; ARISING OUT OF THE ACTIVITIES OF THE INSTITUTE IS NOT DISTRIBUTED BY WAY OF DIVIDEND, BO NUS OR BY WAY OF PROFITS TO THE MEMBERS OF THE INSTITUTE. THIS IS EVIDENT FROM CLAUSE 4 OF THE MOA, WHICH IS REPRODUCED HEREIN BEL OW FOR YOUR HONOR'S READY PERUSAL. 16. THE INCOME AND PROPERTY OF THE INSTITUTE, WHEN SOEVER DERIVED, SHALL BE APPLIED SOLELY TOWARDS THE PROMOT ION OF THE OBJECTS OF THE INSTITUTE AS SET FORTH IN THIS MEMOR ANDUM OF ASSOCIATION; AND NO PORTION THEREOF SHALL BE PAID O R TRANSFERRED, DIRECTLY OR INDIRECTLY, BY WAY OF DIVIDEND, BONUS O R OTHERWISE ITA NO.3087/M/13 A.Y. 2009-10 8 HOWSOEVER BY WAY OF PROFIT, TO THE MEMBERS OF THE I NSTITUTE. PROVIDED THAT NOTHING HEREIN SHALL PREVENT THE PAYM ENT, IN GOOD FAITH, OF REMUNERATION TO ANY OFFICER OR SERVANT OF THE INSTITUTE, OR TO ANY MEMBER OF THE INSTITUTE OR' OTHER PERSON, IN RETURN FOR ANY SERVICES ACTUALLY RENDERED TO THE INSTITUTE . 17 THAT THE MEMBERS ARE ALSO NOT ENTITLED TO ANY S HARE IN THE SURPLUS THAT MAY ARISE ON WINDING UP OR DISSOLU TION OF THE INSTITUTE, SUCH SURPLUS, IF ANY, HAS TO BE HANDED O VER TO OTHER INSTITUTIONS HAVING SIMILAR OBJECTS AND IF THIS IS NOT FEASIBLE APPROPRIATED, SHALL BE ADVANCED FOR SOME CHARITABLE OBJECTS. THIS IS EVIDENT FROM CLAUSE 8 OF THE MEMORANDUM, WH ICH IS REPRODUCED BELOW: IF UPON THE WINDING UP OR DISSOLUTION OF THE INSTIT UTE THERE REMAINS, AFTER THE SATISFACTION OF ALL ITS DE BTS AND LIABILITIES, ANY PROPERTY WHATSOEVER, THE SAME SHAL L NOT BE PAID TO OR DISTRIBUTED AMONG THE MEMBERS OF THE INS TITUTE, BUT SHALL BE GIVEN OR TRANSFERRED TO SOME OTHER INS TITUTION OR INSTITUTIONS HAVING OBJECTS SIMILAR TO THE OBJEC TS OF THIS INSTITUTE, AND WHICH SHALL PROHIBIT THE DISTRIBUTIO N OF ITS PART OF THEIR INCOME AND PROPERTY AMONG ITS OR THEI R MEMBERS TO AN EXTENT AT LEAST AS GREAT AS IS IMPOSE D ON THE INSTITUTE OR BY VIRTUE OF CLAUSE 4 THEREOF, SUC H INSTITUTION OR INSTITUTION TO BE DETERMINED BY THE MEMBERS ITA NO.3087/M/13 A.Y. 2009-10 9 OF THE INSTITUTE AT OR BEFORE THE TIME OF DISSOLUTI ON, AND IN DEFAULT THEREOF BY SUCH JUDGE OF THE HIGH COURT OF JUDICATURE AT BOMBAY OR OTHER JUDGE AS MAY HAVE OR ACQUIRE JURISDICTION, THE MATTER, AND IF AND SO FAR AS EFFECT CANNOT BE GIVEN TO THE AFORESAID PROVISION THEN TO SOME CHARITABLE OBJECT. HELD FOLLOWING EXAMINATION: (A) ASSOCIATE EXAMINATION (CAIIB); (B) DIPLOMA IN INTERNATIONAL BANKING; (C) DIPLOMA IN FINANCIAL SERVICES; (D) DIPLOMA IN BANK MANAGEMENT; (E) CERTIFICATE IN BANKING ORIENTED PAPER IN HINDI; (F) CERTIFICATE EXAMINATION FOR THE EMPLOYEES OF UNIT TRUST OF INDIA. 15. A DETAILED LIST OF THE ASSESSEE'S ACTIVITIES IS -FOUND IN THE RECORDS, WHICH WAS PLACED BEFORE THE REVENUE AUTHOR ITIES AS WE AS US. 16. FOR ADVANCEMENT IN BANKING INDUSTRY, THE NUMBER OF STUDENTS ENROLLING FOR VARIOUS COURSES OFFERED BY T HE INSTITUTE INCREASED STEADILY OVER THE YEARS, THEREBY REFLECTI NG THE GROWING POPULARITY OF THE INSTITUTE'S COURSES IN THE BANKIN G ARENA. THE LIST OF THE VARIOUS COURSES OFFERED BY THE INSTITUT E IS ON RECORD. 17. REVERTING OUR ATTENTION TO THE REASONING GIVEN BY THE REVENUE AUTHORITIES, THAT THE ASSESSEE WAS GENERATI NG HUGE ITA NO.3087/M/13 A.Y. 2009-10 10 SURPLUS, IT WAS SUBMITTED THAT AS PER SECTION 11 OF THE ACT THE ASSESSEE COULD SPEND 85% OF ITS INCOME TOWARDS CHAR ITABLE OBJECTS. IT WAS SUBMITTED THAT IF THERE WAS A SURPL US, IT COULD BE LEGALLY ACCUMULATED UNDER SECTION 11 (2) OF THE ACT THE AR SUBMITTED THAT THE ASSESSEE HAS ALWAYS COMPLIED WIT H THE SAID REQUIREMENT IN EACH OF THE YEARS. THE ACCUMULATION OF THE CORPUS, IF ANY, HAS BEEN SPENT IN ACCORDANCE WITH T HE PROVISIONS OF SECTION 11(2) OF THE ACT. ACCEPT FOR THIS FACT, THE AR SUBMITTED, THE REVENUE AUTHORITIES, DID NOT HAVE AN Y ARGUMENT, WHICH COULD RENDER THE BENEFIT OF SECTION 11 UNAVAI LABLE TO THE ASSESSEE. 18. THE AR FURTHER SUBMITTED THAT LOOKING FROM THE POINT OF VIEW OF DISPOSAL OF ITS FUNDS, I.E. THE ENTIRE EXPE NSES INCURRED TOWARDS THE EDUCATIONAL ACTIVITY HAS BEEN DONE OUT OF THE EDUCATIONAL RECEIPTS ONLY, WHICH RESULTED IN A. DEF ICIT IN FINANCIAL YEARS 1999-2000T~'2007-08 (APB 72). ANY I NTEREST AND/OR WRITE BACK HAS BEEN EXCLUDED FROM THE GROSS RECEIPT, MEANING THAT RECEIPTS AS SHOWN ARE PURE, OUT OF THE EDUCATIONAL ACTIVITY . 19. SINCE THE ASSESSEE HAS ALSO PROVIDED DETAILS OF THE COURSES BEING RUN BY IT, ALONG WITH THE FEE STRUCTU RE IN RESPECT OF EACH OF THE COURSES, THIS FEES, BY NO STRETCH OF IMAGINATION, COULD BE REGARDED ON THE HIGHER SIDE. HENCE THE ARG UMENT OF THE ITA NO.3087/M/13 A.Y. 2009-10 11 REVENUE AUTHORITIES THAT THE ASSESSEE HAD ACCUMULAT ED HUGE FUNDS, ALSO STANDS DEMOLISHED. 20. ON THE ISSUE OF 'EDUCATIONAL INSTITUTION', WE A RE ALSO BENEFITTED BY THE DECISION OF HONBLE GUJARAT HIGH COURT, BESIDES THE DECISIONS REFERRED TO BY US EARLIER IN THE ORDER, TO COME TO A FAIR CONCLUSION THAT THE ASSESSEE WAS AN EDUCATIONAL ASSOCIATION. THE DECISIONS AS REFERRED 'EARLIER WER E NOT AGITATED AGAINST BY THE DR, WHICH ARE CITY MONTESSORI SCHOOL VS UOL (SUPRA), DIT(E) VS AHMEDABAD MANAGEMENT ASSOCIATION (SUPRA) AND DIT VS SAMUDRA INSTITUTE OF MERITIME ST UDIES TRUST (SUPRA). ALSO PLACING RELIANCE ON THE DECISION OF A HMEDABAD RANA CASTE ASSOCIATION VS CIT, REPORTED IN 82 ITR 7 04, WHEREIN IT WAS HELD, 'IT IS WELL-SETTLED THAT AN OB JECT BENEFICIAL TO A SECTION OF THE PUBLIC IS AN OBJECT OF GENERAL PUBLIC UTILITY. TO SERVE A CHARITABLE PURPOSE IT IS NOT NECESSARY T HAT THE OBJECT SHOULD BE TO BENEFIT THE WHOLE OF MANKIND OR ALL PE RSONS IN A COUNTRY OR STATE. IT IS SUFFICIENT IF THE INTENTION TO BENEFIT A SECTION OF THE PUBLIC AS DISTINGUISHED FROM A SPECI FIED INDIVIDUAL IS PRESENT. THE SECTION OF THE COMMUNITY SOUGHT TO BE BENEFITTED MUST BE SUFFICIENTLY DEFINITE AND IDE NTIFIABLE BY SOME COMMON QUALITY OF A PUBLIC OR IMPERSONAL NATUR E'. THE AR SUBMITTED THAT SINCE THE ASSESSEE WAS GIVING BEN EFIT TO ITA NO.3087/M/13 A.Y. 2009-10 12 PERSONS PERUSING BANKING INDUSTRY, IS NOT ONLY EDUC ATION BUT BY NOT MAKING ANY PROFIT, IT WAS CHARITABLE IN NATURE. 21. SINCE THE INSTITUTE DOES NOT UNDERTAKE ANY OTH ER ACTIVITIES OTHER THAN WHAT IS STATED ABOVE. THE ACTIVITIES AS SEEN ARE EDUCATIONAL IN NATURE, WHICH LEAVES NO APPREHENSION S. IN OUR VIEW THE ACTIVITIES WOULD SQUARELY BE COVERED BY TH E DEFINITION OF 'CHARITABLE PURPOSE', AS DEFINED IN SECTION 2(15 ) OF THE ACT, AS THESE ACTIVITIES ARE MEANT FOR GENERAL PUBLIC UT ILITY, I.E. WHOEVER WANTS TO ADVANCE HIS/HER QUALIFICATIONS IN THE BANKING INDUSTRY. FROM THE ABOVE DETAILS AND DESCRIPTION, W E ARE OF THE OPINION THAT THE ASSESSEE IS A CHARITABLE ORGANIZAT ION AND ELIGIBLE FOR DEDUCTION U/S 11 OF THE ACT. 5.1 THE ACTIVITIES OF THE INSTITUTE FOR THE YEAR UN DER CONSIDERATION ARE THE SAME WHICH HAS BEEN SHOWN AT PAGE 79 OF THE PAPER BOOK. THE COURSES RUN BY THE ASSESSEE ARE ALSO THE SAME WHICH HAVE BEEN SHOWN AT PAGE 80 TO 84 OF THE PAPER BOOK. THEREFORE THE ORDER FOR THE A.Y. OF 2008-09 HAS BEEN PASSED UNDER THE SIMILAR CIRCUM STANCES HENCE THE SAME IS APPLICABLE IN THIS ASSESSMENT YEAR ALSO. N O DISTINGUISHABLE MATERIAL WAS PRODUCED BEFORE US TO WHICH IT CAN BE ASSUMED THAT THE ACTIVITY OF THE INSTITUTE HAS NOW BEING CHANGED. T HE OBJECT AND ACTIVITY OF THE INSTITUTE ARE QUITE SIMILAR WITH TH E ASSESSMENT YEAR OF 2008-09 VIDE WHICH THE ABOVE MENTIONED ORDER HAS BE EN PASSED. WE FOUND NO GROUND TO DEVIATE WITH THE FINDING OF THE ORDER OF THE ITA NO.3087/M/13 A.Y. 2009-10 13 TRIBUNAL MENTIONED ABOVE. THEREFORE, IN THE SAID C IRCUMSTANCES WE ARE OF THE OPINION THAT THE ASSESSEE IS CHARITABLE ORGANIZATION AND ELIGIBLE FOR DEDUCTION U/S.11&12 OF THE ACT. SINCE THE MATTER OF CONTROVERSY HAS BEEN DECIDED BY THE TRIBUNAL IN THE ABOVE MENTIONED CASE THEREFORE, BY HONORING THE ORDER PASSED BY THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE A.Y. 2008-09, WE DECIDE THIS ISSUE IN FAVOUR OF THE ASSESSEE AGAINST THE REVENUE. ISSUE NO.3, 4 AND 5:- 6. IN VIEW OF OUR DECISION ON GROUND NO.2 ABOVE, WH EREBY ASSESSEE HAS BEEN HELD TO BE ELIGIBLE FOR EXEMPTION U/S.11 & 12 OF THE ACT, THE OTHER GROUNDS DO NOT ARISE FOR SEPARATE CO NSIDERATION. THEREFORE, THE MATTER IS SET ASIDE TO THE FILE OF A SSESSING OFFICER TO RECOMPUTED THE TOTAL INCOME AFTER ALLOWING THE BENE FITS OF SECTION 11 AND 12 OF THE ACT. ISSUE NO.6(ADDITIONAL GROUND):- 7. ISSUE NO.6 HAS NOT BEEN PRESSED AT THE TIME OF H EARING AND IS ACCORDINGLY DISMISSED AS NOT PRESSED. 8. ACCORDINGLY, APPEAL OF THE ASSESSEE IS HEREBY PA RTLY ALLOWED. ITA NO.3087/M/13 A.Y. 2009-10 14 ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD JUNE, 2016 SD/- SD/- (G.S.PANNU) (AMARJIT SINGH) # / ACCOUNTANT MEMBER %& # /JUDICIAL MEMBER ' ( MUMBAI; )# DATED : 23 RD JUNE, 2016 MP MP MP MP * + ,%'#- .-(' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. * ( ) / THE CIT(A)- 4. * / CIT 5. -./ &&01 , 01' , ' ( / DR, ITAT, MUMBAI 6. /34 5 / GUARD FILE. * / BY ORDER, - & //TRUE COPY// //$ (DY./ASSTT. REGISTRAR) , ' ( / ITAT, MUMBAI