IMC ITI SOHANA, Gurgaon V. CIT(Exemption), Chandigarh

ITA 4450/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 9428 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: misc
• Appeal Filed On: 14-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12; 11; 12A

Judgement Text

Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI Before Shri C. N. Prasad, Judicial Member Dr. B. R. R. Kumar, Accountant Member ITA No. 4450/Del/2019 IMC ITI Sohana, Alwar Road, By pass Sohana, Gurgaon Vs. CIT(Exemption), Chandigarh (APPELLANT) (RESPONDENT) PAN No. AAAAI2807A Assessee by : Shri R. K. Gaur, CA Revenue by : Sri Rajesh Kumar, CIT DR Date of Hearing: 05/09/2022 Date of Pronouncement: 07.09.2022 ORDER Per Dr. B. R. R. Kumar, Accountant Member: 1. The present appeal has been filed by the Assessee against the order of the ld. CIT(E), Chandigarh dated 13.03.2019. 2. The brief facts of the case is that an application in form NO. 10A was filed by the applicant on 06.09.2018 seeking registration u/s 12A of the Income Tax Act, 1961. The application reveals that the society is an ongoing entity that has been in operation since 19.12.2008. The stated aims and objects of the society are to manage the affairs of the ITI Sohna according to terms and conditions set out in a Memorandum of Agreement to be signed among the Central Government, State Government and Industry partner. The representative of the industry partner shall Page | 2 sign this memorandum of agreement on behalf of the society also as it chairman to assess emerging skill requirement in the region and suggest changes in the training courses being run in ITI. In the present case applicant society has been established with the aim of up gradation of the Government Industrial Training Institute (Women). The applicant society has contended that its activities fall under the limb ‘education’ of section 2(15) of the Act. It is pertinent to mention here that it is an entity which has received large scale of grants from Government as reimbursement of expenses or fee for the activities undertaken by them in the field of skill development/ vocational training. In that light, the applicant has claimed that its activities fall under ‘education’. 3. However, the ld CIT(E) held that the sense in which the word “education” has been used in section 2(15) as interpreted by the Apex Court in the case of Sole trustee, Loka Sikshan Sansthan (101 ITR 234) is systematic instruction, schooling or training given to the young is 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 used in that wide and extended sense, according to which every acquisition of further knowledge constitutes education. It was held that to that extent, the contention of the applicant of pursuing ‘education’ limb of section 2(15) is not acceptable. The said receipts don’t partake the character of voluntary donations and neither are income from property vested in the trust for charitable purposes as envisaged in section 11 & 12 of the Act. To that extent it was held that there is no income for which the exemption is being sought are not covered by Section 11 &12. Moreover, Page | 3 the applicant failed to produce original Registration Certificate of Society and its MoA/Bye-Laws which was specifically asked for to verify the authenticity of documents. Apart from it, the books of accounts are also not produced in the absence of which the claims of applicant could not be ascertained. Holding this the ld CIT(E) rejected the application of the assessee. 4. Before us it was argued that the ld CIT(E) could not appreciate the object of the society owing to non attendance of the Assessee before the ld CIT(E) and prayed given an opportunity of being heard of the matter would be appropriately brief the matter before the ld CIT(E). Since, no impediment would be caused to the revenue, we hereby restore the matter back to the file of the ld CIT(E) to examine the issue afresh. 5. In the result, the appeal is allowed for statistical purpose. Order Pronounced in the Open Court on 07/09/2022. Sd/- Sd/- (C. N. Prasad) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 07/09/2022 *Ajay Kumar Keot, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR