INCOME TAX ACT, 1961

Section 11

Charitable trust - Exemption under section 11 - Allegation that assessee was running dance classes which was purely commercial in nature -

Assessee-trust was engaged in imparting training in performing arts like various dance forms including traditional “Kuchipudi and sought registration under section 12A. CIT(E) after examining the details filed by assessee observed that the total students admitted in the assessee-trust were 42 students, out of which 8 are trained without any fee, 19 students are charged @ 2,000 p.m., 7 students are charged @ Rs. 1,500 p.m. and 8 students are charged @ 1,200 p.m. Therefore, there was no charitable activity in conducting dance courses by collecting fees and accordingly 12A registration was denied. According to CIT(E), assessee was running dance classes, which was purely commercial in nature, therefore, he denied 80G approval also. Held: During the course of hearing, assessee submitted that Kuchipudi Art Foundation was already enjoying 12A registration. Educational institutions need not be affiliated to Universities or Boards and it is to be seen that the object clause of the trust was for educational purposes and it has carried out a full-fledged teaching of the relevant course. In the case of CIT v Academy of General Education [(1984) 150 ITR 135 (Kar.) : 1984 TaxPub(DT) 0731 (Karn-HC)], wherein it was held that 'an assessee need not necessarily be a school or a college where education is imparted so as to claim exemption under section 10(22). Thus, assessee was entitled for registration under section 12A.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

SUBSCRIBE FOR FULL CONTENT