ACIT v. Delhi Bureau of Text Books

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The Tax Publishers2021 TaxPub(DT) 0042 (Del-Trib) : (2022) 093 ITR (Trib) 0411

INCOME TAX ACT, 1961Q

Section 2(15) Section 11

Activity of assessee contributed to the training and development of knowledge, skill, mind and character of students. Merely because assessee had generated profits out of activity of publishing and selling of School text books, it could not be said that assessee ceased to carry on the activity of education, especially when surplus amount was again ploughed back into main activity of 'education'. Accordingly, assessee was entitled for exemption under section 11.

Charitable trust - Charitable purpose - Education - Activities of developing/prining/publishing and also text books and other teaching material, etc.

Assessee society was registered under section 12A. Also, it was notifed under section 10(23C)(vi) up to assessment year 2002-03. The society was engaged in publication of texts books from Class 1 to VIII of Government Schools, MCD Schools, NDMC Schools and Delhi Cantonment Schools claimed exemption under section 11. AO denied exemption holding that assessee was engaged in the business of publishing and sale/purchase of books which is not covered under 'education' as per definition of 'charitable purpose' under section 2(15). Held: Activity of assessee contributed to the training and development of knowledge, skill, mind and character of students. Merely because assessee had generated profits out of activity of publishing and selling of School text books, it could not be said that assessee ceased to carry on the activity of education, especially when surplus amount was again ploughed back into main activity of 'education'. Accordingly, assessee was entitled for exemption under section 11.

Followed:Sole Trustee (1975) 101 ITR 234 (SC) : 1975 TaxPub(DT) 0344 (SC), Assam Text Book Production & Publication Corporation Limited v. CIT (2009) 319 ITR 317 (SC) : 2009 TaxPub(DT) 2091 (SC), CIT v. Rajasthan State Text Book Board (2000) 244 CTR 667 (Raj) : 2000 TaxPub(DT) 783 (Raj-HC), Secondary Board of Education v. ITO (1972) 86 ITR 408 (Ori-HC) : 1972 TaxPub(DT) 0379 (Ori-HC), Institution of Chartered Accountants of India v. Director General of Income Tax (Exemptions) (2012) 347 ITR 99 (Del) : 2012 TaxPub(DT) 253 (Del-HC), CIT v. M.P. Rajya Pathya Pustak Nigam (2009) 226 CTR 497 (MP) : 2009 TaxPub(DT) 1612 (MP-HC) and Institute of Charted Accountants of India & Anr. v. Director General of Income Tax (Exemptions) (2012) 362 ITR 436 (Del-HC) : 2012 TaxPub(DT) 1818 (Del-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

IN THE ITAT, DELHI BENCH