| The Tax Publishers2022 TaxPub(DT) 4504 (Pune-Trib) INCOME TAX ACT,1961
Sections 11 & 2(15)
Conducting various coaching services for students preparing for civil services and other competitive exams amounted to carrying out educational activities, however, assessee was eligible for section 11 exemption only for those courses which were run by the university strictly in tune with the UGC's guidelines.
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Charitable trust - Exemption under section 11 - Educational activities under section 2(15) - Assessee conducting various coaching services for students preparing for civil services and other competitive examinations
Assessee had been runing various study centres as per its agreement with Yashwantrao Chavhan Maharashtra Open University, Nashik as per the duly approved programmes. AO rejected assessee's claim of exemption under section 11 alleging that assessee trust was mainly conducting coaching classes for preparation for UPSC and MPSC Examinations, etc., by charging huge amount of fees and, therefore, same could not be considered in the nature of 'Education' to enable the assessee for exemption under sections 11 and 12. Held: In terms of concerned agreement, assessee was supposed to offer and carry out various study programmes for university's registered students by way of correspondence classes, evaluation and as evolving course material as well other allied activities. That being the case, assessee was eligible for the impugned exemption since it was carrying out education activities only. However, assessee was eligible for section 11 exemption only for those courses which were run by the university strictly in tune with the UGC's guidelines. AO was directed to factually verify all the evidence(s) afresh.
Relied:Sole Trustee, Lok Shikshan Trust v. CIT (1975) 1010 ITR 234 (SC) : 1975 TaxPub(DT) 344 (SC).
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2012-13
IN THE ITAT PUNE BENCH
S.S. GODARA, J.M. & DIPAK P. RIPOTE, A.M.
ITO(E) v. Chanakya Mandal Pariwar
ITA No. 835/PUN/2017, CO No. 06/PUN/2020
1 July, 2022
Assessee by : Hari Krishan
Revenue by : S.P. Walimbe
S.S. Godara, J.M.
This Revenues appeal ITA No. 835/Pun/2017 with assessees cross objection CO No. 06/Pun/2020 for assessment year 2012-13 arise from the Commissioner (Appeals)-10, Punes Order dated 30-1-2017 passed in case No. PN/CIT(A)10/ITO Exmp Wd 1/44,45,46,47/15-16, involving proceedings under section 143(3) read with section 174 of the Income Tax Act, 1961 (in short the Act).
Heard both parties and case files perused.
2. The Revenue raises the following substantial grounds in its appeal ITA No. 835/Pun/2017 l:
1. On the facts and circumstances of the case and in law, the learned Commissioner (Appeals) (hereinafter Commissioner (Appeals)) erred in holding that the term 'education' occurring in section 2(15) of the Income Tax Act, 1962 has been used in wider sense and in its widest amplitude and thereby directing the assessing officer to treat the activity as 'education' in terms of section 2(15) of the Income Tax Act.
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