The Income Tax Appellate Tribunal (ITAT), Pune bench, S S Godara, Judicial Member, and Dr Dipak P Ripote, Accountant Member gave tax exemption to trust who does study programs for university’s registered students.
The books of Chanakya Mandal Pariwar(assessee) which comprises 368 pages recommend that they are running several study centres according to its agreement with Yashwantrao Chavhan Maharashtra Open University, Nashik as per the duly approved programs. In the agreement, the taxpayer is considered to offer and perform various study programs for the university registered students through the method of correspondence classes, evaluation, and evolving course material along with other allied activities.
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The Counsel for the Revenue, S P Walimbe claimed that the CIT(A) makes mistakes in treating the moves of the taxpayer’s trust as “education” towards Section 2(15) of the Act by disregarding the point that the taxpayer’s trust is mainly running the coaching classes for preparation for UPSC and MPSC Examinations and others through charging huge amount of fees and hence, that cannot be regarded in the nature of “Education” to enable the taxpayer for exemption under Section 11 and 12 of the IT Act.
The department specified that CIT(A) is making mistakes in not acknowledging the point which conducts the coaching classes for the preparation for competitive exams by imposing higher fees that could not be acknowledged as a charitable activity through the definition of Section 2(15) of the Act and also in permitting the advantage of Section 11 of IT Act.
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Tribunal notices that we have the thought for the CIT(A) ruled that the taxpayer would be qualified for the impugned exemption as it has taken out the activities regarding education. We seek assistance from Shikshan Trust Saurashtra Education Foundation’s decisions (supra) that these educational activities resulting in university degrees in multiple courses certainly make it eligible for Section 11 exemption.
