Delhi bench of Income Tax Appellate Tribunal (ITAT) proclaimed in its recent order that society imparting education to poor women is eligible for tax exemption and it doesn’t matter whether the courses are recognized or not by any board of education.
Assessee involved in the present issue has registered under Societies Registration Act to fulfill the basic aims and objects of the society and has rooted in the Christian faith and endeavour to promote the full development of women/girls irrespective of race, culture and creed. During the assessment year the assessee declared a nil income in its return of income.
In response to the notice under section 143(2) of the Income Tax Act 1961 the assessee filed all the necessary papers and documents along with bills and vouchers with respect to the expenditure incurred and evidence of having earned income from different heads as is evident from assessment order itself.
During the period of assessment proceedings the Assessing Officer (AO) noted that the assessee did not include income of women training institute and accordingly he invoked the provision to section 2(15) of the Act.
On appeal before CIT (A) , while considering the factual matrix they directed the AO to to allow exemption on the earning from unrecognized courses as well, as being included in the definition of ‘education’. Aggrieved by the revenue was in appeal before the tribunal.
After considering both the sides tribunal bench comprising of Judicial Member Joginder Singh and Accountant Member N. K. Saini held that the unrecognized courses are also comes within the meaning of education or in other words, it can be said that the charitable purposes includes relief to the poor, education (yoga), medical relief, preservation of environment and preservation of monuments or placed or objects of artistic or historic interest and the advancement of any other objection of general public utility.
While analyzing the material facts and records it is also clear that the assessee society registered under society registration act with an aim to fulfill the basic objects of the society. And while admitting all these facts it can be concluded that the assessee society would be eligible to get tax exemption even if the courses are not recognized by any board of education.
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