The Allahabad bench of Income Tax Appellate Tribunal (ITAT) has held that the Hindi Sahitya Sammelan is eligible for Income tax exemption under section10 (23C) (vi) the Income Tax Act.
The AssesseeHindi Sahitya Sammelan filed appeal before the Income Tax Appellate tribunal Allahabad bench against the order passed by the chief commissioner of income tax for assessment year’, 2000-01 to 2003-04, 2006-07 and 2007-08, u/s 10(23C) (vi) ofIncome-Tax Act, 1961 holding that the assesseedoes not qualify to be accorded recognition as a charitable institution for granting exemption u/s 10(23C) (vi) of the 1961 Act.
The AR Shri R.S. Agrawal for the assessee contended that “assessee is providing education to students by conducting various courses named Prathama, Madhyama and Uttama .These courses are duly recognized by various Universities and Boards, wherein its degrees are recognize.The assessee was earlier getting exemption under Section 10(22) of the 1961 Act, and both Section 10(22) and Section 10(23C) (vi) of the Act are analogous”.
Furthermore the AR contended that “assessee is imparting education in Hindi. And in particular to various clauses of Sections 6 of The Hindi Sahitya Sammelan Act, 1962 to submit that the assessee is engaged in imparting education. WhereinUttama Certificate awarded by the assessee is recognized by Punjabi University, Patiala”.
TheDR Shri Ramendra Kumar Vishwakarma for Chief Commissioner of Income Tax contended that“theassessee is a voluntary association for promotion of Hindi and is not recognized by any Board /University. There is no element of normal schooling in the activities of the assessee and assessee has not set up any school or college for imparting education. It merely conducts exams and based on its own syllabus/courses and awards degrees named as Prathama, Madhayama, Uttama and Visharad.
Moreover the DRobserved that “Education for the purposes of section 2(15) of the 1961 Act, has a very specific meaning and is not used in a wide and extended sense. Education should normally be considered as a process, training and development of knowledge, mind and character of students in normal schooling. The aims, objects and the activities of the assessee society could not be held as education as it was not a process of training and development of the students in normal schooling.”
After considering the contention of the both side the division bench of Tribunal compraising. Shri Vijay Pal Rao (Judicial Member) and Shri RamitKochar (Accountant Member) allowed the appeals filed by assessee for the assessment year(s) 2000-01 to 2003-04, 2006-07 and 2007-08 respectively.
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