ITAT grants Tax Exemption to Trust carrying out Study Programmes for University’s registered Students [Read Order]

The Income Tax Appellate Tribunal (ITAT), Pune bench consisting of S S Godara, Judicial Member and Dr Dipak P Ripote, Accountant Member granted tax exemption to trust carrying out study programmes for university’s registered students.

In M/s. Chanakya Mandal Pariwar(assessee) detailed paper book running into 368 pages, suggests that it has been running various study centres as per its agreement with Yashwantrao Chavhan Maharashtra Open University, Nashik as per the duly approved programmes. The said agreement suggests that the assessee is supposed to offer and carry out various study programmes for the university’s registered students by way of correspondence classes, evaluation and as evolving course material as well other allied activities.

The Counsel for the Revenue, S P Walimbe contended that the CIT(A) erred in treating the activities of the assessee trust as "education" in terms of Section 2(15) of the Act by ignoring the fact that the assessee trust is mainly conducting coaching classes for preparation for UPSC and MPSC Examinations etc. by charging huge amount of fees and therefore, the same cannot be considered in the nature of "Education" to enable the assessee for exemption under Section 11 and 12 of the ITAct.

The Counsel also contended that theCIT(A) erred in not appreciating the fact that conducting coaching classes for preparation for competitive examinations by charging huge amount of fees cannot be considered as charitable activity within the meaning of Section 2(15) of the Act and also in allowing the benefit of Section 11 of IT Act.

The Tribunal observed that “we are of the opinion that the CIT(A) has rightly held the assessee is eligible for the impugned exemption since it is carrying out education activities only. We draw support from Lok Shikshan Trust Saurashtra Education Foundation decisions (supra) that such educational activities resulting in university degrees in various courses indeed make it eligible for Section 11 exemption.”

To Read the full text of the Order CLICK HERE

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