Society imparting Training to Students to get Placements eligible for Income Tax Exemption: ITAT [Read Order]

The Delhi bench of the Income Tax Appellate Tribunal ( ITAT ) has held that a society engaged in providing education/ skill development training to the students to enable them to get placement is eligible for deduction under section 10(23C)(iiiab) of the Income Tax Act.

Assessee society is engaged in conducting various short duration training programs of computer training, Doner, CAD/CAM/D.L.G. Tech, DST, Mech. Web Designing, audit CAD, Linus & C++, training in Computer Accounting System (TCAS), Tally 9, Leg guards & Gloves (STST) Hand Gloves Manufacturing, Shuttle Cock Manufacturing, cricket bat manufacturing, carom board manufacturing, Leg guard manufacturing, batting gloves manufacturing, football manufacturing, Cricket ball manufacturing (Jalandhar) and leather workshop, training in R/P workshop, wood workshop etc.

The Assessing Officer denied the exemption under section 10(23C)(iiib) of the Income-tax Act, 1961 to the assessee on the ground that the assessee society is not running an institution to provide systematic education.

The Tribunal noted that the assessee society, substantially financed by the Government of India, is engaged only in imparting research based education/ skill training to the students in manufacturing of sports goods and leisure equipments without any profit motive, to enable them to get placement falls within the definition of education u/s 2(15) of the Act, hence entitled for exemption under section 10(23C)(iiiab) of the Act.