Tolins Educational trust,, Ernakulam v. CIT, Cochin

ITA 246/COCH/2012 | misc
Pronouncement Date: 31-07-2013 | Result: Dismissed

Appeal Details

RSA Number 24621914 RSA 2012
Assessee PAN AACTT1384J
Bench Cochin
Appeal Number ITA 246/COCH/2012
Duration Of Justice 10 month(s) 2 day(s)
Appellant Tolins Educational trust,, Ernakulam
Respondent CIT, Cochin
Appeal Type Income Tax Appeal
Pronouncement Date 31-07-2013
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 31-07-2013
Date Of Final Hearing 11-07-2013
Next Hearing Date 11-07-2013
Assessment Year misc
Appeal Filed On 28-09-2012
Judgment Text
1 ITA NO. 246/COCH/2012 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKA RAN(AM) I.T.A NO. 246/COCH/2012 TOLINS EDUCATIONAL TRUST VS C.I.T. KOCHI VII/578 KALADY P.O. ERNAKULAM 683 574 PAN : AACTT1384J (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MOHAN PULIKKAL RESPONDENT BY : SHRI M ANIL KUMAR C.I.T. SMT. S VIJAYAPRABHA DATE OF HEARING : 11-07-2013 DATE OF PRONOUNCEMENT : 31-07-2013 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF ADMINISTRATIVE COMMISSIONER KOCHI DATED 31-07-2012 REJECTING THE APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT. 2. SHRI MOHAN PULIKKAL THE LD.COUNSEL FOR THE ASSE SSEE SUBMITTED THAT THE ADMINISTRATIVE COMMISSIONER HAS NOT PASSED THE ORDER WITHIN SIX MONTHS FROM THE DATE OF APPLICATION. THEREFORE TH ERE WAS A DEEMED REGISTRATION. TO VERIFY THIS ALLEGATION WE CALLED FOR THE DETAILS FROM THE 2 ITA NO. 246/COCH/2012 OFFICE OF THE COMMISSIONER OF INCOME-TAX. THE COMM ISSIONER OF INCOME- TAX CLARIFIED THAT THE APPLICATION WAS IN FACT FI LED ON 27-01-2012 AND NOT ON 24-10-2012 AND ORDER WAS PASSED ON 31-07-2012. SIN CE THE ORDER WAS PASSED ON 31-07-2012 THE LD.COUNSEL FOR THE ASSESS EE SUBMITTED THAT NOW HE WILL NOT PRESS THIS GROUND OF APPEAL. 3. REFERRING TO THE MERIT OF THE APPLICATION FOR RE GISTRATION THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSE SSEE IS RUNNING A PRE- SCHOOL FOR PRE KG STUDENTS IN AN AIR CONDITIONED BU ILDING. THE ADMINISTRATIVE COMMISSIONER REJECTED THE APPLICATIO N OF THE ASSESSEE ON THE GROUND THAT THE SCHOOL IS MADE FOR THE BENEFIT OF THE CHILDREN BELONGING TO WELL-TO-DO FAMILIES. ACCORDING TO THE LD.COUNSE L MERELY BECAUSE THE CLASS ROOMS ARE CONDUCTED IN AN AIR CONDITIONED ROO M WILL NOT LOOSE ITS CHARACTER AS EDUCATIONAL INSTITUTION. THEREFORE T HE ASSESSEE IS ENTITLED FOR REGISTRATION U/S 12AA OF THE ACT. ON A QUERY FROM THE BENCH WHETHER THE ASSESSEE GOT THE APPROVAL OF THE STATE EDUCATION DE PARTMENT FOR RUNNING THE SCHOOL THE LD.COUNSEL FOR THE ASSESEE ON INSTR UCTION FROM THE ASSESSEE CLARIFIED THAT THE ASSESSEE HAS NOT APPLIED FOR REC OGNITION / APPROVAL NOR APPROVAL WAS RECEIVED FROM THE STATE GOVERNMENT SO FAR. THE LD.COUNSEL FURTHER CLARIFIED THAT FOR CONDUCTING PRE KG NO APP ROVAL IS REQUIRED FROM THE STATE GOVERNMENT. 3 ITA NO. 246/COCH/2012 4. WE HEARD SHRI M ANIL KUMAR THE LD.DR ALSO. ACC ORDING TO THE LD.DR THE ASSESEE IS NOT RUNNING ANY FORMAL SCHOOL AND NO APPROVAL WAS OBTAINED FROM THE EDUCATION DEPARTMENT. ACCORDING TO THE LD.DR ONLY FORMAL SCHOOLING WILL BE CONSIDERED AS EDUCATIONAL INSTITUTION. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSE SSEE IS CLAIMING REGISTRATION U/S 12AA OF THE ACT AS EDUCATIONAL INS TITUTION. THIS TRIBUNAL HAD AN OCCASION TO CONSIDER AN IDENTICAL ISSUE IN T HE CASE OF M STAR CHARITABLE SOCIETY VS CIT (2013) 142 ITD 153 (COCHI N). THIS TRIBUNAL FOUND THAT EDUCATION MEANS A FORMAL SCHOOLING WH ICH RESULTED IN CONFERMENT OF A DEGREE OR DIPLOMA OR AWARD BY GOVER NMENT OR GOVERNMENTAL AGENCY. MERE TRAINING CENTRE OR TUITI ON CENTRE CANNOT BE CONSIDERED TO BE AN EDUCATIONAL INSTITUTION AS CONT EMPLATED IN SECTION 2(15) OF THE ACT. IN THIS CASE THE ASSESSEE IS RU NNING ONLY PLAY SCHOOL FOR PRE KG STUDENTS. NO APPROVAL WAS OBTAINED FROM THE STATE GOVERNMENT FOR RUNNING REGULAR SCHOOL. IT IS ALSO AN ADMITTED FACT THAT THE ASSESSEE HAS NOT APPLIED FOR RECOGNITION OR APPROVAL FROM TH E STATE GOVERNMENT FOR RUNNING A REGULAR SCHOOL. IN THOSE CIRCUMSTANCES RUNNING A PLAY SCHOOL FOR PRE KG STUDENTS MAY AT THE BEST BE CALLED AS RUNNING A SOPHISTICATED CHILD CARE CENTRE IN AN AIR CONDITIONED ROOM. RUNN ING A CHILD CARE CENTRE OR PLAY SCHOOL WOULD NOT COME WITHIN THE PURVIEW OF EDUCATION AS 4 ITA NO. 246/COCH/2012 CONTEMPLATED IN SECTION 2(15) OF THE ACT. AS OBSER VED BY THE APEX COURT IN SOLE TRUSTEE LOKA SHIKSHANA TRUST VS CIT (1975) 101 ITR 234 (SC) WHAT EDUCATION CONNOTES IN SECTION 2(15) IS THE PRO CESSING OF TRAINING AND DEVELOPING THE KNOWLEDGE SKILL MIND AND CHARACTER OF STUDENTS BY NORMAL SCHOOLING. SINCE ADMITTEDLY NORMAL SCHOOL WAS NOT RUN BY THE ASSESSEE THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ASSESSEE IS NOT ENTITLED FOR REGISTRATION U/S 12AA OF THE ACT. ACCORDINGLY BY FOLLOWING ITS EARLIER ORDER IN M STAR CHARITABLE SOCIETY (SUPRA) AND FOR THE REASONS STATED THEREIN THE ORDER OF THE ADMINISTRATIVE COMMISSION ER IS CONFIRMED. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 31 ST JULY 2013. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN DT : 31 ST JULY 2013 PK/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR INCOME-TAX APPELLATE TRIBUNAL COCHIN BENCH