Win Publication Trust, Cochin v. CIT, Cochin

ITA 298/COCH/2013 | misc
Pronouncement Date: 25-10-2013 | Result: Dismissed

Appeal Details

RSA Number 29821914 RSA 2013
Assessee PAN AAATW2273M
Bench Cochin
Appeal Number ITA 298/COCH/2013
Duration Of Justice 5 month(s) 11 day(s)
Appellant Win Publication Trust, Cochin
Respondent CIT, Cochin
Appeal Type Income Tax Appeal
Pronouncement Date 25-10-2013
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 25-10-2013
Date Of Final Hearing 22-10-2013
Next Hearing Date 22-10-2013
Assessment Year misc
Appeal Filed On 14-05-2013
Judgment Text
1 ITA NO.298/COCH/2013 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. 298/COCH/2013 (ASSESSMENT YEAR 2012-13) WIN PUBLICATION TRUST H.NO.44/2326 VS C.I.T. KOC HI FRIENDS LANE-3 DESABHIMANI ROAD KALOOR KOCHI-17 REPRESENTED BY ITS TRUSTEE SWAPNA ANNA ALEXANDER PAN : AAATW2273M (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.K. JOSEPH RESPONDENT BY : SHRI M ANIL KUMAR C.I.T. SMT. LATHA V KUMAR DATE OF HEARING : 22-10-2013 DATE OF PRONOUNCEMENT : 25-10-2013 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE ADMINISTRATIVE COMMISSIONER REFUSING TO GRANT REGIS TRATION U/S 12AA OF THE ACT. 2. SHRI P.K. JOSEPH THE LD.REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE TRUST WAS ESTABLISHED ON 21-06-20 10 FOR THE PURPOSE OF EDUCATING THE TRIBAL PEOPLE BY UNDERSTANDING THEIR LIFESTYLE LANGUAGE ETC. 2 ITA NO.298/COCH/2013 ACCORDING TO THE LD.REPRESENTATIVE THE TRUSTEES WO ULD GO TO THE REMOTE AREAS WHERE TRIBAL PEOPLE LIVES AND UNDERSTAND THEI R LOCAL LANGUAGE TRY TO CREATE SCRIPTS OF THEIR LANGUAGE AND THEN TRANSLATE THE BIBLE AND OTHER RELIGIOUS BOOK IN THEIR LANGUAGE TO MAKE THEM LITER ATE SO THAT THEY CAN LEAD A BETTER LIFESTYLE IN THE SOCIETY. ACCORDING TO TH E LD.REPRESENTATIVE SOURCE OF INCOME FOR THE SOCIETY IS MAINLY DONATION FROM G ENERAL PUBLIC. AFTER GOING THROUGH THE OBJECT OF THE TRUST ON A QUERY F ROM THE BENCH THAT THE OBJECT OF THE TRUST IS MAINLY TO PROMOTE CHRISTIAN RELIGION AND WHY THE ASSESSEE IS CLAIMING THE TRUST AS AN EDUCATIONAL TR UST INSTEAD OF CLAIMING REGISTRATION FOR RELIGIOUS TRUST THE LD.REPRESENTA TIVE SUBMITTED THAT IF IT IS A RELIGIOUS TRUST THE ASSESSEE MAY NOT BE ENTITLED F OR 80G RECOGNITION IN RESPECT OF DONATION RECEIVED BY THEM. THEREFORE T HE ASSESSEE IS CLAIMING FOR REGISTRATION AS AN EDUCATIONAL TRUST. 3. ON THE CONTRARY SHRI M ANIL KUMAR THE LD.DR SU BMITTED THAT THE MAIN OBJECT OF THE TRUST IS TO PROPAGATE CHRISTIAN RELIGION AMONG THE PEOPLE; THEREFORE IT IS A RELIGIOUS TRUST. ACCORD ING TO THE LD.REPRESENTATIVE MERE PRINTING AND TRANSLATING OF BIBLE OR ANY OTHER BOOK CANNOT BE CONSIDERED TO BE AN EDUCATIONAL ACTIVITY. ACCORDIN G TO THE LD.REPRESENTATIVE ACQUIRING OR IMPARTING KNOWLEDGE IN ANY WAY CANNOT BE CONSTRUED AS EDUCATION. EDUCATION SHOULD BE BY A N ORMAL SCHOOLING. 3 ITA NO.298/COCH/2013 THEREFORE MERE TRANSLATION AND PRINTING OF BIBLE I N THE TRIBAL LANGUAGE CANNOT BE CONSIDERED TO BE EDUCATION. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTED LY THE ASSESSEE IS CLAIMING THE TRUST AS EDUCATIONAL TRUST. THE APEX COURT IN THE CASE OF SOLE TRUSTEE LOKA SHIKSHANA TRUST VS COMMISSIONER OF IN COME-TAX (1975) 101 ITR 234 (SC) HAD AN OCCASION TO CONSIDER THIS ISSUE AND FOUND THAT EDUCATION SHOULD BE THROUGH A FORMAL SCHOOLING AND ALL KINDS OF ACQUISITION OF KNOWLEDGE CANNOT BE CONSIDERED TO BE EDUCATION W ITHIN THE MEANING OF SECTION 2(15) OF THE ACT. IN FACT THIS TRIBUNAL IN THE CASE OF M STAR CHARITABLE TRUST IN ITA NO.605/COCH/2011 ORDER DATE D 14-12-2012 HAS CONSIDERED AN IDENTICAL ISSUE AND HELD AS FOLLOWS: 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTEDLY THE TAXPAYER IS RUNNING COACHING CLASSES. THE TAXP AYER IS NOT DOING ANY OTHER ACTIVITY. THE QUESTION ARISES FOR CONSIDERATION IS WHETHER CONDUCTING COACHING CLASSES FOR THE STUD ENTS WOULD FALL WITHIN THE MEANING OF EDUCATION AS PROVIDED IN SECTION 2(15) OF THE ACT. THE APEX COURT HAD AN OCCASION T O CONSIDER 4 ITA NO.298/COCH/2013 THE PROVISIONS OF SECTION 2(15) OF THE ACT IN SOLE TRUSTEE LOKA SHIKSHANA TRUST VS COMMISSIONER OF INCOME-TAX (1975 ) 101 ITR 234 (SC). AFTER CONSIDERING THE PROVISIONS OF SECT IONS 2(15) OF THE ACT THE APEX COURT FOUND THAT ALL KINDS OF ACQ UIRING KNOWLEDGE WILL NOT COME WITHIN THE MEANING OF EDUC ATION. WHAT EDUCATION. CONNOTES IN SECTION 2(15) IS THE PROCESSING OF TRAINING AND DEVELOPING THE KNOWLEDGE SKILL MI ND AND CHARACTER OF STUDENTS BY NORMAL SCHOOLING. IN FACT THE APEX COURT HAS OBSERVED AS FOLLOWS AT PAGE 241 OF THE IT R: THE SENSE IN WHICH THE WORD EDUCATION HAS BEEN USED IN SECTION 2(15) IS THE SYSTEMATIC INSTRUCTION SCH OOLING OR TRAINING GIVEN TO THE YOUNG IS PREPARATION FOR THE WORK OF LIFE. IT ALSO CONNOTES THE WHOLE COURSE OF SCHOLASTIC INS TRUCTION WHICH A PERSON HAS RECEIVED. THE WORD EDUCATION HAS NOT BEEN USED IN THAT WIDE AND EXTENDED SENSE ACCORDIN G TO WHICH EVERY ACQUISITION OF FURTHER KNOWLEDGE CONSTITUTES EDUCATION. ACCORDING TO THIS WIDE AND EXTENDED SENSE TRAVELLI NG IS EDUCATION BECAUSE AS A TRAVELLING YOU ACQUIRE FRES H KNOWLEDGE. LIKEWISE IF YOU READ NEWSPAPERS AND MA GAZINES SEE PICTURES VISIT ART GALLERIES MUSEUMS AND ZOOS YOU THEREBY ADD TO YOUR KNOWLEDGE. AGAIN WHEN YOU GROW UP AND HAVE DEALINGS WITH OTHER PEOPLE SOME OF WHOM ARE NOT ST RAIGHT YOU LEARN BY EXPERIENCE AND THUS ADD TO YOUR KNOWLEDGE OF THE WAYS OF THE WORLD. IF YOU ARE NOT CAREFUL YOUR WA LLET IS LIABLE TO 5 ITA NO.298/COCH/2013 BE STOLEN OR YOU ARE LIABLE TO BE CHEATED BY SOME U NSCRUPULOUS PERSON. THE THIEF WHO REMOVES YOUR WALLET AND THE SWINDLER WHO CHEATS YOU TEACH YOU A LESSON AND IN THE PROCES S MAKE YOU WISER THOUGH POORER. IF YOU VISIT A NIGHT CLUB YO U GET ACQUAINTED WITH AND ADD TO YOUR KNOWLEDGE ABOUT SOM E OF THE NOT MUCH REVEALED REALITIES AND MYSTERIES OF LIFE. ALL THIS IN A WAY IS EDUCATION IN THE GREAT SCHOOL OF LIFE. BUT THAT IS NOT THE SENSE IN WHICH THE WORD EDUCATION IS USED IN CLAU SE (15) OF SECTION 2. WHAT EDUCATION CONNOTES IN THAT CLAUSE IS THE PROCESS OF TRAINING AND DEVELOPING THE KNOWLEDGE S KILL MIND AND CHARACTER OF STUDENTS BY NORMAL SCHOOLING. 5. FROM THE ABOVE JUDGMENT OF THE APEX COURT IT WOU LD BE ABUNDANTLY CLEAR THAT THERE SHOULD BE A SYSTEMATIC INSTRUCTION TO THE STUDENTS BY WAY OF NORMAL SCHOOLING. MERE C OACHING CLASSES MAY PROVIDE SOME KIND OF KNOWLEDGE TO THE S TUDENTS. BUT THAT KIND OF ACQUISITION OF KNOWLEDGE THROUGH C OACHING CLASSES CANNOT FALL WITHIN THE MEANING OF EDUCATIO N AS PROVIDED IN SECTION 2(15) OF THE ACT. AS THE APEX COURT OBSERVED ONE MAY ACQUIRE KNOWLEDGE IN THE COURSE O F TRAVELLING; DURING THE COURSE OF READING NEWSPAPER; ETC. BUT THAT KIND OF KNOWLEDGE CANNOT FALL WITHIN THE TERM EDUCATION AS PROVIDED IN SECTION 2(15) OF THE ACT. THERE SHO ULD BE A NORMAL SCHOOLING BY WAY OF REGULAR AND SYSTEMATIC I NSTRUCTION. 6 ITA NO.298/COCH/2013 7. THE PATNA HIGH COURT IN THE CASE OF BIHAR INSTIT UTE OF MINING AND MINE SURVEYING VS C.I.T. (1994) 208 ITR 608 (PAT) HELD THAT MERE CONDUCTING OF CLASSES FOR OPEN UNIVE RSITY / DISTANCE EDUCATION CANNOT BE CONSTRUED AS CHARITABL E ACTIVITY WITHIN THE MEANING OF SECTION 2(15) OF THE ACT. TH E PATNA HIGH COURT AFTER CONSIDERING THE JUDGMENT OF THE APEX C OURT IN COMMISSIONER OF INCOME-TAX VS ANDHRA CHAMBER OF COM MERCE (1965) 55 ITR 722 (SC) AND IN THE CASE OF COMMISSIO NER OF INCOME-TAX VS SOLE TRUSTEE LOKA SHIKSHANA TRUST (1 970) 77 ITR 61 (MYS) HAS OBSERVED AS FOLLOWS AT PAGE 615 OF THE ITR: IT IS TRUE THAT BY REASON OF THE FINANCE ACT 198 3 THE QUESTION AS TO WHETHER ANY CHARITABLE INSTITUTION I S BEING RUN WITH A PROFIT MOTIVE OR NOT HAS LOST ITS RELEVA NT. HOWEVER THE WORD CHARITABLE PREFIXING THE WORD INSTITUTION HAS TO BE GIVEN ITS FULL EFFECT. IT APPEARS THAT ONE OF THE PRINCIPAL PROJECTS OF THE PETITIONE RS INSTITUTION HAS THE OBJECT OF COACHING AND PREPARIN G THE STUDENTS FOR APPEARING IN VARIOUS EXAMINATIONS CONDUCTED BY THE BOARD OF MINING EXAMINATION AND / OR MI(1) SECTION (A)(B) AND THE SAID COACHING OF STUDE NTS IN AN INSTITUTE IS NOT IN OUR OPINION AN IMPARTING O F EDUCATION WHICH CAN BE SAID TO BE A PROCESS OF TRAI NING AND DEVELOPING KNOWLEDGE AND CHARACTER OF STUDENTS BY NORMAL SCHOOLING. A COACHING INSTITUTE CANNOT BE S AID TO 7 ITA NO.298/COCH/2013 BE AN INSTITUTION WHERE NORMAL SCHOOLING IS DONE. THE DEFINITION OF CHARITABLE PURPOSE IS INCLUSIVE AND NOT EXHAUSTIVE. 8. IT IS FURTHER SEEN THAT THE GUJARAT HIGH COURT A LSO HAD AN OCCASION TO CONSIDER IDENTICAL ISSUE IN THE CASE OF SAURASHTRA EDUCATION FOUNDATION VS C.I.T. (2005) 273 ITR 139 ( GUJ). THE GUJARAT HIGH COURT FOUND THAT ALL KINDS OF EDUCATIO N WOULD NOT FALL WITHIN THE MEANING OF SECTION 2(15) OF THE ACT . THE TRAINING INSTRUCTION ETC. WOULD RESULT IN GRANT O F A DIPLOMA OR DEGREE BY A UNIVERSITY OR A GOVERNMENTAL AGENCY. I N THE CASE BEFORE US ADMITTEDLY THE TAXPAYER IS CONDUCTING C OACHING CLASSES. THEREFORE IT CANNOT BE TREATED AS A CHAR ITABLE INSTITUTION AS PROVIDED IN SECTION 2(15) OF THE ACT . THIS TRIBUNAL IS OF THE OPINION THAT THE TAXPAYER IS NOT ELIGIBLE FOR REGISTRATION U/S 12AA OF THE ACT. ACCORDINGLY THE ORDER OF THE LOWER AUTHORITY IS CONFIRMED. 5. IN THIS CASE ADMITTEDLY THE PREDOMINANT OBJECT OF THE TRUST IS TO PROMOTE THE CHRISTIAN RELIGIOUS FAITH AND NO EDUCAT IONAL ACTIVITY WITHIN THE MEANING OF SECTION 2(15) WAS CARRIED OUT. THE MATT ER WOULD HAVE BEEN ENTIRELY DIFFERENT HAD THE ASSESSEE CLAIMED RECOGNI TION U/S 12AA OF THE ACT AS A RELIGIOUS TRUST. HOWEVER THE ASSESSEE HAS NO T APPLIED FOR REGISTRATION U/S 12AA OF THE ACT AS RELIGIOUS TRUST. HENCE THI S TRIBUNAL IS NOT IN A 8 ITA NO.298/COCH/2013 POSITION TO ENDORSE THE ACTIVITY OF THE ASSESSEE AS EDUCATIONAL TRUST. THEREFORE WE DO NOT SEE ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY. ACCORDINGLY THE ORDER OF THE ADMINISTRATIVE COMMIS SIONER IS CONFIRMED. 6. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 25 TH OCTOBER 2013. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN DT : 25 TH OCTOBER 2013 PK/- COPY TO: 1. WIN PUBLICATION TRUST H.NO.44/2326 FRIENDS LAN E-3 DESABHIMANI ROAD KALOOR KOCHI-17 REPRESENTED BY ITS TRUSTEE S WAPNA ANNA ALEXANDER 2. THE CIT-1 KOCHI 3. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR INCOME-TAX APPELLATE TRIBUNAL COCHIN BENCH