GIA India Vs ITO (Exemptions) (ITAT Mumbai)
ITAT Mumbai held that courses not having any approval or affiliation with any authority cannot be ground to hold that the purpose is not charitable. Accordingly, benefit of exemption under section 11 of the Income Tax Act granted since activity of imparting education within meaning of section 2(15).
Facts- The case was selected for scrutiny and the statutory notices were duly served on the assessee. During the course of hearing the AO called on the assessee to furnish details of courses conducted during the FY 2009-10 and the fees received against it. The AO further required the assessee to furnish details regarding the duration of the courses and other information in relation to the courses conducted by the assessee. After perusing the various details furnished by the assessee the AO held that the activities of the assessee are for advancement of general public utility in nature and is hit by the First Proviso to Section 2(15) of the Act,as the assessee has undertaken activities in the nature of business and the services in relation to business industry of gems and jewellery.
AO concluded that the activities of the assessee cannot be held as “imparting of education” and that the assessee has carried on commercial activities in the name of education. The AO assessed the total income based on the income and expenditure account amounting to Rs. 2,41,61,700/-. CIT(A) upheld the action of AO. Being aggrieved, the present appeal is filed.
