Itxa/30/2001 Of The Director Of Income Tax, (Exemptions),Mumbai v. National Saferty Council

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTIONINCOME TAX APPEAL NO.30 OF 2001The Director of Income Tax(Exemptions), Mumbai...Appellant.Vs.National Safety Council,Mumbai...Respondent.Mr.P.S.Sahadevan for the Appellant.Mr. Poras Kaka with Mr. N. Doshi i/by Crawford Bayley& Co. for the Appellant.CORAM : F.I. REBELLO &R.S. MOHITE, JJ.DATED : 22nd January,2008PC :( Per R.S. Mohite, J.)1. Heard both sides.2. Two Questions of law as framed in the appeal memoare as under.(a) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in law upholdingthe order of Commissioner of Income Tax(Appeals) and consequently directing theAssessing Officer to allow exemption underSection 10(22) without appreciating the factthat the assessee trust is not university orother educational institute existing solely foreducational purposes? (b) Whether on the facts and in thecircumstances of the case, and in law, theIncome Tax Appellate Tribunal was right inholding that the activities carried out by theassessee are education activities withoutconsidering the decision of the Hon’ble SupremeCourt in Sole Trustee Lok Shikshan Trust Vs.Income Tax Department (101 ITR 231) and SurateArt Silk Cloth Manufacturers Association (121ITR 1)?3. The questions as framed turned upon the basicquestion as to whether the income of the respondent canbe said to be "any income of a university or any other educational institution existing solely for the purpose of education and not for the purpose of profit". 4. On this question ITAT, after a detailed discussionand elaborate reasoning held that the assessee fellwithin the term "any other educational institution"within the meaning of Section 10(22) of the Income Tax Act and therefore, entitled to exemption under that provision of the Act. 5. Though, this is essentially a question of fact, wehave perused the Memorandum and Rules and Regulations ofthe Association-Assessee which is a society registeredunder the Societies Registration Act 1860 as well as Bombay Public Trust Act,1950. It appears from theMemorandum of Association that the main objects of theassessee i.e. National Safety Council appears to beeducating the public in regard to safety , protectionand health among industrial workers, to organise andconduct programmes, lectures. conferences and otheractivities for promoting free discussions on all mattersand questions relating to safety measures, proceduresand research, to conduct educational campaigns with aview to arouse and maintain public opinion and interestof the employers and workers and their support to safetyand accident prevention and to encourage all persons andother associations to adopt, institute and support safety measures and accident prevention programmes. The other objects are ancillary to the above. 6. Article-4 of the Memorandum provides that the incomeand property of the council shall be utilised solelytowards the promotion of the aims and objects of thecouncil and no part of the same shall be paid or transferred directly or indirectly by way of dividend, bonus and profit to the members of the council. 7. Rule-2 of its Rules and Regulations categoricallylays down that the council shall be an independent, non commercial, non profit making, non political and autonomous society. come within the scope of "other educational institution" as specified in Section 10(22) of the Act. the case. In the circumstances, questions of law as framed do not arise and the appeal is dismissed. (R.S. MOHITE, J.) (F.I. REBELLO, J.)