Monday, August 8, 2016

Society providing training in travel and tourism is entitled to sec. 11 exemption

a) The assessee was a society registered under section 12A. It provided various courses, including certificate course in Travel & Tourism' which was being conducted in collaboration with Miranda House, University of Delhi.
b) The AO held that courses conducted by assessee did not have any recognition from Govt. and activities carried on by assessee would fall outside purview of 'charitable purpose' as given under section 2(15). Consequently, assessee was not entitled to exemption under sections 11 and 12.
c) The CIT(A) reversed order of the AO. Aggrieved-revenue filed the instant appeal. The Tribunal held in favour of assessee as under:
1) For certificate course of Travel & Tourism the course content was set by Miranda House, education and training was provided by the appellant, examination paper was set out by appellant, examination was conducted by appellant and the Diploma Certificate was awarded by both Miranda House and the appellant to the successful candidates/students.

2) The examination procedure being followed by the appellant was, in fact, more comparable to a normal schooling activity. A proper attendance record was being maintained by the appellant for all the students as well as for the teachers and visiting faculty. The appellant had also set operating standards for the various courses conducted by it. These operating standards clearly ear marked each course’s periodicity, examination schedule, duration, eligibility criteria, registration criteria, fee schedule, rules vis-a-vis attendance procedure, etc.These facts clearly established that activities of the appellant were more analogous to schooling.
3) Assessee was carrying on educational activities imparting formal education and without being aô€šiliated to or accountable to any authority. Such a trust could certainly be considered as qualifying for exemption under section 11(1)(a), read with section 2(15). 
4) Thus, assessee was entitled to exemption under sections 11 & 12. - [2016] 72 47 (Delhi - Trib.)

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