S. 11 : Property held for charitable purposes-Education-Study and promote the latest development in the field of Architecture-Mere surplus arising as a result of charitable activities the Institution does not cease to be a charitable institution-Entitle to exemption. [S. 2(15), 12A, Architect Act, 1872]
The assessee is a trust registered with the Charity Commissioner and also under section 12A of the Income-tax Act, 1961. The assessee plays a major role in promoting the profession of architect by organising and uniting the Architects of India. The Assessee has shown income from membership fee advertisement, sale of publication, sponsorship fee, etc. The AO denied the exemption under section 11 of the Act on the basis that the activities of the assessee do not qualify as ‘education’ within the meaning of section 2(15) of the Act. Order of the AO is affirmed by the CIT(A). On appeal the Tribunal held that the assessee conducts architecture examinations, publishes journals, conducts seminars, conferences for promoting the profession of Architects etc. The Tribunal also observed that mere surplus arising as a result of charitable activities the institution does not cease to be a charitable institution, denial of exemption is not valid. Tribunal directed the AO to allow exemption under section 11 of the Act. (ITA No. 293/Mum/2022 dt. 19-5-2022, Bench “E”) (AY. 2017-18)
The Indian Institute of Architects v. ITO (Mum.) (Trib.) www.itatonline.org
[Coram : Hon’ble Shri Pramod Kumar, Vice President and Hon’ble Shri Sandeep Singh Karhail, Judicial Member]