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(Dated this the 6th day of July 2022) Basant Balaji J., These appeals are filed by the appellant against the orders of the Income Tax Appellate Tribunal, Cochin Bench in I.T.A Nos.266/COCH/2018, 28/COCH/2020, and 29/COCH/2020 for the assessment years 2003-04,2007-08 and 2010-11 respectively.

2. The appellant is a registered charitable Trust with the primary object of promoting the advancement of education and training. The Trust was also granted an exemption under Section 12AA of the Income Tax Act (for short 'the I.T Act') ITA Nos.3/2021,74/2019 & 4/2021 by the Commissioner of Income Tax, Kozhikode by certificate dated 28.5.2003. For the assessment years 2003-04, the Assessing Officer, after issuing notice under Section 143(2) of the I.T. Act and hearing the assessee along with his duly authorized agent, passed an assessment order dated 13.2.2006 holding that the Trust is not a Charitable Trust, but running a parallel college/Tuition center to make a profit and as such deduction under Section 11 of the I.T. Act is not allowable. As per the assessment, the total amount payable was Rs.51,483/-. Similarly, for the assessment years 2007-08, the total amount payable was Rs.1,11,180/- and for the assessment year 2010- 11, the total amount payable was Rs.1,65,570/- by the appellant.

(x).Whether on the facts and circumstances of the case the Tribunal was justified in confirming the levy of maximum marginal rate of tax on the appellant applicable to AOP u/S 164/165 of the Act.

6. Heard the learned counsel for the appellant Adv. Ramesh Cherian John and the learned standing counsel for the respondent, Adv. Christopher Abraham.

7. The main ground raised by the counsel for the appellant, is that the appellant is a Charitable Trust formed with the primary object of promotion and advancement of ITA Nos.3/2021,74/2019 & 4/2021 education and training and that it has been awarded a certificate under Section 12AA of the I.T. Act. Having been awarded the certificate mentioned above, the Assessing Officer cannot make a further probe into the objects of the Trust and make an assessment holding that the Trust is not a Charitable Trust. The learned counsel went on to submit that the decision of the Hon'ble Apex Court relied on by the Tribunal in Sole Trustee (supra) is distinguishable from the facts of the case and hence, the finding of the Tribunal that the assessee cannot be considered as an education Trust within the meaning of Section 2(15) of the I.T. Act is wrong. The counsel also relied on the judgment passed by a Division Bench of this court in W.A. 750 of 2006, in which the challenge was made against the constitutional validity of service tax treating parallel college as commercial training and ITA Nos.3/2021,74/2019 & 4/2021 coaching centres coming under section 65(27) of the Finance Act, whereby a Division Bench of this court has held that the Parallel colleges/Tuition centres will come under the definition of charitable purposes. He mainly relies on that since a Division Bench of this has already held that the appellant's nature of business is of a charitable center, there is no shadow of a doubt that the Trust will fall within the definition under Section 2(15) of I.T. Act. Hence the orders of the assessment authority as well as the first and second appellate authority are wrong in facts and in law and hence, liable to be interfered with.

9. Annex. B is a certificate issued by the Commissioner of Income Tax, Kozhikode under Section 12AA of the I T Act. Clause 3 of the said certificate specifically states that 'this registration is not a finding regarding charitable nature of the ITA Nos.3/2021,74/2019 & 4/2021 fund". In view of the said statement, the appellant cannot contend that once registration is granted under Section 12 AA of the I T Act, the assessee cannot probe into the nature of the charitable purpose for assessment. The object of the Trust is not only to conduct educational, cultural, and social advancement of the people of Malabar but also to publish and propagate books, periodicals, and journals as deemed useful by the Trust for the achievement of the objectives of the Trust. The appellant is collecting fees for imparting coaching to the students. It cannot be treated as charitable in nature and it is a paid service with the motive of earning profit out of it.

12. Though education is included in the said definition, on case by case the purpose and object of each Trust have to be looked into. It is not an universal declaration that all Education Institutions can be termed as a charitable purpose under Section 2(15) of the I T Act.

13. The Hon'ble Apex court in Sole Trustee (supra) held that the sense in which education has been used in Section 2(15) of the I T Act is the systemic instruction, schooling or training given to the young in preparation for the work of life. It also connotes the whole course of scholastic instruction that a person has received. The Hon'ble Apex Court, thereafter, went on to hold that "what education connotes in that clause is the process of ITA Nos.3/2021,74/2019 & 4/2021 training and developing the knowledge, skill, mind and character of a student by normal schooling. Going by the dictum laid down it can be seen that mere coaching given to students being education cannot fall within the meaning of education as provided under Section 2(15) of the I T Act. As stated above, to bring a Trust within the ambit of Section 2(15) of the I T Act, it is necessary to probe into the activities and object of the Trust and once it is found that there is no charitable activities in the Trust or if there is charitable activities coupled with profit- making, the same cannot be brought under the definition of Section 2(15) of the I T Act. The Assessing Officer as well as the two appellate authorities having found in the fact that the activities done by the appellant Trust are giving coaching to students, the same cannot be treated as a charitable institution as provided under Section 2(15) of the I T Act, cannot be found ITA Nos.3/2021,74/2019 & 4/2021 fault with by this Court sitting in appellate jurisdiction under Section 260A of the I T Act.