Vocational Education Though Lacked Systematic Education Is Eligible for Section 12A Registration | HC

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Section 12A Registration

Case Details: Commissiner of Income-tax (Exemptions) vs. Unique Educational Society - [2024] 168 taxmann.com 448 (Punjab & Haryana)

Judiciary and Counsel Details

  • Sanjeev Prakash Sharma & Sanjay Vashisth, JJ.
  • Varun Issar, Sr. Standing Counsel for the Appellant.

Facts of the Case

The assessee-society was running a private Industrial Training Institute imparting vocational training to the students. It applied for registration under Sections 12A and 12AA. The CIT(E) rejected the application by holding that vocational training did not constitute “education” as it lacked a systematic education.

On appeal, the Tribunal found that the institute was affiliated with the National Council for Vocational Training (NCVT) and State Council for Vocational Training (SCVT), fulfilling national education standards. It held that vocational education was crucial for individual development and employability and was a recognized form of systematic education by government bodies that duly fell within the purview and scope of the term ”Education” as used in section 2(15). Therefore, it directed CIT(E) to grant registration under sections 12A and 12AA.

Aggrieved by the order, an appeal was filed to the Punjab & Haryana High Court.

High Court Held

The High Court held that vocational education is a form of education necessary for the development of an individual for the purpose of earning his living. Vocational training has now been recognised to be as important as any other field of education. For this reason, the National Council for Vocational Training has been established to streamline and lay down a systematic pattern of providing education. As the institute is duly approved by the NCVT, it cannot be said that the institute is not imparting education.

Accordingly, the High Court held that no interference in the order of the Tribunal was warranted. The appeal was thus found to be without merits and accordingly dismissed.

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