Skill Development Activities Qualify as Education u/s 2(15) | ITAT

Case Details: Deputy Commissioner of Income-tax (Exemptions) vs. ICT Academy of Tamil Nadu - [2026] 184 taxmann.com 634 (Chennai-Trib.)

Judiciary and Counsel Details

• Manu Kumar Giri, Judicial Member & S. R. Raghunatha, Accountant Member
• C. Sivakumar, Addl.CIT for the Appellant.
• G. Ramachandran, CA for the Respondent.

Facts of the Case

The assessee, a society registered under section 12A, was engaged in skill development, training, certification and employability enhancement programmes. The assessee filed a nil return claiming exemption under sections 11 and 12.

The Assessing Officer (AO) held that the assessee was engaged in activities falling under the limb of ‘advancement of any other object of general public utility’ as specified in section 2(15). He invoked the proviso to section 2(15), which provides that such activities were in the nature of trade, commerce, or business. Consequently, the assessee’s activities were treated as non-charitable, leading to the denial of exemption under section 11.

On appeal, CIT(A) held that the activity carried out by the assessee qualified as ‘education’ in terms of section 2(15), and thus entitling the assessee to claim exemption under section 11. The AO filed an appeal to the Chennai Tribunal.

ITAT Held

The Tribunal held that it is an admitted fact that the assessee is a society registered under section 12A and is engaged in activities relating to skill development, training, certification, and the enhancement of employability of students and faculty, in coordination with Government bodies and educational institutions. The nature of activities, as borne out from the record, indicates that the assessee conducts structured training programmes, faculty development initiatives and vocational courses aligned with national skill development policies.

The dominant object of the assessee is to impart skill-based education and training to enhance employability. Such activities, in the present socio-economic context, form an integral part of the educational framework. The programmes conducted by the assessee are structured, curriculum-based and aimed at systematic development of skills and knowledge.

Therefore, the same cannot be equated with mere commercial or business activities. The mere presence of receipts from training or certification programmes cannot, in isolation, lead to the conclusion that the proviso to section 2(15) is attracted. Consequently, the assessee is entitled to an exemption under sections 11 and 12.

List of Cases Reviewed

• ACIT (Exemption) v. Ahmedabad Urban Development Authority [2022] 143 taxmann.com 278 (SC)/[2023] 291 Taxman 11 (SC)/[2022] 449 ITR 1 (SC) (para 21) followed

List of Cases Referred to

• Asstt. CIT (Exemptions) v. Ahmedabad Urban Development Authority [2022] 143 taxmann.com 278 (SC)/[2023] 291 Taxman 11 (SC)/[2022] 449 ITR 1 (SC) (para 9).