12AA Registration denied to Play school for pre KG Students : Cochin ITAT

The Cochin ITAT has denied registration u/s 12AA of the Act to a play school for pre-KG Students by holding that education covered in Charity as per Sec 2(15) means formal schooling and not pre-KG schools. The ITAT has laid down as under :

“This Tribunal found that “education” means a formal schooling, which resulted in conferment of a degree or diploma or award by government or governmental agency. Mere training Centre or tuition centre cannot be considered to be an educational institution as contemplated in section 2(15) of the Act. In this case, the assessee is running only play school for pre KG students. No approval was obtained from the State Government for running regular school. It is also an admitted fact that the assessee has not applied for recognition or approval from the State Government for running a regular school. In those circumstances, running a play school for pre KG students may, at the best, be called as running a sophisticated child care centre in an air conditioned room. Running a child care centre or play school would not come within the purview of “education” as contemplated in section 2(15) of the Act. As observed by the Apex Court in Sole Trustee, Loka Shikshana Trust vs CIT (1975) 101 ITR 234 (SC) what education connotes in section 2(15) is the processing of training and developing the knowledge, skill, mind and character of students by normal schooling. Since admittedly, normal school was not run by the assessee, this Tribunal is of the considered opinion that the assessee is not entitled
for registration u/s 12AA of the Act. Accordingly by following its earlier order in M Star Charitable Society (supra) and for the reasons stated therein, the order of the Administrative Commissioner is confirmed.”

For complete text of judgement Tolins edu trust