Appeal: Question of law can be raised at any stage in income tax proceedings: Educational Institution: Exemption u/s. 10(23C) (iiiad): Seminary imparting religious education: Entitled to exemption:

Assessee was a seminary imparting religious education. For want of registration u/s. 12A of the Incometax Act, 1961, it forfeited the claim for exemption u/s. 11 of the Act. In appeal, it raised an alternate claim before the CIT(A) who allowed the claim first, but recalled it later. The Tribunal allowed the claim on merits.

On appeal by the Revenue, the Kerala High Court upheld the decision of the Tribunal and held as under:

“i) A pure question of law can be raised at any stage of the proceedings under the Income-tax Act.

ii) There is nothing to indicate that section 10(23C) (iiiad) of the Act, requires the educational institutions referred to therein to impart education in any particular subject or in any manner whatsoever. The term “education” enjoys a wide connotation covering all kinds of coaching and training carried on in a systematic manner leading to personality development of an individual.

iii) In the case of a seminary, students on completion of their studies are made priests, who head churches as religious leaders practicing and propagating religion as a profession. Accordingly, religious teaching in seminary is also education and seminary is, therefore, an “educational institution” entitled for exemption u/s. 10(23C)(iiiad).

iv) The ground raised in appeal by the assessee based on section 10(23C)(iiiad) was certainly a pure question of law and on the same facts the issue was found in favour of the assessee. The assessee was rightly found to be eligible to raise the additional and alternative ground of exemption which was correctly found in its favour.”