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2011 (9) TMI 1059 - AT - Income TaxRefusing registration of the trust under section 12AA - Held that:- Though it is claimed that education is imparted but, in our opinion, as per material on record, it is just a coaching class and cannot be equated with the word “education” as contemplated in sec. 2(15) of the Act, thereby, it can be said that the assessee’s activity is covered into the charitable purpose. Moreover, though it is argued that there is no commerciality but, we find that the entire coaching to the cadets is imparted only on the commercial basis. How much surplus is with the assessee-trust is not the decisive but the entire foundation of the exemption is based on objects and activities of the Trust / Institution. It is true that, in the Trust-Deed the assessee has shown charitable object in very colourful manner but as per the evidence on record the said objects are only on the paper. After giving our anxious consideration to all the facts and evidence on record, in our opinion, the assessee is conducting the coaching classes of the short duration of the 2 and 3 days to the cadets desiring to joint Merchant Navy and the said coaching classes cannot be treated as charitable one. Moreover, the assessee’s activity is commercially tainted and nothing is placed before us to show that at what concessional rates the courses are being conducted. In our opinion, the Ld. DI (Exempt) has rightly rejected the application of the assessee. We find no merits in the appeal filed by the assessee.
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