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2016 (3) TMI 960 - ITAT HYDERABAD

2016 (3) TMI 960 - ITAT HYDERABAD - TMI - Registration under section 12AA denied - Held that:- We find that assessee only intends to facilitate the education programmes in and outside India, but is not carrying on the education activities as such. It intends to be a facilitator by holding various summits, particularly, in the field of higher education by bringing in foreign universities. Further, the assessee also intends to develop, process, export and market all types of educational material a .....

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we find that assessee is also not carrying on the charitable activity as required under section 2(15) of the I.T. Act. Therefore, we do not see any reason to interfere with the order of the CIT(E) denying the registration under section 12AA of the I.T. Act. - Decided against assessee - ITA.No.960/Hyd/2015 - Dated:- 10-2-2016 - SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER For The Assessee : Mr. PSRVV Surya Rao For The Revenue : Mr. Konda Ramesh ORDER PER SMT. .....

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ies raised by the CIT(E) and also could not produce the books of account for verification, the application for registration was rejected by the CIT(E) vide orders dated 31.07.2012. On appeal filed by the assessee, the order of the DIT(E) was set aside by the Tribunal in ITA.No.1527/Hyd/2012 dated 22.02.2013 and directed the CIT(E) to reconsider the application after giving the assessee adequate opportunity of hearing. Consequent thereto, CIT(E) reconsidered the assessee s submissions and called .....

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. foreign programme partner, with which it has also entered into two MOUs dated 28.05.2010. On perusal of both the MOUs, the CIT(E) noticed that the MOU is signed by Mr. S.B. Anumolu, as President of the Indus Foundation Inc. who is also the Managing Trustee of the assessee trust and the second MOU is signed by John Bolton, CEO of the Indus Foundation Inc. and on behalf of the assessee trust it is signed by Mr. S.B. Anumolu as the Authorised Representative of the Indus Foundation Inc. He observe .....

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cipation fee will be around ₹ 3000 per person in each city, whereas, in the second MOU, it is mentioned that there will be no participation fee for students and further that participation fee will be determined and decided from time to time after taking into account the cost involved in hosting the events. It was also observed that all the revenues accruing from the summits by way of participation fee and sponsorship will be deposited into the bank account in Indian Bank under the name Ind .....

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n the income and expenditure account for different accounting years, may include expenditure incurred for mobilizing foreign institutions/ universities for participating in such educational summits hosted by the assessee trust in India. Thus, the CIT(E) observed that the activities of the assessee are both in India as well as outside India and therefore, the assessee is not eligible for registration under section 12AA of the I.T. Act. Further, he also noticed that the objects of the assessee inc .....

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stinction of caste, creed, race or sex. He has submitted that the other objects are only incidental to the main objects and the assessee has not carried out any activity outside India during the relevant assessment year. He has also drawn our attention to the financials of the assessee trust to demonstrate that the expenditure incurred by the foreign partner has been reduced from the claim of expenditure for the year ending 31.03.2011. Thus, according to him, assessee has been carrying on educat .....

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f a trust are extended outside India, as long as the property is held wholly and exclusively under trust for charitable and religious purposes as provided under section 11 of the Act, then, such a trust, subject to the fulfillment of other conditions, will be entitled to registration, the Ld. Counsel for the assessee relied upon the decision of the Mumbai Tribunal in the case of Critical Art & Media Practices vs. DIT(E), Mumbai (2015) 56 taxmann.com 118 (Mumbai - Trib.). Thus, according to t .....

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ion 12AA of the I.T. Act. He also tried to distinguish the case law relied upon by the Ld. Counsel for the assessee. 5. Having regard to the rival contentions and the material on record as well as the trust deed and various clauses thereof, we find that assessee only intends to facilitate the education programmes in and outside India, but is not carrying on the education activities as such. It intends to be a facilitator by holding various summits, particularly, in the field of higher education .....

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a Institute Trust vs. DIT(E) (cited supra), is, in our opinion, misplaced, as, in the said case, the Tribunal has observed that the trust deed itself provides for a clause that the area of operation was throughout India and further that even if activities expands to places outside India, those outside activities would not be funded through the Indian funds . The Tribunal has observed that the assessee therein had not carried out activities outside India and that no material has been brought on r .....

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