TMI Blog2017 (1) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... aining and continuing technical education for Officers, both on the deck and engine side - One of the object was to register with the Director General of Shipping and obtain other necessary approvals at the State and Central levels - Thus the Assessee is giving training in the area to seamen - All the courses may not be approved by the Director General of Shipping but that by itself is no ground to hold that the purpose is not charitable - The exemption u/s 11 can be claimed and bearing in mind the object of the Trust - Decided in favour of assessee - ITA NO.1733/Mum/2015 - - - Dated:- 15-11-2016 - Shri Joginder Singh, Judicial Member, and Shri N.K. Pradhan, Accountant Member For The Assessee : Shri Prakash K. Jotwani For The R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been making profit on continuous basis and without any charitable object as provided under section 2(15) of the Act. 3. Facts of the case are that the assessee filed its return of income on 25.9.2009 declaring total income of ₹ 26,94,806/- along with the income and expenditure account, balance sheet and Audit Report in form No.10B. The assessee trust is registered as a Charitable Trust with DIT(E), Mumbai u/s 12A vide Registration No.TR 29320/1992 and also with Charity Commissioner, Mumbai vide Registration No.E-13963/-. The assessee trust is engaged in charitable activities in the field of training of all categories of Nautical and other officers and ratings conducting training for employees of marine companies and claimed its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O held that the assessee was engaged in the activities of training and not education as contemplated within the meaning of section 2(15) of the Act and thus the trust was doing the activities of commercial nature and clearly business activities and accordingly, the AO completed the assessment u/s 143(3) of the Act vide assessment order dated 24.12.2011 at an income of ₹ 2,62,94,895/-. Aggrieved by the order of the AO, the assessee has preferred appealbefore the ld. CIT(A) who also dismissed the appeal of the assessee by upholding the assessment order as under : 4. I find that the appellant is certainly engaged in the activities of training the cadets, which by itself cannot be qualified as the education . There is no merit in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. 6. On the contrary, the ld.DR reiterated the facts of the case as submitted before the ld.CIT(A) and heavily relied on the order of ld.CIT(A). 7. We have carefully considered the submissions of the parties, perused the material placed before us including the orders of authorities below and case laws relied upon by the parties. We find that the assessee was denied exemption under section 11 of the Act on the ground that the assessee was engaged in imparting training to cadets and not education within the meaning of section 2(15) of the Act and motive of the assessee was earning profit from the said activities. We find that the similar issue has been considered by the Hon ble Jurisdictional High Court in the case of Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gned order concludes that the Assessee is giving training in the above area to seamen. All the courses may not be approved by the Director General of Shipping but that by itself is no ground to hold that the purpose is not charitable. The exemption under section 11 can be claimed and bearing in mind the object of the Trust. We are of the opinion that the Tribunal and the CIT (Appeals) have approached the issue correctly and in the light of the definition so also the tests laid down came to a factual conclusion that the Respondent is entitled to exemption under section 11 of the Act. This is not a case where the purpose can be said to run a coaching class or a centre. This is an institution which imparts education in the area of pre-sea and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
