2014 (7) TMI 255

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....e is a company registered under the provisions of the Companies Act and is engaged in imparting education in the field of catering, hotel and computer management. The assessee is running an institute under the name Monarch International College of Hotel Management (herein after referred to as MIC). The assessee filed its return of income for the AY.2008-09 on 30-09-2008 declaring loss of Rs. 23,52,233/-. The case of the assessee was selected for scrutiny and notice u/s. 143(2) of the Income Tax Act, 1961 (herein after referred to as 'the Act') was issued to the assessee on 18-09- 2009. The assessee is conducting hotel management course in association with international acclaimed institutions, such as, Regency Australia and Centennial Colleg....

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....ees. 4. On the other hand, Shri S.Sridhar, appearing on behalf of the assessee contended that the amount paid by the assessee is not in the nature of technical services or consultancy. The ld.Counsel also referred to Article 2 & 3 of the agreement. The ld.Counsel supporting the impugned order contended that the CIT(Appeals) has observed in his order that in the copy of application for release of foreign exchange filed before the State Bank of Travancore, it is clearly mentioned that the foreign currency is being paid on account of books and course material on behalf of the students. The ld.Counsel prayed for the dismissal of the appeal of the Revenue. 5. We have heard the submissions made by the representatives of both the sides and h....

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....emain the sole and exclusive property of Centennial College (the 'Centennial Proprietary...........) 2.2 xxxxxxxxxxxxxxxx 2.3 xxxxxxxxxxxxxxxx 2.7 Will be responsible for providing curriculum, evaluation and graduation audit for the courses included in the model route. Article-3: Fees: 3.1 The Centennial fees for the "HTA" program payable to Centennial College would be $600.00 Canadian Dollars, or US$ equivalent at rate posted by the Canadian Imperial Bank of Commerce (CIBC), per student per year based on 2 semesters. This fee is to be forwarded to Centennial College 6 weeks prior to the commencement of the semester start in July. 3.2 xxxxxxxxxxxxxx 3.3 Monarch agrees that said money shall not be subjected to deducti....