TaxTMI 
TaxTMI 
TaxTMI 
2016 (3) TMI 249
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....unskilled employees and workers of the settler companies and the benefit of such training is directly going to the settler companies which is in contravention of provisions of Section 13 of the Income Tax Act, 1961? 2. Whether the Tribunal was correct in holding that the trust is entitled for registration under Section 12AA and the activities of the trust would fall within the ambit of 'education and 'advancement of any other object of general public utility' though the objects and the activities of the trust are towards a group of person/employees engaged by the settlers and not for the purpose of general public at large?" 2. We have heard Mr.E I Sanmathi, learned Counsel appearing for the appellant-revenue and Miss.Jinita C....
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....er section 12AA(3) of the Act in the event it is later on found out and the learned DIT is satisfied that the activities of the trust are not genuine or are not being conducted in accordance with its stated objects. In the case on hand, we find that the learned DIT in the impugned order has not rendered any adverse finding with regard to either the objects of the trust being not genuine or that its activities were not in accordance with its objects but has proceeded further to disallow the assessee's Registration under section 12AA of the Act. 4.2.3 The learned DIT was of the view that the assessee trust is not for charitable purpose as per section 2(15) of the Act but formed only to cater to the needs of the settlers of the trust, as....
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....was restricted to a section of society and not for 'advancement of object of general public utility.' On the other hand, he concludes that the training is imparted to unskilled workers(supra). This reference, obviously is not to the training of permanent workers in the mining activities; who are also to be trained by the assessee trust, but to the unskilled and unemployed others who are to benefit by future employment, from such training rendered to them. In coming to this view, we draw support from the decision of the Hon'ble Apex Court in the case of CIT V Gujarat Maritime Board (2007) 295 ITR 561 (SC) wherein at para 10 &11, it held as under:- "10. We have perused number of decisions of this Court which have interpreted the....
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....ent case in our view is squarely covered by the judgment of this Court in the case of CIT vs. Andhra Pradesh State Road Transport Corpn. [1986] 159 ITR 1 in which it has been held that since the Corporation was established for the purpose of providing efficient transport system, having no profit motive, though it earns income in the process, it is not liable to income-tax". 4.2.5. In our considered opinion, the factual matrix of the case on hand clearly evidences that the assessee imparts 'education' to both employed and to be employed skilled and unskilled workers of both the settlers and others and its objects also further 'any other object of public utility' as it would benefit the public in terms of future employment a....