TaxTMI 
TaxTMI 
2016 (10) TMI 177
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....to as the Act) as done by the AO on the ground that the assessee is engaged in the business of activities not covered within the meaning charitable as defined in section 2(15) of the Act and that the activity of training of cadets was not qualified to be education and also that the assessee has 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 Rs. 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....
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....f the aforesaid object" 4. Accordingly, the AO issued show cause notice to the assessee dated 14.10.2011 which was replied on 21.12.2011 and the detailed reply of the assessee is reproduced in para 3.12 of the assessment year. After perusing the reply of the assessee, the AO 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 Rs. 2,62,94,895/-. Aggrieved by the order of the AO, the assessee has preferred appeal before the ld. C....
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....erein an identical issue has been decided in favour of the assessee and prayed that following the ratio laid down in the said decision the order of the ld.CIT(A) be set aside and AO be directed to allow the deduction as claimed by the assessee under section 11 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 ca....
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.... the ratio of the judgment of the Hon'ble Supreme Court or of this Court, which may be dealing with section 10(22), has been applied to such an extent as complained by Mr Malhotra. In the present case, the Tribunal in paragraph 9.6 of the impugned 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 factua....