TaxTMI 
TaxTMI 
2020 (12) TMI 563
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.... the Act without providing proper opportunity of hearing to the assessee and on the ground that the activities are commercial in nature. 3. Facts in brief are that the assessee e filed an application in Form No.10A seeking registration u/s.12A of the Income tax Act, 1961 on 31.3.2019. The CIT (E) observed that the assessee trust is conducting the following activities: (i) imparting long term training of 30 weeks duration to fresh degree/diploma engineers on operation and maintenance of thermal power plants as per syllabus specified by Central Electricity Authority, Ministry of Power, Govt. of India. (ii) Vocational training to engineering students on power plants. (iii) Simulator training to fresh/experienced e....
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..... He submitted that the ld CIT(E) without analysing the above facts, rejected the application for grant of registration u/s.12AA of the Act, hence, the matter may be restored to the file of ld CIT(E) to decide the issue afresh. 7. Replying to above, ld CIT DR submitted that several opportunities have been provided to the assessee as is evident from the order of ld CIT(E) and the ld A.R. of the assessee has appeared before the ld CIT(E) and produced the relevant materials required for adjudicating the issue. Hence, he cannot be said that opportunities have not been provided. He also submitted that the assessee trust is collecting fees from various organization for conducting the training, therefore, the objects of the trust are not charit....
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....eds of particular commercial companies / entities. The trustee explained that they are conducting training programs as per syllabus prescribed by Govt, for Electrical, Mechanical and Instrumentation branches for Engineers, Supervisors and Technicians. Further, the assessee Is collecting fees for such training programs. Thus, they are not charitable objects as defined u/s. 2(15) of the Act. Hence, the objects are commercial in nature. 4. Activities favoring trustees: During the course of hearing on 03.09.2019, the AR submitted that Mr. Debjeet Swain, the Managing Trustee owns a company called M/s. O & M Solutions Pvt. Ltd. and Mr. Bishrajyothi Patnaik, CA is auditing the accounts of the said company and assessee trust. The assessee ....
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....nature. 4.2 Objects of the Trust: The objects of the assessee trust are mentioned in Clause-4 of the Trust deed. The relevant portion is reproduced as under: 4. The purpose and objects for which this Trust has been established are for providing relief help and assistance to the general public and those in the lower strata of the Society particularly those who are economically and educationally backward in matters of higher education, medical, Technical, professional or other fields of economic activity or in any other matter of public utility and charity not involving any activity for personal profit. For the purpose of these objects and without prejudice to the generally and width thereof the object shall include: ....
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.... assessee is charging certain amount from the companies. Thus, the activity is nothing but a contract. Thus, there is no charitable element Involved In the said activity, Thus, the activities art commercial In nature, Further, the assesse's activities are not In accordance with the objects mentioned In the trust deed. Thus, assessee is pursuing objects which are not Included In the trust deed. Thus, the assessee is not eligible for registration u/s. 12A of the Act. 5. In view of all the above facts, I am of the view that the applicant is not fit for grant of registration u/s.12AA of the Act. Hence, the application in Form No,1QA filed by the above applicant Is hereby rejected." 10. We also find that the ld CIT(E) has reproduced ....