2022 (4) TMI 335

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....2A(a) of the I.T. Act. The trust filed its return for the AY 2010-11 on 18.10.2010 declaring a total income of nil. The case was selected for scrutiny throuqh CASS and notice u/s 143(2) of the Act was issued accordingly. During the course of scrutiny In response, the authorized representative Mr. R. Govindan, the Books of accounts produced were examined by the assessing officer (in short "the AO"). After considering the details and documents and discussing the case with the authorized representative, the assessment was completed determining the total income at Rs. 2,52,28,790/- on 25.02.2013 u/s 143(3) of the Act. 3. Aggrieved by the order, the assessed preferred appeal before the CIT appeal who has deleted the addition by observing as und....

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....Mds/2013 dated 27 .09.2013, it is held that there is no violation of sec.13 of the Act by the appellant. Regarding the transaction with M/s. Meru Shipping Lines Pvt. Limited (MSLPL), the AO himself admitted that the marine students of the Trust undergo virtual and practical onboard training in the vessel owned by the Company. The AO also admitted that the company M/s. MSLPL provides employment to the marine students passed out of colleges of the Trust and the amount paid to them is adjusted against the charges to the company. In fact the Trust is the only beneficiary and not the company and the decision of the AO in this regard is rejected devoid of merit. Regarding the transactions with M/s. SAMS Pvt. Limited, the AR stated that the Trust ....

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....nce sheet, the AO noted that an amount of Rs. 24,78,316/- is paid as advance to Sri Vekkaliamman Builders and Promoters for which the Managing Trustee and Founder of the Trust Sri. Madurai Karthikeyan is the Proprietor. Similarly an amount of Rs. 7,00,000/- is paid and lying as outstanding loans and advances with Meru Shipping Lines Private Ltd. in which Sri. Madurai Karthikeyan is the substantial stake holder and Managing Director. In a similar manner, a sum of Rs. 25,32,330/- is lying with Southern Academy of Maritime Studies Private Ltd. in which the role of the Founder and Managing Trustee remains the same. It is undisputed that these persons are interested persons as described in Section 13(3) of the IT Act, 1961. 4.1 The learned DR c....

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.... is the substantial stake holder. In similar manner, a sum of Rs. 25,32,330/- is lying with Southern Academy of Maritime Studies Private Ltd. in which the role of the Founder and Managing Trustee remains the same. It is undisputed that these persons are interested persons as specified person described in Section 13(1)(c) of the IT Act, 1961. 7. It is noted that the learned CIT appeal has not controverted the finding of the AO that Sri. Madurai Karthikeyan, managing director and founder member of the appellant trust has not been benefited by way of receiving advance of Rs. 24,78,316 to Sri Vekkaliamman Builders and Promoters, proprietor concern and an amount of Rs. 7,00,000/- received and lying as outstanding loans and advances with Meru Sh....