TaxTMI 
TaxTMI 
2025 (12) TMI 1224
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....39;ble Commissioner of Income-tax (Appeal) - National Faceless Appeal Centre, Delhi [ the "L. CIT(A)], your appellant presents the following grounds of appeal, which are without prejudice to each other: 1. In the facts of the case and under the circumstances and in law, the Ld. CIT(A) has erred in upholding the denial of your appellant's claim of exemption u/s 11 of the Income-tax Act, 1961, by the Lit. Income-tax Officer Exemptions), 2141, Mumbai (The Ld. Assessing Officer) while passing the assessment order. 2. In the facts and circumstances of the case and in law, the le CIT(A) has erred in t appreciating your appellant's plea that the order passed by the id. AD in bod in law since it had ignored the directions of the Hon'ble income tax Appellate Tribunal, Mumbai 3. In the facts of the case and under the circumstances and in law, the Ld. CITA) has erred in not appreciating your appellant's plea that the order passed by the Id. AD bad in law since it had not considered the submissions made and evidences find on record by Your Appellant 4. In the facts of the case and under the circumstances and in ise, the L. CIT(A) has grossly ....
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....er before the Ld.CIT(A). The Ld.CIT(A) upheld the impugned assessment order. Being aggrieved, the assessee filed an appeal before us. 4. The Ld.AR argued and filed the paper book containing pages 1 to 499, which is kept on record. The Ld.AR argued that the claim made by the assessee trust is duly denied by the Ld.AO. The Ld. AO has noted the the activities of the assessee in impugned assessment order on pages 2 & 3, which is extracted as below:- "The main objects of the Assessee Trust are as under:- The object and purposes for which the Institute is constituted are a) To promote the scientific development of Marine Engineering in all its branches and in the furtherance of such knowledge; b) To enable Marine Engineers to meet and correspond to facilitate the inter change of ides respecting improvements and improved methods of working machinery, and to publish and communicate information on such objects; c) To uphold the status of members of the Institute by prescribing or holding examination for candidates for election or by requiring standards of knowledge and experience which can be approved; d) To Co-operate with Universiti....
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....n done for ease of reference and highlighting the segregation of object clauses) 1.2 At the outset, guided by our objects, we would like to state that our activities and actual conduct are ushered keeping Maritime Education as the fulcrum of our efforts, which we shall demonstrate 'how' in the ensuing paragraphs. Our activities also cover relief of the needy. But before doing so, it would be apposite, at this juncture, to review and discern the scheme of Maritime Education in India-its overall framework, its various stakeholders, how is Maritime Education regulated and its peculiar features and other nuances. This understanding bears vital notice to appreciate and connect the yeoman efforts of IMEI in the field of Maritime Education, fulfilling the definition of 'charitable purpose' for income-tax." 6. The Ld.AR further argued that the entire assessee's course are affiliated by the Ministry of Shipping, Road Transport and Highways, i.e. Director General of Shipping, Government of India [in short, DG(S)] and assessee is holding certificate bearing No.ENG/EXAM-17(9)/99-II dated 25/02/2010. The said certificate is enclosed at APB pages 94 to 95. He further ....
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....plicable. Question No. 4, therefore, has to be answered in the negative in favour of the assessee and against the Revenue and question No. 5 is answered in the affirmative against the Revenue and in favour of the assessee." where the incidental educational activity aiding maritime learning, in fact, TAR books and MCB exams are statutory functional deleted by the DG(S). These activities are regular education and not trade or commerce. 8. The Ld. DR argued and relied on the order of the revenue authorities. He further stated that the assessee is not an educational trust, but a commercial entity. He also stated that during this impugned assessment year, the assessee earned Rs. 3,03,23,473/- by organizing 'The World Maritime Technical Conference' in 2009 (WMTC). The said amount is duly reflected in the assessee's income APB page 139. So the assessee itself is a profit making organization. He further stated that there is no proper teacher and taught or any degree is awarded by any university. So in any case, it cannot be accepted as an educational institution. The Ld. DR argued that the Ld.CIT(A) relied on the order in the case of New Noble Educational Society vs CCIT-1 and Anr re....
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....pra), education in the narrower meaning of the term as scholastic structured learning is what is meant in Article 21-A, Articles 29-30 and Articles 45 - 46 of the Constitution. As to what is 'education' in the context of the IT Act, was explained in Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234 (SC)/[1976] 1 SCC 254 in the following terms: "5. The sense in which the word "education" has been used in section 2(15) is the instruction, schooling or training given to the young in preparation for the work of life. It also connotes the whole course of scholastic instruction which a person has received. The word "education" has not been used in that wide and extended sense, according to which every acquisition of further knowledge constitutes education. According to this wide and extended sense, travelling is education, because as a result of travelling you acquire fresh knowledge. Likewise, if you read newspapers and magazines, see pictures, visit art galleries, museums and zoos, you thereby add to your knowledge....All this in a way is education in the great school of life. But that is not the sense in which the word "education" is used in clause (15) of ....
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....e's balance sheet and have been entirely utilised for educational purposes. Therefore, following the ratio laid down by the Hon'ble Supreme Court in Queen's Educational Society (supra), the mere generation of surplus does not render the assessee's activities commercial in nature, so long as the surplus is applied towards educational objects. We also find that the issue is no longer res integra, having already been considered and decided by the coordinate Bench of the ITAT, Mumbai in the case of Maritime Training & Research Foundation v. DDIT(E)-1(1) in ITA No. 7247/Mum/2012 for A.Y. 2009- 10, vide order dated 22.08.2016. The relevant extract of the said order, appearing at pages 5 to 7, is reproduced hereunder:- "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 cadets and not education within the meaning of section 2(15) of the Act and motive of the assessee was earning profit from the said activi....
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....s to prepare them for all duties. In such circumstances, we do not find that the concurrent findings of fact are vitiated by error of law apparent on the face of the record or perversity enabling us to entertain this Appeal. There is no substantial question of law. The Appeal is therefore dismissed with no order as to costs." 8. On perusal of the above judgement it is revealed that the assessee trust was set up to administer and maintain technical training institution at various places in India for pre-sea and post-sea training for the ships and maritime industry and was engaged to provide on-board and offshore training and also seems to be education and accordingly, held that there is no substantial question of law and dismissed the appeal of the revenue. We find that the case of assessee is squarely covered by the ratio laid down by the jurisdictional High Court in the case of Samudra Institute of Maritime Studies Trust,(supra). Respectfully following the above mentioned judgment of Hon'ble High Court we set aside the order of the ld.CIT(A) and direct the AO to allow the benefit an enumerated under section 11 of the Act by deleting the addition 9. In the result,....