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2014 (9) TMI 575 - HC - Income TaxAllowability of exemption u/s 11 Object of Trust - The Tribunal rightly held that the exemption u/s 11 of the Act can be availed of by the Assessee - the objects of the trust are to set up, administer and maintain technical training institution at various places in India for pre-sea and post-sea training for the ships and maritime industry as a Public Charitable Institute for education - That is to provide onboard and offshore training and continuing technical education for Officers, both on the deck and engine side - One of the object was to register with the Director General of Shipping and obtain other necessary approvals at the State and Central levels - the Tribunal concludes that the Assessee is giving training in the 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 u/s 11 can be claimed and bearing in mind the object of the Trust - the Tribunal rightly held that the assessee is entitled to exemption u/s 11 of the Act - This is not a case where the purpose can be said to run a coaching class or a centre - This is an institution which imparts education in the area of pre-sea and post sea training to seamen so as to prepare them for all duties no substantial question of law arises for consideration Decided against revenue.
Issues:
Challenge to order passed by ITAT regarding exemption under section 11 of Income Tax Act 1961. Analysis: The Appellant contested the ITAT's order regarding exemption under section 11 of the Income Tax Act 1961 for the Assessment Year 2007-08. The Appellant argued that the Tribunal erred in confirming the CIT (Appeals) order by disregarding the judgment of the Supreme Court in a specific case. The Appellant's counsel highlighted that the training courses provided were not approved by the Director General of Shipping, and the activities did not qualify as educational or charitable purposes under section 2(15) of the Act. Therefore, the expenses related to pre-sea and post-sea training should not be exempt under section 11. On the contrary, the Respondent's counsel argued that the Tribunal correctly applied the law by considering the activities as educational and charitable. The Respondent was providing training in various areas to seamen, which qualified as educational activities. The Respondent's counsel emphasized that the purpose was not to run a coaching class but to impart education for seamen's duties. The Respondent met the criteria for exemption under section 11, as per the Trust Deed objectives, which included setting up technical training institutions for maritime industry education. The Court examined the orders of the authorities, the Supreme Court's judgment, and a Division Bench's decision. The Court concluded that the Tribunal appropriately assessed the case and correctly determined that the Respondent qualified for exemption under section 11. The Court noted that the training provided by the Respondent was in line with the Trust's objectives and aimed at preparing seamen for their duties. The Court found no error in the Tribunal's decision and dismissed the Appeal, stating that no substantial question of law was raised. The Court upheld the Respondent's eligibility for exemption under section 11, considering the nature of the educational activities provided to seamen.
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