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TMI Blog2012 (10) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... ion imparted by the assessee Institute in India is not in the nature of coaching or tuition. The Institute at London is an Institute established by a Royal Charter and recognized world-wide as the nodal agency of design, improving and controlling the profession of ship-broking. The examinations conducted by the Institute to enable the registered students to enroll as members of the Institute require continuous study for a period of three to four years. What is imparted by the assessee Institute in India is professional education like chartered accountancy, law, architecture, etc. The syllabus prescribed for the examination covers almost all areas of shipping industry including maritime laws. Thus here is nothing on record to show that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng throughout the world. The Institute is established in London on the strength of a Royal Charter issued by the Queen of Great Briton. ICS, London has permitted establishment of Institutes in various parts of the world to work for the objects of the Institute. The assessee is such an Institute established in India by way of getting registered as per the Municipal Laws. ICS is by and large taking care of the professional education of shipbroking. Students aspiring of becoming the members of the Institute have to pass a number of examinations. Once they qualify in the examinations and undergo the necessary training, they will be enrolled as the members of the Institute, which enables them to apply for different positions in the shipping indu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... institute is a tutor running a coaching centre on commercial terms. Accordingly, he held that the activities of the institute cannot be called as educational. On the basis of the above observation, he cancelled the registration with effect from 1-4-2009, relevant to the assessment year 2009-10 onwards. It is against the above order that the assessee has come in appeal before us. 4. We heard both sides in detail. Shri S. Sathiyanarayanan, the learned counsel appearing for the assessee, explained the legal status and functions of the Institute in detail. He explained that the Indian Institute is affiliated to the ICS, London only for academic purposes and international accredition and there is no commercial functions shared between ICS, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income received by the assessee Institute needs to be shared with its counterpart in London. Referring to the Memorandum of association of the assessee trust, the learned Commissioner of Income-tax contended that in the event of dissolution of the assessee institution, all the assets will bestow upon the London Institute and therefore it is necessary to see that the assessee is basically an agent of a foreign institute and therefore cannot be construed as carrying on charitable activities in India. The learned Commissioner of Income-tax contended that the registration under section 12AA is granted only for institutions carrying on charitable activities within the territories of India. 6. In support of his arguments the learned Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al affiliation and international recognition are necessary. Therefore, almost all the modern professions in the world are having similar arrangements of affiliation and recognition. On the ground of affiliation there is no reason to hold that the assessee is an agent or branch of a foreign Institute. 8. The programme of professional education imparted by the assessee Institute in India is not in the nature of coaching or tuition. The Institute at London is an Institute established by a Royal Charter and recognized world-wide as the nodal agency of design, improving and controlling the profession of ship-broking. Ship-broking is recognised world over as the only profession engaged in dealing with all aspects of shipping industry. The ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure is incurred only for the purpose for which the Institute is established. 9.1 In the facts and circumstances of the case we find that the decision of the Hon'ble Madras High Court rendered in the case of the Chartered Accountants Study Circle Prince Areade (supra) is applicable to the present case. In the above judgment, their Lordships have held in paragraphs 8 and 9 as follows:- 8. The objects of the assessee-trust, as referred to above, are among other things to conduct periodical meetings on professional subjects and to achieve the said objects, the assessee is publishing books, booklets, etc. on professional subjects, and selling the same only on the subjects related to audit and not on any other subject. Consequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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