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TMI Blog2014 (6) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... men - merely because the courses are not approved by the DG Shipping or merely because there is huge surplus in the non-approved courses than the approved courses cannot be a ground for denial of exemption u/s 11 as long as the Trust is imparting education as per the objects of the Trust – thus, there was no infirmity in the order of the CIT(A) – Decided against Revenue. - ITA No. 5760/Mum/2010 - - - Dated:- 30-11-2011 - Shiri D. K. Agarwal, JM And Shri R. K. Panda, AM,JJ. For the Appellant : Shri Goli Sriniwas Rao For the Respondent : Shri S. V. Pathak Shri Nikhil Pathak ORDER Per R. K. Panda (AM) : This appeal filed by the Revenue is directed against the order dated 31.03.2010 passed by the Ld. CIT(A)-1, Mumbai relating to Assessment Year 2007-08. 2. Facts of the case, in brief, are that the assessee trust i.e. Samundra Institute of Maritime Studies Trust was established on 06.01.2003 as a Public Charitable Trust under the Bombay Charitable Trust Act, 1950. It was established for the purposes of imparting education in the area of Post Sea and Pre Sea training to seamen. The Trust is also registered with the Director General of Shipping, Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation as contemplated u/s.2(15) of the I.T. Act. Relying on the decision of Hon'ble Patna High Court in the case of Bihar Institute of Mining and Mine Surveying Vs. CIT reported in 208 ITR 608 and the decision of the Hon'ble Supreme Court in the case of Sole Trustee Loka Shikshana Trust vs. CIT reported in 101 ITR 234, the decision in the case of Mazgaon Docks Ltd. vs. CIT reported in 34 ITR 368 at 376 and various other decisions he held that the activities of the assessee in connection with the conducting of commercial courses are clearly business activities within the meaning of sec.2(13) of the I.T. Act., since all the elements of business are present in these courses. He accordingly rejected the claim of exemption u/s.11 of the I.T. Act. 5. Before the Ld. CIT(A) the assessee made elaborate arguments. The dictionary meaning of education as explained by various courts was brought to the notice of the Ld. CIT(A). It was submitted that the Revenue has never alleged that there has been any distribution of profit or that the profits made are not being utilized for the objects of the Trust. It was also submitted that it is not the case of the Revenue that the courses offere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned for other than the purpose of object of the trust. As the word education has not been defined any where in the IT Act or IT Rules. Hence we have to take meaning of the word Education in general common parlance or judicial precedence available in this regard. The main object of the trust as per the trust deed is to set up, administer and maintain technical training institutes at various places in India for Pre Sea and Post Sea Training for the shipping and Maritime Industry as a Public Charitable Trust for education in this connection to provide on board and off shore training and continuing technical education training for officers both on deck and engine side. The A.O s this observation that as the appellant trust is earning profit and hence the appellant trust cannot be given exemption u/s 11 of the IT Act is completely contrary to the provisions of law. The appellant trust is running various educational shipping programmes i.e. Pre Sea and Post Sea Training, even if the trust derived profit from running such courses, then the same has been utilized for the object of the trust. The A.O. has no where pointed out that the profit so earned is utilized by the trust other tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es conducted by the assessee are of the nature of Private Tuition and, therefore, cannot entitle the assessee trust to be treated as an educational institution. He according supported the order of the AO. 8. The Ld. Counsel for the assessee on the other hand, referring to the decision of the Hon'ble Bombay High Court in the case of Director of Income Tax(Exemptions) vs. National Safety Counsel reported in 305 ITR 257 submitted that the Hon'ble High Court in the said decision has upheld the order of the Tribunal in allowing the claim of exemption u/s.10(22) of the I.T. Act to the income of the society which was imparting education in regard to the safety, protection and health among industrial workers, to organize and conduct programmes, lectures, conferences and other activities for promoting free discussions on all matters and questions relating to safety measures, procedures and research etc. In the said decision, the Hon'ble Bombay High Court has considered the decision of the Hon'ble Supreme Court in the case of Sole Trustee Loka Shikshana Trust (supra). 8.1 Referring to the decision of the Hon'ble Calcuatta High Court in the case of CIT vs. Doon Found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. Now when the institute like that of the assessee trust are established, these courses are available in India. Relying on various other decisions the Ld. Counsel for the assessee while supporting the order of the Ld. CIT(A) submitted that the grounds raised by the Revenue are to be dismissed. 9. We have considered the rival arguments made by both the sides, perused the orders of the AO and the Ld. CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited by both the sides. There is no dispute to the fact that during the impugned assessment year the assessee trust has conducted two types of courses which could be broadly classified into two types i.e. one set of courses duly approved and recognized by DG Shipping and the other set of courses which are not approved and recognized by the DG Shipping. According to the AO, the income from the courses not approved and recognized by the DG Shipping is far more than the profits from the courses approved and recognized by the DG Shipping. Further, the entire institution according to the AO is being run with the sole motive of earning profit and an attempt has been made by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and extended sense according to which every acquisition of further knowledge constitutes education. 9.3 We find the Hon'ble Calcutta High Court in the case of Doon Foundation (supra) has held that if a society primarily engages itself in educational activities or runs a school or college, it is entitled to claim exemption 10(22). It is not necessary that in order to claim the exemption, the institution should be affiliated to any university or board. 9.4 We find the Hon'ble Bombay High Court in the case of National Safety Council has held as under (short notes) :- The assessee was a society registered under the Societies Registration Act, 1860, as well as the Bombay Public Trust Act, 1950, with the principal object of educating the public concerning safety, etc. The memorandum of the assesseesociety provided for utilization of the income and property solely for the promotion of the aims and objects of the assessee and no part of it would be transferred directly or indirectly by way of dividend, bonus or profit to the members of the council. Rule 2 of the rules and regulations of the assessee laid down that the assessee would be an independent, non-commercial, no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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