9911796707
TMI Blog2019 (10) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... 961 (in short 'Act'). In this case, the assessee has filed the application in Form No.10A seeking registration u/s 12AA of the Act. In the application, the assessee Trust stated that it is running the academy to impart training in maritime engineering in the name and style of Sea World Maritime Academy. The Ld.CIT observed that the assessee Trust has entered into an agreement with the Australian Maritime College, Australia for training the aspirants leading to the award of the following Diploma Certificates (i) Advanced Diploma of Applied Science awarded by the University of Tasmania, Australia. (ii) Certificate of competency as Watch Keeper Deck issued by the Australian Maritime Safety Authority. 2.1. Further the Trust entered into an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ying Vs. CIT [208 ITR 608] and the decision of Hon'ble High Court of Uttarakhand in the case of CIT Vs. National Institute of Aeronautical Engineering Educational Society [315 ITR 428] and accordingly rejected the registration u/s 12AA of the Act. The Ld.CIT further examined the income and expenditure account and found that the assessee trust has collected the fees for various courses for the period ended 31.03.2014 as under : DME Course Fee - Rs. 9,70,000/- GES Course Fee - Rs. 41,90,000/- GME Course Fee - Rs. 19,50,000/- The Ld.CIT observed from the income and expenditure account, the net surplus of Rs. 9,66,406/- which gave the impression to the Ld.CIT that the academy is being run on commercial basis, charging substantial fee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gross receipts and more than 85% was spent for charitable purposes, thus, argued that there is no profit motive involved in the activities of the assessee trust. The Ld.AR argued that as per the objectives of the Trust, it is a charitable Trust imparting education, hence, requested set aside the order of the Ld.CIT and to grant the registration u/s 12A of the act. 5. On the other hand, the Ld.DR argued that the institution is running on commercial lines and it is charging huge fee from the students as evidenced from the Profit & Loss account filed by the assessee. Further, the Ld.DR argued that it is purely conducting coaching classes for their students in the name of Sea World Maritime Academy and training their students. The institute i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al and economic development. In order to achieve the have objects the trust intends to establish and run the maritime Institution in the name of Sea World Maritime Academy at Visakhapatnam. Smt. K Saritha and Sri K.V.S.Sridhar will be directors for the Institute and both of them are authorised to open any account with any bank to be mutually decided and they will be authoñsed to operate the account jointly and or severally. The academy will run under KANDUKURI BANGARAMMA EDUCATIONAL TRUST and will not carry out any activity with the intention of earning profit. b) To develop self discipline, based on social behaviour which will lead to support the society and to become progressive citizen. c) To develop leadership qualities and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts Commission or by the Govt. of India, or the state Boards for the courses offered by the assessee. The AMC is Australian Maritime College, Australia, which is not affiliated to any Indian Universities and it is stated to be affiliated to the University of Tasmania. Similarly, New Zealand Maritime school is also awarding the certificates. Sea World Maritime Academy is approved institution of AMC and New Zealand Maritime school as per the letters placed in paper book page No.16 to 19, but not an affiliated institution of the universities in India. Therefore, it is observed from the facts of the case that the assessee is a coaching institution which is not imparting any formal education resulting in degrees awarded by the recognized schools ..... X X X X Extracts X X X X X X X X Extracts X X X X
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