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TMI Blog2022 (4) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... ng as outstanding loans and advances with Meru Shipping Lines Private Ltd. and likewise, a sum of is lying with Southern Academy of Maritime Studies Private Ltd as a substantial stake holders being benefited persons referred to in section 13(3) of the act. Hon ble Juridictional Madras High Court in the case of St. Xavier Educational Trust [ 2021 (6) TMI 143 - MADRAS HIGH COURT] exemption has delivered a verdict that the denial of exemption under section 11 should only be too the extent of income which is violative of section 13(1)(d) and total denial of exemption and accordingly revenue was to only forfeit exemption under section 11 in respect of opening payments. Madras High Court in the case of Ms. V.G.P. Foundation [ 2002 (10) TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aring a total income of nil. The case was selected for scrutiny throuqh CASS and notice u/s 143(2) of the Act was issued accordingly. During the course of scrutiny In response, the authorized representative Mr. R. Govindan, the Books of accounts produced were examined by the assessing officer (in short the AO ). After considering the details and documents and discussing the case with the authorized representative, the assessment was completed determining the total income at ₹ 2,52,28,790/- on 25.02.2013 u/s 143(3) of the Act. 3. Aggrieved by the order, the assessed preferred appeal before the CIT appeal who has deleted the addition by observing as under: The statement of accounts, grounds of appeal, written submission, report o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act by the appellant. Regarding the transaction with M/s. Meru Shipping Lines Pvt. Limited (MSLPL), the AO himself admitted that the marine students of the Trust undergo virtual and practical onboard training in the vessel owned by the Company. The AO also admitted that the company M/s. MSLPL provides employment to the marine students passed out of colleges of the Trust and the amount paid to them is adjusted against the charges to the company. In fact the Trust is the only beneficiary and not the company and the decision of the AO in this regard is rejected devoid of merit. Regarding the transactions with M/s. SAMS Pvt. Limited, the AR stated that the Trust has been using the infrastructure facilities of the M/s. SAMPL without any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance to Sri Vekkaliamman Builders and Promoters for which the Managing Trustee and Founder of the Trust Sri. Madurai Karthikeyan is the Proprietor. Similarly an amount of ₹ 7,00,000/- is paid and lying as outstanding loans and advances with Meru Shipping Lines Private Ltd. in which Sri. Madurai Karthikeyan is the substantial stake holder and Managing Director. In a similar manner, a sum of ₹ 25,32,330/- is lying with Southern Academy of Maritime Studies Private Ltd. in which the role of the Founder and Managing Trustee remains the same. It is undisputed that these persons are interested persons as described in Section 13(3) of the IT Act, 1961. 4.1 The learned DR contended that the AO has categorically held based on the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anner, a sum of ₹ 25,32,330/- is lying with Southern Academy of Maritime Studies Private Ltd. in which the role of the Founder and Managing Trustee remains the same. It is undisputed that these persons are interested persons as specified person described in Section 13(1)(c) of the IT Act, 1961. 7. It is noted that the learned CIT appeal has not controverted the finding of the AO that Sri. Madurai Karthikeyan, managing director and founder member of the appellant trust has not been benefited by way of receiving advance of ₹ 24,78,316 to Sri Vekkaliamman Builders and Promoters, proprietor concern and an amount of ₹ 7,00,000/- received and lying as outstanding loans and advances with Meru Shipping Lines Private Ltd. and li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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