GURSHIP EDUCATION TRUST, MUMBAI v. DIT (E), MUMBAI

ITA 4788/MUM/2009 | misc
Pronouncement Date: 28-09-2011 | Result: Dismissed

Appeal Details

RSA Number 478819914 RSA 2009
Assessee PAN AABTG0635L
Bench Mumbai
Appeal Number ITA 4788/MUM/2009
Duration Of Justice 2 year(s) 1 month(s) 10 day(s)
Appellant GURSHIP EDUCATION TRUST, MUMBAI
Respondent DIT (E), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 28-09-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted G
Tribunal Order Date 28-09-2011
Date Of Final Hearing 21-09-2011
Next Hearing Date 21-09-2011
Assessment Year misc
Appeal Filed On 18-08-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH: MUMBAI BEFORE SHRI P.M. JAGTAP ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR JUDICIAL MEMBER ITA NO.4788/MUM/2009 GURSHIP EDUCATION TRUST 2 PREM SUDHA PLOT NO.136-B SHER-E-PUNJAB SOCIETY MAHAKALI CAVES ROAD ANDHERI (E) MUMBAI -400 093 ....... APPELLANT VS DIRECTOR OF INCOME-TAX (EXEMPTION) 6TH FLOOR PIRAMAL CHAMBERS PAREL MUMBAI -400 012 ..... RESPONDENT PAN: AABTG 0635 L APPELLANT BY: SHRI MEHUL SHAH RESPONDENT BY: SHRI PAVAN VED DATE OF HEARING: DATE OF PRONOUNCEMENT: 21.09.2011 ..09.2011 O R D E R PER R.S. PADVEKAR JM: IN THIS APPEAL THE ASSESSEE HAS CHALLENGED THE IMPU GNED ORDER OF THE LD. DIRECTOR OF INCOME-TAX (EXEMPTION) (IN S HORT DI (EXMPT.) MUMBAI PASSED U/S.12AA R.W.S. 12A OF THE INCOME-TAX ACT 1961 DATED 30.06.2009 DENYING THE REGISTRATION TO THE A SSESSEE AS A CHARITABLE INSTITUTION. THE ASSESSEE HAS TAKEN THE FOLLOWING GROUND:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW LEARNED DIRECTOR OF INCOME-TAX (EXEMPTION) ERR ED IN ITA 4788 /MUM/2009 GURSHIP EDUCATION TRUST 2 REFUSING REGISTRATION OF THE TRUST UNDER SECTION 12 AA CONTENDING THAT ACTIVITIES OF EDUCATION CARRIED OUT BY THE TRUST ARE NOT IN NATURE OF EDUCATIONAL ACTIVITIES W ITHIN THE MEANING OF SECTION 2(15) OF THE INCOME-TAX ACT 196 1 WITHOUT APPRECIATING THE FACT THAT THE APPELLANT WA S PROVIDING TRAINING AS PER DIRECTIONS OF DIRECTOR GE NERAL OF SHIPPING GOVERNMENT OF INDIA. 2. BRIEFLY STATED THE FACTS ARE AS UNDER. THE ASSE SSEE IS REGISTERED TRUST. IT IS CLAIMED BY THE ASSESSEE THAT IT IS IM PARTING TRAINING TO MERCHANT NAVY CADETS AT SUBSIDIZED RATES WITH AN OB JECT TO MAKE NO MATERIAL SURPLUS (SERVICE). IT IS FURTHER CLAIMED BY THE ASSESSEE THAT THE ASSESSEE IS CONDUCTING THE ACTIVITY OF IMPARTIN G TRAINING AS PER THE DIRECTIONS OF DIRECTOR GENERAL OF SHIPPING GOVERNM ENT OF INDIA VIDE HIS ORDER DATED 11.09.2002. THE ASSESSEE CLAIMS TH AT AS THE ASSESSEES ACTIVITIES ARE CHARITABLE IN NATURE AND HENCE ITS INCOME IS EXEMPT U/S.11 OF THE I.T. ACT. THE ASSESSEE FILED AN APPLICATION FOR REGISTRATION AS A CHARITABLE TRUST/INSTITUTION ON 1 7.12.2008 U/S.12AA OF THE I.T. ACT 1961 BEFORE THE DI (EXMPT.) THE ASSESSEE STATED THAT IT IS CONDUCTING SHORT-PROGRAMMES FOR PASSENGER-SHIP F AMILIARISATION AND THE ASSESSEE ALSO SUBMITTED THE DETAILS OF THE COURSES AND ITS COMPANY STRUCTURE WHICH IS REPRODUCED IN THE IMPUGN ED ORDER BY THE DI (EXMPT.) THE SAME ARE AS UNDER:- COURSE DAYS SCHEDULE FEES IN ` `` ` 1 P.S.T. (DGS APPROVED) 3 DAYS THU 1500/- 2 PSSR (DGS APPROVED) 3 DAYS MON 1200/- 3 EFA (DGS APPROVED) 2 & DAYS MON 800/- 4 OTFC (DGS APPROVED) 5 DAYS MON-FRI 2500/- 5 PASSENGER SHIP FAMILIARISATION (PARA1 TO 3) (DGS APPROVED) 3 DAYS THU 2500/- 3. THE ASSESSEE STATED THAT THE ACTIVITY OF IMPARTI NG THE TRAINING TO THE MERCHANT NAVY CADETS IS A CHARITABLE ACTIVITY A ND HENCE THE ASSESSEE MAY BE RECOGNIZED AS A CHARITABLE TRUST U/ S.11 OF THE ACT. ITA 4788 /MUM/2009 GURSHIP EDUCATION TRUST 3 THE LD. DI (EXMPT.) WAS NOT IMPRESSED WITH THE CLAI M OF THE ASSESSEE. IN THE OPINION OF THE LD. DI (EXMPT.) THE ASSESSEE IS MERELY CONDUCTING THE COACHING CLASSES AND THERE IS COMMERCIALITY IN ITS ACTIVITY. THE LD. DI (EXMPT.) REFERRED TO THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF SOLE TRUSTEE LOKA SHIKSHANA TRUST V S. CIT MYSORE 101 ITR 234 AND REJECTED/DISMISSED THE APPLICATION OF T HE ASSESSEE FOR REGISTRATION. NOW THE ASSESSEE IS IN APPEAL BEFOR E US. 4. WE HAVE HEARD RIVAL SUBMISSIONS OF THE PARTIES A ND PERUSED THE RECORDS. THE ASSESSEE HAS ALSO FILED THE PAPER BOO K WHICH IS PLACED ON RECORD. THE LD. COUNSEL EXPLAINED THE NATURE OF THE ACTIVITY CARRIED OUT BY THE ASSESSEE. THE MAIN PLEA OF THE LD. COUNSEL FOR THE ASSESSEE IS THAT THE ASSESSEE IS A TRUST AND THE TR AINING IS IMPARTED TO THE MERCHANT NAVY CADETS UNDER THE GUIDANCE OF THE DG SHIPPING GOVT. OF INDIA. HE REFERRED TO THE DIFFERENT NOTIF ICATIONS AND GUIDELINES ISSUED BY THE DG SHIPPING. HE ALSO DISTINGUISHED T HE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF SOLE TRUSTEE ( SUPRA) AND SUBMITS THAT THE FACTS IN THE SAID CASE ARE NOT APP LICABLE TO THE ASSESSEES CASE. THE LD. COUNSEL ALSO TRIED TO IMP RESS US BY STATING THAT THE ASSESSEE HAS NO MUCH MORE SURPLUS FROM THO SE ACTIVITY AND THE ASSESSEE HARDLY GETS 10% TO 15% SURPLUS AFTER E XPENDITURE. HE THEREFORE PLEADED FOR GRANTING THE REGISTRATION U/ S.12AA OF THE ACT. WE HAVE ALSO HEARD THE LD. D.R. 5. WE FIND THAT THE ASSESSEE IS CONDUCTING COACHING -TYPE CLASSES TO THE CADETS JOINING MERCHANT NAVY. THOSE CLASSES AR E FOR THE DURATION OF THE 2 DAYS 3 DAYS AND 5 DAYS. SO FAR AS GUIDE LINES ISSUED BY DG OF SHIPPING GOVT. OF INDIA THESE GUIDELINES ARE G IVEN FOR FRAMING OUT THE COURSE AND WHICH IS REQUIRED FOR CADETS JOINING MERCHANT NAVY. IT APPEARS THAT THE SAID COURSE OR COACHING IS COMPULS ORY FOR THE CADETS FOR JOINING THE SHIP. ON THE PERUSAL OF THE BALANC E-SHEET OF THE ASSESSEE FOR THE FINANCIAL YEAR 2007-08 PAGE NO.25 OF P/B WE FIND THAT THERE IS NO INFRASTRUCTURE OR ANY ASSET AND ON LY ADVANCES OF CASH ITA 4788 /MUM/2009 GURSHIP EDUCATION TRUST 4 AND BANK BALANCES ARE SHOWN. THOUGH IT IS ARGUED T HAT THE CHARITABLE ACTIVITIES ARE CARRIED OUT BY THE TRUST AND TRUST I S CREATED AS PER REQUIREMENT OF THE MINISTRY OF SHIPPING GOVT. OF I NDIA. BUT IN OUR OPINION MERE ENTITY AS A TRUST IS NOT ELIGIBLE TO CLAIM THE EXEMPTION OF SEC. 11. RELEVANT PART OF SEC. 11 READS AS UNDER:- (1) SUBJECT TO THE PROVISIONS OF SECTIONS 60 TO 63 THE FOLLOWING INCOME SHALL NOT BE INCLUDED IN THE TOTAL INCOME OF THE PREVIOUS YEAR OF THE PERSON IN RECEIPT OF THE INCOME [(A) INCOME DERIVED FROM PROPERTY HELD UNDER TRU ST WHOLLY FOR CHARITABLE OR RELIGIOUS PURPOSES TO THE EXTENT TO WHICH SUCH INCOME IS APPLIED TO SUCH PURPOSES IN INDIA; AND WHERE ANY SUCH INCOME IS ACCUMULATED OR SET APART FOR APPLIC ATION TO SUCH PURPOSES IN INDIA TO THE EXTENT TO WHICH THE INCOM E SO ACCUMULATED OR SET APART IS NOT IN EXCESS OF [FIFT EEN] PER CENT OF THE INCOME FROM SUCH PROPERTY; (B) INCOME DERIVED FROM PROPERTY HELD UNDER TRUST IN PART ONLY FOR SUCH PURPOSES THE TRUST HAVING BEEN CREATED BEFORE THE COMMENCEMENT OF THIS ACT TO THE EXTENT TO WHICH SU CH INCOME IS APPLIED TO SUCH PURPOSES IN INDIA; AND WHERE ANY S UCH INCOME IS FINALLY SET APART FOR APPLICATION TO SUCH PURPOS ES IN INDIA TO THE EXTENT TO WHICH THE INCOME SO SET APART IS NOT IN EXCESS OF [FIFTEEN] PER CENT OF THE INCOME FROM SUCH PROPERTY ; (C) INCOME [DERIVED] FROM PROPERTY HELD UNDER TRUS T (I) CREATED ON OR AFTER THE 1ST DAY OF APRIL 1952 FOR A CHARITABLE PURPOSE WHICH TENDS TO PROMOTE INTERNATI ONAL WELFARE IN WHICH INDIA IS INTERESTED TO THE EXTENT TO WHICH SUCH INCOME IS APPLIED TO SUCH PURPOSES OUTSIDE IND IA AND (II) FOR CHARITABLE OR RELIGIOUS PURPOSES CREATED BEFORE THE 1ST DAY OF APRIL 1952 TO THE EXTENT TO WHICH SUCH INC OME IS APPLIED TO SUCH PURPOSES OUTSIDE INDIA: PROVIDED THAT THE BOARD BY GENERAL OR SPECIAL ORDER HAS DIRECTED IN EITHER CASE THAT IT SHALL NOT BE INCLUD ED IN THE TOTAL INCOME OF THE PERSON IN RECEIPT OF SUCH INCOME; [(D) INCOME IN THE FORM OF VOLUNTARY CONTRIBUTIONS MADE WITH A SPECIFIC DIRECTION THAT THEY SHALL FORM PART OF THE CORPUS OF THE TRUST OR INSTITUTION.] [EXPLANATION.FOR THE PURPOSES OF CLAUSES (A) AND (B) (1) IN COMPUTING THE [FIFTEEN] PER CENT OF THE I NCOME WHICH MAY BE ACCUMULATED OR SET APART ANY SUCH VOLUNTARY CONTRI BUTIONS AS ARE REFERRED TO IN SECTION 12 SHALL BE DEEMED TO BE PART OF THE INCOME; ITA 4788 /MUM/2009 GURSHIP EDUCATION TRUST 5 (2) IF IN THE PREVIOUS YEAR THE INCOME APPLIED T O CHARITABLE OR RELIGIOUS PURPOSES IN INDIA FALLS SHORT OF EIGHTY-F IVE PER CENT OF THE INCOME DERIVED DURING THAT YEAR FROM PROPERTY H ELD UNDER TRUST OR AS THE CASE MAY BE HELD UNDER TRUST IN PART BY ANY AMOUNT (I) FOR THE REASON THAT THE WHOLE OR ANY PART OF T HE INCOME HAS NOT BEEN RECEIVED DURING THAT YEAR OR (II) FOR ANY OTHER REASON THEN (A) IN THE CASE REFERRED TO IN SUB-CLAUSE (I) SO MUCH OF THE INCOME APPLIED TO SUCH PURPOSES IN INDIA DURING THE PREVIOUS YEAR IN WHICH THE INCOME IS RECEIVED OR DU RING THE PREVIOUS YEAR IMMEDIATELY FOLLOWING AS DOES NOT EXC EED THE SAID AMOUNT AND (B) IN THE CASE REFERRED TO IN SUB-CLAUSE (II) SO MUCH OF THE INCOME APPLIED TO SUCH PURPOSES IN INDIA DURING THE PREVIOUS YEAR IMMEDIATELY FOLLOWING THE PREVIOUS YE AR IN WHICH THE INCOME WAS DERIVED AS DOES NOT EXCEED THE SAID AMOUNT MAY AT THE OPTION OF THE PERSON IN RECEIPT OF TH E INCOME (SUCH OPTION TO BE EXERCISED IN WRITING BEFORE THE EXPIRY OF THE TIME ALLOWED UNDER SUB-SECTION (1) OF SECTION 139 [* * * ] FOR FURNISHING THE RETURN OF INCOME) BE DEEMED TO BE INCOME APPLIE D TO SUCH PURPOSES DURING THE PREVIOUS YEAR IN WHICH THE INCO ME WAS DERIVED; AND THE INCOME SO DEEMED TO HAVE BEEN APPL IED SHALL NOT BE TAKEN INTO ACCOUNT IN CALCULATING THE AMOUNT OF INCOME APPLIED TO SUCH PURPOSES IN THE CASE REFERRED TO I N SUB-CLAUSE (I) DURING THE PREVIOUS YEAR IN WHICH THE INCOME I S RECEIVED OR DURING THE PREVIOUS YEAR IMMEDIATELY FOLLOWING AS THE CASE MAY BE AND IN THE CASE REFERRED TO IN SUB-CLAUSE (II) DURING THE PREVIOUS YEAR IMMEDIATELY FOLLOWING THE PREVIOU S YEAR IN WHICH THE INCOME WAS DERIVED. (1A) FOR THE PURPOSES OF SUB-SECTION (1) (A) WHERE A CAPITAL ASSET BEING PROPERTY HELD UND ER TRUST WHOLLY FOR CHARITABLE OR RELIGIOUS PURPOSES IS TRANSFERRE D AND THE WHOLE OR ANY PART OF THE NET CONSIDERATION IS UTILI SED FOR ACQUIRING ANOTHER CAPITAL ASSET TO BE SO HELD THEN THE CAPITAL GAIN ARISING FROM THE TRANSFER SHALL BE DEEMED TO H AVE BEEN APPLIED TO CHARITABLE OR RELIGIOUS PURPOSES TO THE EXTENT SPECIFIED HEREUNDER NAMELY: (I) WHERE THE WHOLE OF THE NET CONSIDERATION IS UT ILISED IN ACQUIRING THE NEW CAPITAL ASSET THE WHOLE OF SUCH CAPITAL GAIN ; (II) WHERE ONLY A PART OF THE NET CONSIDERATION IS UTILISED FOR ACQUIRING THE NEW CAPITAL ASSET SO MUCH OF SUCH CA PITAL ITA 4788 /MUM/2009 GURSHIP EDUCATION TRUST 6 GAIN AS IS EQUAL TO THE AMOUNT IF ANY BY WHICH TH E AMOUNT SO UTILISED EXCEEDS THE COST OF THE TRANSFERRED ASS ET; (B) WHERE A CAPITAL ASSET BEING PROPERTY HELD UND ER TRUST IN PART ONLY FOR SUCH PURPOSES IS TRANSFERRED AND THE WHOL E OR ANY PART OF THE NET CONSIDERATION IS UTILISED FOR ACQUI RING ANOTHER CAPITAL ASSET TO BE SO HELD THEN THE APPROPRIATE FRACTION OF THE CAPITAL GAIN ARISING FROM THE TRANSFER SHALL BE DEE MED TO HAVE BEEN APPLIED TO CHARITABLE OR RELIGIOUS PURPOSES TO THE EXTENT SPECIFIED HEREUNDER NAMELY: (I) WHERE THE WHOLE OF THE NET CONSIDERATION IS UT ILISED IN ACQUIRING THE NEW CAPITAL ASSET THE WHOLE OF THE A PPROPRIATE FRACTION OF SUCH CAPITAL GAIN; (II) IN ANY OTHER CASE SO MUCH OF THE APPROPRIATE FRACTION OF THE CAPITAL GAIN AS IS EQUAL TO THE AMOUNT IF ANY BY WHICH THE APPROPRIATE FRACTION OF THE AMOUNT UTILISED FOR ACQ UIRING THE NEW ASSET EXCEEDS THE APPROPRIATE FRACTION OF THE C OST OF THE TRANSFERRED ASSET. EXPLANATION.IN THIS SUB-SECTION (I) APPROPRIATE FRACTION MEANS THE FRACTION WHIC H REPRESENTS THE EXTENT TO WHICH THE INCOME DERIVED FROM THE CAPITAL ASSET TRANSFERRED WAS IMMEDIATELY BEFORE SUCH TRANSFER AP PLICABLE TO CHARITABLE OR RELIGIOUS PURPOSES; (II) COST OF THE TRANSFERRED ASSET MEANS THE AGG REGATE OF THE COST OF ACQUISITION (AS ASCERTAINED FOR THE PURPOSES OF SECTIONS 48 AND 49) OF THE CAPITAL ASSET WHICH IS THE SUBJECT O F THE TRANSFER AND THE COST OF ANY IMPROVEMENT THERETO WITHIN THE MEANING ASSIGNED TO THAT EXPRESSION IN SUB-CLAUSE (B) OF CL AUSE (1) OF SECTION 55; (III) NET CONSIDERATION MEANS THE FULL VALUE OF THE CONSIDERATION RECEIVED OR ACCRUING AS A RESULT OF THE TRANSFER OF THE CAPITAL ASSET AS REDUCED BY ANY EXPENDITURE INCURRED WHOLLY AND EXCLUSIVELY IN CONNECTION WITH SUCH TRANSFER.] (1B) . (2). (3). 6. BEFORE CLAIMING A EXEMPTION U/S.11 SOME CONDITI ONS MUST BE FULFILLED AND FOLLOWING TWO CONDITIONS GO TO THE RO OTS OF THE ENTIRE MATTER:- (I) THE INCOME SHOULD BE EARNED FROM THE PROPERTY W HICH IS HELD WHOLLY FOR CHARITABLE OR RELIGIOUS PURPOSES AN D INCOME IS ALSO TO BE APPLIED FOR THE RELIGIOUS OR C HARITABLE ITA 4788 /MUM/2009 GURSHIP EDUCATION TRUST 7 PURPOSE IN INDIA AND IF THE INCOME IS ACCUMULATED T HE SAME IS PERMISSIBLE TO THE EXTENT OF THE 15%; AND (II) THERE SHOULD NOT BE ANY COMMERCIALITY IN THE OBJECT OF THE TRUST. 7. WE FIND THAT THE TRUSTEES ARE TAKING REMUNERATIO N FROM THE ASSESSEE-TRUST ( PAGE NO.26 OF THE PAPER-BOOK) AND WHICH IS REFLECTED IN THE INCOME AND EXPENDITURE A/C. FOR THE FINANCIA L YEAR 2007-08. IN THE CASE OF SOLE TRUSTEE LOKA SHIKSHANA TRUST V S. CIT MYSORE 101 ITR 234 WHILE INTERPRETING THE WORD EDUCATION A PPEARING IN SUB- SECTION (15) OF SEC.2 OF THE ACT THE HONBLE SUPREM E COURT HELD AS UNDER:- THE SENSE IN WHICH THE WORD EDUCATION HAS BEEN USED IN SECTION 2(15) IN THE SYSTEMATIC INSTRUCTION SCHOOL ING OR TRAINING GIVEN TO THE YOUNG IS PREPARATION FOR THE WORK OF L IFE. IT ALSO CONNOTES THE WHOLE COURSE OF SCHOLASTIC INSTRUCTION WHICH A PERSON HAS RECEIVED. THE WORD EDUCATION HAS NOT BEEN USED IN THAT WIDE AND EXTENDED SENSE ACCORDING TO WHICH EV ERY ACQUISITION OF FURTHER KNOWLEDGE CONSTITUTES EDUCAT ION. ACCORDING TO THIS WIDE AND EXTENDED SENSE TRAVELIN G IS EDUCATION BECAUSE AS A RESULT OF TRAVELING YOU ACQ UIRE FRESH KNOWLEDGE. LIKEWISE IF YOU READ NEWSPAPERS AND MA GAZINES SEE PICTURES VISIT ART GALLERIES MUSEUMS AND ZOOS YOU THEREBY ADD TO YOUR KNOWLEDGE. AGAIN WHEN YOU GROW UP AND HAVE DEALINGS WITH OTHER PEOPLE SOME OF WHOM ARE NOT ST RAIGHT YOU LEARN BY EXPERIENCE AND THUS ADD TO YOUR KNOWLEDGE OF THE WAYS OF THE WORLD. IF YOU ARE NOT CAREFUL YOUR WALLET IS LIABLE TO BE STOLEN OR YOU ARE LIABLE TO BE CHEATED BY SOME UNSC RUPULOUS PERSON. THE THIEF WHO REMOVES YOUR WALLET AND THE SWINDLER WHO CHEATS YOU TEACH YOU A LESSON AND IN THE PROCESS MA KE YOU WISER THOUGH POORER. IF YOU VISIT A NIGHT CLUB YOU GET ACQUAINTED WITH ITA 4788 /MUM/2009 GURSHIP EDUCATION TRUST 8 AND ADD TO YOUR KNOWLEDGE ABOUT SOME OF THE NOT MUC H REVEALED REALITIES AND MYSTERIES OF LIFE. ALL THIS IN A WAY IS EDUCATION IN THE GREAT SCHOOL OF LIFE. BUT THAT IS NOT THE SENS E IN WHICH THE WORD EDUCATION IS USED IN CLAUSE (15) OF SECTION 2. WHAT EDUCATION CONNOTES IN THAT CLAUSE IS THE PROCESS OF TRAINING AND DEVELOPING THE KNOWLEDGE SKILL MIND AND CHARACTER OF STUDENTS BY NORMAL SCHOOLING. 8. SO FAR THE PRESENT ASSESSEE IS CONCERNED THOUGH IT IS CLAIMED THAT EDUCATION IS IMPARTED BUT IN OUR OPINION AS PER MATERIAL ON RECORD IT IS JUST A COACHING CLASS AND CANNOT BE E QUATED WITH THE WORD EDUCATION AS CONTEMPLATED IN SEC. 2(15) OF T HE ACT THEREBY IT CAN BE SAID THAT THE ASSESSEES ACTIVITY IS COVERED INTO THE CHARITABLE PURPOSE. MOREOVER THOUGH IT IS ARGUED THAT THERE IS NO COMMERCIALITY BUT WE FIND THAT THE ENTIRE COACHING TO THE CADETS IS IMPARTED ONLY ON THE COMMERCIAL BASIS. HOW MUCH SURPLUS IS WITH THE ASSESSEE-TRUST IS NOT THE DECISIVE BUT THE ENTIRE FOUNDATION OF THE E XEMPTION IS BASED ON OBJECTS AND ACTIVITIES OF THE TRUST / INSTITUTION. IT IS TRUE THAT IN THE TRUST-DEED THE ASSESSEE HAS SHOWN CHARITABLE OBJECT IN VERY COLOURFUL MANNER BUT AS PER THE EVIDENCE ON RECORD THE SAID O BJECTS ARE ONLY ON THE PAPER. 9. AFTER GIVING OUR ANXIOUS CONSIDERATION TO ALL TH E FACTS AND EVIDENCE ON RECORD IN OUR OPINION THE ASSESSEE IS CONDUCTING THE COACHING CLASSES OF THE SHORT DURATION OF THE 2 AND 3 DAYS TO THE CADETS DESIRING TO JOINT MERCHANT NAVY AND THE SAID COACHING CLASSES CANNOT BE TREATED AS CHARITABLE ONE. MOREOVER THE ASSESSEES ACTIVITY IS COMMERCIALLY TAINTED AND NOTHING IS PLACED BEFOR E US TO SHOW THAT AT WHAT CONCESSIONAL RATES THE COURSES ARE BEING CO NDUCTED. IN OUR OPINION THE LD. DI (EXEMPT) HAS RIGHTLY REJECTED T HE APPLICATION OF THE ASSESSEE. WE FIND NO MERITS IN THE APPEAL FILED BY THE ASSESSEE. 10. IN THE RESULT ASSESSEES APPEAL IS DISMISSED. ITA 4788 /MUM/2009 GURSHIP EDUCATION TRUST 9 ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF SEPTEMBER 2011. ( P.M. JAGTAP ) ACCOUNTANT MEMBER ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI DATED : .. SEPTEMBER 2011 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE DIT (EXEMPT) CONCERNED MUMBAI. 4) THE DIT/ CIT- CONCERNED MUMBAI. 5) THE D.R. G BENCH MUMBAI. BY ORDER ASSTT. REGISTRAR I.T.A.T. MUMBAI *CHAVAN SR.N. EPISODE OF AN ORDER DATE INITIALS CONCERNED 1 DRAFT DICTATED ON 15.09.2011 SR.PS 2 DRAFT PLACED BEFORE AUTHOR 19.09.2011 SR.PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 FILE SENT TO THE BENCH CLERK SR.PS/PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER