Case Law Details
OMS Power Training & Research Institute Vs CIT (Exemptions) (ITAT Cuttack)
Assessee contended that CIT(E) is also not justified in observing that the activities of the trust are not charitable in nature although it imparts training programmes as per syllabus prescribed by Government for Electrical and instrumentation branches to the Engineers sponsored by various Companies/Organisations. He submitted that the trust is collecting nominal fees from the sponsors for organizing the training programme. He submitted that the ld CIT(E) without analysing the above facts, rejected the application for grant of registration u/s.12AA of the Act, hence, the matter may be restored to the file of ld CIT(E) to decide the issue afresh.
CIT(E) observed that activities of the assessee are taken up according to the needs of the said companies on commercial basis. The assessee has submitted various documents in the form of e-mail correspondence etc. from various other companies requesting the assessee trust to provide faculty assistance etc. On perusal of the said documents, the assessee has been conducting various training programmes to suit the particular needs of the said companies. For such work, the assessee is charging certain amount from the companies. Thus, the activity is nothing but a contract. Thus, there is no charitable element Involved In the said activity, Thus, the activities art commercial In nature, Further, the assesse’s activities are not In accordance with the objects mentioned In the trust deed. Thus, assessee is pursuing objects which are not Included In the trust deed. Thus, the assessee is not eligible for registration u/s. 12A of the Act.
We also find that the ld CIT(E) has reproduced the correspondence with different organisations regarding training programme and payment terms in the impugned order to substantiate that the assessee has collected fees for imparting training to various participants in lieu of payments. Also, the assessee trust has received 23,30,000/- from renting the part premises.
Section 2(15) of the Income-tax Act defines charitable purpose for the purpose of the Act and includes relief of the poor education, medical relief and the advancement of any other object of general public utility. But in the present case, the assessee trust is collecting fees from different organisations towards training programme and also received rent for letting out the part premises. Nowhere, the assessee has done the work, which can be treated as charitable purposes. Hence, we dismiss the appeal of the assessee.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
