The Institute Of Marine Engineers India ... vs Ito Ward 2(4), Mumbai on 17 December, 2025
In view of the foregoing discussion, and respectfully following the binding
judicial precedents, including the decision of the coordinate Bench of the ITAT,
Mumbai in Maritime Training & Research Foundation (supra), as well as the
judgment of the Hon'ble Jurisdictional High Court in Samudra Institute of
Maritime Studies Trust (IT Appeal No. 465 of 2012 order dated 07/08/2014), we
hold that the assessee is an educational institution existing solely for educational
purposes within the meaning of section 2(15) of the Act. The activities carried on
by the assessee are integrally connected with and incidental to imparting
structured maritime education and training duly approved and regulated by the
Director General of Shipping, Government of India. The mere generation of
surplus, which has been wholly applied towards educational objects, does not
render the assessee's activities commercial in nature. We further find that the Ld.
AO failed to comply with the specific directions issued by the Tribunal in the
earlier round of litigation and that the Ld. CIT(A) erred in upholding the impugned
assessment order without properly appreciating the factual matrix, evidences on
record, and the applicable judicial principles. Accordingly, the impugned order
passed by the Ld. CIT(A) is set aside, and the Ld. AO is directed to allow the
assessee's claim of exemption under section 11 of the Act. So, the appeal filed by
the assessee is allowed.