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2014 (4) TMI 1073 - AT - Income TaxApplication for registration u/s 12A rejected - CIT observed that the main activity of the assessee is running a training institute for stitching and embroidery for women, accordingly giving training of stitching etc. is an occupational training which cannot be termed as educational training, thus held that as per provisions of section 2(15) of the Act, the activity being carried out by the assessee are commercial activity which are not of charitable nature - Held that:- The assessee-trust is giving sewing training class at Ramania, Tal. Mundra-Kutch for women staying in rural areas to give them full training of preparing various clothes/garments so that they themselves can earn their own. The trust had provided raw materials like cloth, threads and other items free of charge to all the 80 mahilas who had participated in the project. By giving training in stitching and embroidery to rural women, the sole purpose of the assessee-trust is to uplift them so that they can become independent. Though the assessee-trust is also charging meager fee, the income & expenditure accounts it shows the stitching training income of ₹ 192668/- whereas expenses incurred for such activities amounting to ₹ 231756, thus resulted to deficit of ₹ 39088/-. The Hon’ble Delhi High Court in the case of Institute of Chartered Accountants of India vs. DGIT(E) (2013 (7) TMI 205 - DELHI HIGH COURT), held that where dominant objective of ICAI was to regulate profession of Chartered Accountancy in India, it was a charitable institution and conducting coaching classes and campus placements for a fee could not be held as business as per section 2(15) of the Income-tax Act. In view of the ratio of decision of Hon’ble Delhi High Court, just by charging nominal fee for providing training in stitching and embroidery for rural women, the dominant purpose of the assesseetrust is to uplift the status of rural women which is charitable activity within the meaning of Section 2(15) of the Income-tax Act. Therefore, set aside the impugned order of ld. Commissioner of Income-tax, Rajkot-I, Rajkot and direct to grant the registration u/s 12A of the Income-tax Act, 1961. - Decided in favour of assessee.
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