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2015 (11) TMI 743 - ITAT MUMBAIApplicability of proviso to section 2(15) - income earned by the assessee trust from of sale/distribution of books, cassettes and CDs - exemption u/s 11 denied - Held that:- Since the assessee is engaged in imparting education, in that case if the books, cassettes etc. have been distributed as integral part of that activity, to attain the main object and without any profit motive, in that case it cannot be said that this activity has been carried out in the nature of trade, commerce or business, and accordingly, first proviso to section 2(15) shall not be applicable and the exemption granted to the assessee trust cannot be withdrawn on that reason alone. Assessee was engaged in the activity of imparting education, since there was no need to give restricted meaning to scope of meaning of the term ‘educational’; and that distribution of books and CDs even by way of ‘sale’ or otherwise, in pursuit of the aforesaid object cannot be said to be an activity in the nature of trade, commerce or business, especially in the absence of any profit motive. In view of these facts and circumstances, the Assessing Officer was not correct in denying the benefit of exemption. Ld. CIT(A) has rightly reversed the order and was justified in granting the benefit of exemption to the assessee trust - Decided in favour of assessee.
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