TMI Blog2024 (4) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivities. We are of the considered view that on a close analysis of the aforesaid activities of the assessee trust ,which if viewed in a broader perspective and pitted against the dominant object of the assessee to hold a seminar for furtherance of and in the interest of the members of the industry, cannot be characterised as a commercial activity. We are unable to persuade ourselves to be in agreement with the view of the lower authorities that the assessee was involved in carrying of commercial activities. We thus being of the view that as the assessee is carrying on its charitable activities, which are in the nature of advancement of the object of general public utility and is not carrying on any commercial activity, therefore, uphold the entitlement of the assessee towards claim of exemption under Sec. 11 The Co-ordinate Bench threadbare examined activities of the assessee from all facets including the issue of rendering services to members. In light of aforesaid decisions by Co-ordinate Bench we find no infirmity in the impugned order. Thus, the order of CIT(A) is upheld and appeal of Revenue is dismissed. - Shri Vikas Awasthy, Judicial Member And Shri Amarjit Singh, Accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvertisement, sale of publication, sponsorship fees, etc arising from regular and systematic activities which are in the nature of trade. Commerce or business. 3. Shri Ankush Kapoor representing the Department submits that assessee is a Charitable Trust registered u/s. 12A of the Income Tax Act, 1961 [in short the Act ]. Though the assessee is claiming to have carried out charitable activities in accordance with its objects but in actual the assessee is a mutual association working for the benefit of its members only. In the light of CBDT Circular No.11/2008 dated 19/12/2008 the assessee is not eligible for the benefit of exemption u/s.11 of the Act. The ld. Departmental Representative vehemently supported the assessment order and prayed for reversing the findings of CIT(A). 4. Per contra, Shri Anil Sathe appearing on behalf of the assessee submits that the assessee is a Non-profit Public Charitable Trust registered u/s. 12A of the Act. The object of the assessee is to promote Fragrance and Flavor Industry. In the preceding Assessment Years, the Assessing Officer had disallowed the benefit of section 11 of the Act to the assessee for similar reasons. The matter travelled to the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der perspective and pitted against the dominant object of the assessee to hold a seminar for furtherance of and in the interest of the members of the industry, cannot be characterised as a commercial activity We find that the Hon ble Jurisdictional High Court in the case of Director of Income-tax Vs. Womens India Trust (2015) 379 ITR 506 (Bom) had upheld the observations of the Tribunal that where a trust formed to carry out the object of education and development of natural talents of the people having special skills, more particularly the women in the society, had in the course of imparting to them training in the field of catering, stitching, toy making, etc., therein carried out sale of certain finished products, viz. pickles, jams, etc. which were in the course of such training produced by them, through shops, exhibitions and personal contracts, the same could not be held to be activities in the nature of trade, commerce or business as contemplated in the proviso of Sec. 2(15). We find that the view of the Tribunal that as the dominant object of trust was to teach or impart skills and to instill confidence, therefore, the sale of the goods or articles produced in the course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iptions from the members, sale of publications, Fafai Journal, holding of workshops conferences, directory receipts etc., were provided for facilitating the dominant object of the assessee trust, viz. providing knowledge, information, awareness, demonstrations etc. to the members of the Fragrance and Flavours industry. We further find that even the display of the products of the sponsors of the seminar at Bangalore, who were primarily the members of the industry, was also in furtherance of the interest of the members of the industry, i.e both by facilitating the very holding of the seminar, as well as providing them knowledge and information of the wide range of products available in the industry. We are thus of the view that the aforesaid activities of the assessee trust before us, in the backdrop of the aforesaid observations of the High Court of Madras can safely be held to be in the course of furtherance of the dominant object of the assessee trust, and would not fall within the realm of commercial activities. We further find that a similar view had also been taken by the Hon ble High Court of Delhi in the case of The Institute of Chartered Accountants Of India Vs, Director Gen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne charitable trusts of general public utility, but rather, a trust would not be held to be for Charitable purpose‟, if it is engaged in any activity in nature of trade, commerce or business or renders any service in relation to trade, commerce or business for a cess, fee and/or any other consideration. We find that our aforesaid view is fortified by the judgment of the Hon ble High Court of Gujarat in the case of DIT (Exemption) Vs. Sabarmati Ashram Gaushala Trust (2014) 362 ITR 539 (Guj). 12. We thus in the backdrop of our aforesaid observations are of the considered view that activities of the assessee trust which was set up for a charitable purpose within the meaning of Sec. 2(15) of the Act, viz. advancement of an object of the general public utility were well within the realm of charitable purpose for which it was set up. We are of the view that as deliberated by us at length hereinabove, the holding of the seminar at Bangalore and the other activities of the assessee trust, viz. receipt of subscriptions from the members, sale of publications, Fafai Journal, holding of workshops conferences, directory receipts were incidental to and in furtherance of the main object of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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