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2015 (4) TMI 976 - HC - Income TaxCharitable purpose - Non applicability of section 2(15) - whether advancement of any other object of general public utility shall not be a charitable purpose? - Held that:- The motive of the assessee is not the generation of profit but to provide training to the needy women in order to equip or train them in these fields and make them self confident and self reliant. There is nursing training, which is also being managed and administered by the assessee. The details of income and expenditure accounts shows that the assessee had received donation of ₹ 36,88,634/- and nursing school fees of ₹ 4,46,088/-. The assessee pointed out that this nursing training provided at the centre of the assessee at Panvel is free of costs. Once the essential nature of the activities carried on by trust is considered, then, the larger question need not be decided. The Tribunal found that the trust may be set up for advancement of any other object of general public utility, but that will not cease to be charitable purposes in this case, because, the activities in which the trust is involved cannot be termed as carrying on of trade, commerce or business. This is to impress upon the women the need to be self reliant and self supporting and to instill in them the confidence that they can make a livelihood for themselves if they rely on the skills as afore-noted, that the activity has been undertaken. It does not partake the character of trade, commerce or business nor of rendering of any service in relation thereto. It is only to teach or impart skills and to instill confidence that the produced goods or articles are sold. To that extent also deficit has occurred. In the circumstances, the Tribunal took a view that occasional sales or the trust's own fund generation are for furthering the objects but not indicative of trade, commerce or business. In the circumstances, the proviso does not apply. Trust has been set up and is functional for the past several decades and it has not deviated or departed from any of its state object and purpose, utilisation of the income, if at all generated, does not indicate carrying on of any trade, commerce or business. The Tribunal's view deserves to be upheld. It is a possible view and cannot be termed as perverse - Decided in favour of assessee.
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