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2015 (5) TMI 187 - AT - Income TaxExemption u/s 11 or 12 - whether income earned by the assessee from rendering legal consultancy is to be treated as exempt under section 11 or 12 of the Act - Held that:- assessee is carrying out an educational activity inasmuch as in the process of giving the legal advice to, and carrying out legal work for, the clients, the junior professionals are getting very useful legal education and hands on experience - In the view expressed by Supreme Court in [1975 (8) TMI 1 - SUPREME Court], on the job training to young professionals, even if that be so, is not covered by 'education' in the sense in which income tax law recognizes it. In any event, the activity which is carried out by the assessee is a purely commercial activity, howsoever altruistic be the motive, and it cannot be treated as an educational or charitable activity. - carrying out of the business activity is not incidental to achievement of the main objectives of the trust and, therefore, profits and gains of this business activity cannot be covered by the scope of section 11(4A) either. Just because the profits generated by a business activity are used also for charitable activities does not, by itself, entitle the business profits to be exempted from tax under section 11(4A). - Decided against Assessee.
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