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2021 (4) TMI 447 - AT - Income TaxExemption u/s 11 - as per AO assessee is on the activity of publishing of books which account for 59.44% of its total income and 94.30% of its total expenditure under the head 'educational' and accordingly concluded that the activities of the trust falls in the category of 'advancement of any other object of general public utility' u/s. 2(15) - whether the activities of the assessee trust are charitable in nature within the meaning of section 2(15)? - whether the assessee's activities are hit by the amended proviso to section 2(15) ? - HELD THAT:- We find that over the years, the assessee trust had published over 240 magazines and 120 books thereby making them a veritable encyclopedia of art and culture. The profile of Marg Publications reveal that their publications enjoy a loyal readership and a very high reputation nationally and internationally, being read not only in the major cities, but also in remote towns in India and across 30 countries abroad. Their readers include Indophiles, connoisseurs and art dealers, executives, scholars, architects, designers, and students all over the world. We find that for some of the publications of assessee trust, grants are received from Ministry of Culture, Government of India. We find that the entire grants received for publications are also reflected as 'Sales' in the Income and Expenditure Account of the assessee. Now whether the publication and sale of books and magazines/journals could be construed as charitable in nature need to be ascertained. We find that this issue has been squarely addressed in the case of Delhi Bureau of Text Books vs. Director of Income Tax (Exemptions) [2017 (5) TMI 430 - DELHI HIGH COURT] wherein it was held that the assessee society engaged in printing, publication and distribution of school text books at subsidized rates or even free and generated profits out of these activities, it could not be concluded that assessee ceased carrying on charitable activity of education. Respectfully following the aforesaid decision we hold that the activities of the assessee trust to be charitable in nature falling under the ambit of 'Education' and not 'advancement of any other object of general public utility' and hence proviso to section 2(15) of the Act does not apply to the assessee. Consequentially the assessee would be eligible for exemption u/s. 11 of the Act. Accordingly, the grounds raised by the assessee are allowed.
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