TMI Blog2015 (4) TMI 976X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961 which defines the term charitable purpose and the proviso thereto and thus urges that this appeal raises substantial question of law. In his submission, the proviso emphasises that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration irrespective of the nature of use or application, or retention, of the income from such activity. In other words, the proviso applies if the activity is in the nature of trade or business generating income. In such circumstances, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee trust has shown sales to the tune of ₹ 69,72,052/-, besides the bank interest on fixed deposit and savings bank account is shown as ₹ 56,73,160/-. However, the trust's activity will not fall in the proviso as the sales are only of the items made by the ladies who are attached to the assessee trust. Hence the sales are not in the nature of trading activity of the assessee trust. The reasons assigned by the Tribunal, therefore, indicate that in the facts and circumstances of the present case, the provision will not be attracted. Therefore, the appeal does not raise any substantial questions of law and must be dismissed. 4. We have with the assistance of Mr.Malhotra and Mr.Dastur perused the order passed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activity in the nature of trade, commerce or business or any activity of rendering any service in relation to any trade, commerce or business for a cess, fees or any other consideration. In the present case, the undisputed facts are that the assessee is 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. The assessee trains them to earn while learning. It educates them in the field of catering, stitching, toy making, etc. While giving them training, the assessee uses related material which it buys from the open market. This is essential for carrying out the assessee's object. In the process, some finished product such as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a deficit. It is in these circumstances that the argument was canvassed that the fees collected for training women are only to meet the cost of expenses for providing them food items. Their accommodation and other facilities are 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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