TMI Blog2014 (4) TMI 1073X X X X Extracts X X X X X X X X Extracts X X X X ..... various clothes/garments so that they themselves can earn their own. The trust had provided raw materials like cloth, threads and other items free of charge to all the 80 mahilas who had participated in the project. By giving training in stitching and embroidery to rural women, the sole purpose of the assessee-trust is to uplift them so that they can become independent. Though the assessee-trust is also charging meager fee, the income & expenditure accounts it shows the stitching training income of ₹ 192668/- whereas expenses incurred for such activities amounting to ₹ 231756, thus resulted to deficit of ₹ 39088/-. The Hon’ble Delhi High Court in the case of Institute of Chartered Accountants of India vs. DGIT(E) (201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s activities, the office of the CIT issued notice dated 10.09.2013 to the assessee asking to produce necessary evidences in support of its application alongwith books of accounts, donation receipt book and invoices for expenses etc.. On examination of these details and documents, the ld. CIT observed that the main activity of the assessee is running a training institute for stitching and embroidery for women. According to the ld. CIT, giving training of stitching etc. is an occupational training which cannot be termed as educational training. The ld. CIT accordingly held that as per provisions of section 2(15) of the Act, the activity being carried out by the assessee are commercial activity which are not of charitable nature; therefore he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stitching given by the assessee-trust is an occupational training and cannot be termed as educational activity. The ld. Counsel of the assessee submitted that the assessee-trust has provided stipend to poor and needy beneficiaries. He further drew my attention to the income and expenditure account wherein the stitching training income is ₹ 192668/- whereas expenses for these activities are of ₹ 231756/- i.e. there is a deficit of ₹ 39088/-. 5. Continuing his arguments, the ld. Counsel of the assessee further submitted that the aforesaid activities of the assessee-trust fall under the definition of charitable purpose given in section 2(15) of the Act being advancement of any other object of general public utility. In s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of the assessee also relied upon the decision of ITAT Chennai Bench in the case of A.V.S. Educational Trust v. ITO, [2013] 30 taxmann.com 168, wherein it was observed by the Tribunal that for registration of newly registered trust, under section 12AA, objects for which it was formed should be examined and not its activities. 7. On the basis of aforesaid submissions, ld. Counsel of the assessee submitted that in the impugned order ld. CIT neither brought on record that activities of the assessee are non-genuine nor objects of the assessee are not charitable, within the meaning of section 2(15) of the Act; therefore, he may be directed to grant the registration to the assessee-trust u/s 12A of the Income-tax Act, 1961. 8. On the other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of ₹ 192668/- whereas expenses incurred for such activities amounting to ₹ 231756, thus resulted to deficit of ₹ 39088/-. The Hon ble Delhi High Court in the case of Institute of Chartered Accountants of India vs. DGIT(E) (supra), held that where dominant objective of ICAI was to regulate profession of Chartered Accountancy in India, it was a charitable institution and conducting coaching classes and campus placements for a fee could not be held as business as per section 2(15) of the Income-tax Act. In view of the ratio of decision of Hon ble Delhi High Court, just by charging nominal fee for providing training in stitching and embroidery for rural women, the dominant purpose of the assesseetrust is to uplift the statu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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