Assessee trust's educational activities deemed primary, exempt under Section 11, Revenue appeal dismissed.

The Tribunal upheld the decision that the assessee trust was engaged in imparting education, with the sale of books and cassettes deemed incidental to its main objective. The first proviso to Section 2(15) was found inapplicable, leading to the grant of exemption under Section 11. The Revenue's appeal was dismissed.

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Issues Involved:
1. Jurisdiction of the Assessing Officer to invoke the proviso to Section 2(15) without communicating to the authority registering under Section 12A.
2. Nature of activities related to the sale of books and cassettes and whether they constitute education or commercial/business activity.
3. Applicability of the first proviso to Section 2(15) to the activities of the assessee.
4. Determination of whether the sale of books and cassettes is an incidental activity without surplus motive.

Detailed Analysis:

1. Jurisdiction of the Assessing Officer:
The Revenue contended that the CIT(A) erred in holding that the Assessing Officer had no jurisdiction to invoke the proviso to Section 2(15) without communicating to the authority registering under Section 12A. The Tribunal did not specifically address this issue in isolation but rather focused on the broader applicability of Section 2(15) and the nature of the activities conducted by the assessee trust.

2. Nature of Activities - Education vs. Commercial/Business Activity:
The Tribunal analyzed whether the activities of selling books and cassettes by the assessee trust were in the nature of education or constituted a regular commercial/business activity. The assessee trust argued that its main object was to spread knowledge and awareness through discourses and the publication of books and cassettes related to Jeevan Vidya philosophy. The CIT(A) concluded that the trust was engaged in imparting education, and the sale of books and cassettes was incidental to this main object. The Tribunal upheld this view, emphasizing that the term "education" under Section 2(15) has a broad scope and includes activities aimed at spreading awareness and knowledge.

3. Applicability of the First Proviso to Section 2(15):
The Revenue argued that the activities of the assessee were covered by the first proviso to Section 2(15), which excludes activities in the nature of trade, commerce, or business from the definition of "charitable purpose." The Tribunal noted that the first proviso to Section 2(15) does not apply to activities related to education, as the legislature intended to promote education by excluding it from the proviso's scope. The Tribunal referenced the judgment of the Hon'ble Supreme Court in CST vs Sai Publication Fund, which held that incidental activities without profit motive do not constitute business.

4. Sale of Books and Cassettes - Incidental Activity Without Surplus Motive:
The Tribunal examined whether the sale of books and cassettes by the assessee trust was an incidental activity without surplus motive. The CIT(A) had found that the pricing of books and CDs indicated no intent to make a profit and that the activity was integral to the main object of spreading awareness about Jeevan Vidya. The Tribunal agreed with this assessment, noting that the distribution of books and CDs was not an independent business activity but part of the trust's educational objectives. The Tribunal concluded that the Assessing Officer was incorrect in denying the exemption under Section 11, as the activities were not in the nature of trade, commerce, or business.

Conclusion:
The Tribunal upheld the CIT(A)'s decision, affirming that the assessee trust was engaged in imparting education and that the sale of books and cassettes was incidental to its main object. The first proviso to Section 2(15) was deemed inapplicable, and the exemption under Section 11 was rightly granted. The appeal of the Revenue was dismissed.

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