TaxTMI 
TaxTMI 
2018 (4) TMI 1423
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....rs was to impart knowledge, spread awareness and develop the sector of Fragrances & Flavours, and not to earn surplus and that the resulting surplus is only incidental. 4. The Learned Commissioner of Income Tax (Appeals) erred in holding that the main activity of the appellant is sponsoring of events, without appreciating that while the appellant may receive sponsorship/ advertisement for its programs, it does not sponsor events. 5. The learned Commissioner of Income Tax (Appeals) erred in considering one single seminar to draw an adverse conclusion, and in not considering the entire activities of the Association in a holistic manner. 6. In the alternative and without prejudice to the above grounds, The Learned Commissioner of Income Tax (Appeals) erred in not allowing the alternative plea of the appellant for benefit of principle of mutuality. 7. The Learned Commissioner of Income Tax (Appeals) erred in placing reliance on the decision of Supreme Court in Bangalore Club vs. CIT facts of which case are distinguishable from the case of the appellant. 2. At the outset of hearing, the Ld. Authorized Representative (AR) of the assessee submits that the grounds of appeal raised....
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....t were directed towards providing knowledge, information', awareness, demonstrations etc. to the members of the Fragrance and Flavours industry. The activities of the assessee were essential to understand the development of the said industry in India. We have deliberated on the nature of activities of the assessee trust and are of the considered view that all of its activities, viz. receipts by way of subscriptions from the members, sale of publications, Fafai Journal, holding of workshops & conferences, directory receipts and holding of the seminar at Bangalore, were activities which were aimed for furtherance of the very object of the assessee trust, viz. providing knowledge, information, awareness, demonstrations etc. to the members of the Fragrance and Flavours industry. We are of the considered view that the providing of the aforesaid services were indispensably required to facilitate the furtherance of the very interest of the Fragrance and Flavours industry. Rather, we are of a strong conviction that in the absence of the aforesaid activities of the assessee trust, which as observed by us hereinabove can safely be held to have been indispensably required for the growth o....
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....see to hold a seminar for furtherance of and in the interest of the members of the industry, cannot be characterised as a commercial activity We find that* the Hon'ble Jurisdictional High Court 'in the case of Director of Income-tax Vs. Womens India Trust (2015) 379 ITR 506 (Bom) had upheld the observations of the Tribunal that where 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, had in the course of imparting to them training in the field of catering, stitching, toy making, etc., therein carried out sale of certain finished products, viz. pickles, jams, etc. which were in the course of such training produced by them, through shops, exhibitions and personal contracts, the same could not be held to be activities in the nature of trade, commerce or business as contemplated in the proviso of Sec. 2(15). We find that the view of the Tribunal that as the dominant object of trust was to teach or impart skills and to instill confidence, therefore, the sale of the goods or articles produced in the course of such training could not be construed as carrying on of t....
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....afai Journal, holding of workshops & conferences, directory receipts etc., were provided for facilitating the dominant object of the assessee trust, viz. providing knowledge, information, awareness, demonstrations etc. to the members of the Fragrance and Flavours industry. We further find that even the display of the products of the sponsors of the seminar at Bangalore, who were primarily the members of the industry, was also in furtherance of the interest of the members of the industry, i.e. both by facilitating the very holding of the seminar, as well as providing them knowledge and information of the wide range of products available in the industry. We are thus of the view that the aforesaid activities of the assessee trust before us, in the backdrop of the aforesaid observations of the High Court of Madras can safely be held to be in the course of furtherance of the dominant object of the assessee trust, and would not fall within the realm of commercial activities. We further find that a similar view had also been taken by the Hon'ble High Court of Delhi in the case of The Institute of Chartered Accountants of India Vs, Director General of Income (Tax (Exemption) (2013) 260....
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....lic utility, but rather, a trust would not be held to be for 'Charitable purpose', if it is engaged in any activity in nature of trade, commerce or business or renders any service in relation to trade, commerce or business for a cess, fee and/ or any other consideration. We find that our aforesaid view is fortified by the judgment of the Hon'ble High Court of Gujarat in the case of DIT (Exemption) Vs. Sabarmati Ashram Gaushala Trust (2014) 362 ITR 539 (Guj). 12. We thus in the backdrop of our aforesaid observations are of the considered view that activities of the assessee trust which was set up for a charitable purpose within the meaning of Sec. 2(15) of the Act, viz. advancement of an object of the general public utility were well within the realm of charitable purpose for which it was set up. We are of the view that as deliberated by us at length hereinabove, the holding of the seminar at Bangalore and the other activities of the assessee trust, viz. receipt of subscriptions from the members, sale of publications, Fafai Journal, holding of workshops & conferences, directory receipts were incidental to and in furtherance of the main object of securing the advancemen....