TaxTMI 
TaxTMI 
2024 (2) TMI 45
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....claim of the assessee for exemption u/s 11 by ignoring the fact that the Assessing Officer in his order has pointed out that the assessee trust is engaged only in the activity of printing, publishing and distribution of journal and magazines and major part of the income of the assessee is from sales and subscription at Rs. 2, 82, 28, 399/- which is 63% of total receipts of Rs. 4,50, 71, 671/- which is clearly hit by the provisions of section 2(15) of the Act and accordingly, in view of provisions of section 13(8) of the Act assessee is not eligible for exemption u/s. 11 of the Income Tax Act, 1961 ?" 3. "Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) is justified in deciding the issue in favour of the assessee on the basis of judgment in Civil Appeal 9445 of 1996 which relates to indirect tax (Sales Tax) and does not relate to sec. 2(15) of the Income Tax Act?" 4. "Whether on the facts and circumstances of the case and in law, the Ld.CITA) has erred in lauw and fact in not assigning any reasons as to how the facts of the case in Civil Appeal No. 9445 of 1996 are applicable to the assessee Trust?" 5. "Whether on the facts and circumstances of the ....
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....he hands of the assessee. The ld. A.O. determined the total income at Rs. 3,64,34,690/- vide assessment order dated 26.12.2017 passed u/s. 143(3) of the Act. 5. Aggrieved the assessee was in appeal before the first appellate authority. 6. The ld. CIT(A) allowed the appeal filed by the assessee by relying on the decision of the Hon'ble Supreme Court in the case of CIT vs. Sai Publication Fund [2002] 122 Taxman 437 (SC) where on identical facts the Hon'ble Apex Court has deleted the impugned addition. 7. The Revenue is in appeal before us, challenging the order of the ld. CIT(A). 8. The learned Departmental Representative ('ld.DR' for short) for the Revenue contended that the activities of the assessee trust is in the nature of trade, commerce or business and the income generated out of it was rightly taxed by the ld. A.O. in the hands of the assessee. The ld. DR further contended that the assessee's case would be covered by the proviso to section 2(15) of the Act and proviso to section 13(8) of the Act where the assessee is in the nature of charitable trust and is not entitled to claim exemption u/s. 11 of the Act. The ld. DR relied on the order of the Hon'bl....
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....is teachings on Bhagwad Gita, Upanishads, etc. in various parts of India and outside the country. The assessee contends that it is educating the humanity based on social, moral and spiritual upliftment of people at large. The publication activity carried on by the assessee is only on the teachings of Rev Dada which it claims it to be without profit motive and not a commercial activity in any manner whatsoever may be. The assessee has stated that the ld. A.O. for A.Y. 1990-91 has held that the activities of the assessee would fall within the definition of clause 2(15) of the Act and the ld.A.O. in A.Y. 1999- 2000 and A.Y. 2006-07 has not made any addition u/s. 143(3) of the Ac. It is also pertinent to point out that the assessee trust has stated that the assessee had never advertised for sale of books or subscription of magazines and that it was not even supplying the demanded quantity of books and that it was neither carrying out any job work where it can earn profit. The assessee has also reiterated that the profit earned out of the said activity is due to the reason that the activities are carried out voluntarily by swadhyayees themselves without any profit motive. It is also to ....
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....come within the meaning of "business". To put it differently, the inclusion of incidental or ancillary activity in the definition of "business" pre-supposes the existence of trade, commerce etc. The definition of "dealer" contained in Section 2(11) of the Act clearly indicates that in order to hold a person to be a "dealer", he must `carry on business' and then only he may also be deemed to be carrying on business in respect of transaction incidental or ancillary thereto. We have stated above that the main and dominant activity of the Trust in furtherance of its object is to spread message. Hence, such activity does not amount to "business". Publication for the purpose of spreading message is incidental to the main activity which the Trust does not carry as business. In this view, the activity of the Trust in bringing out publications and selling them at cost price to spread message of Saibaba does not make it a dealer under Section 2(11) of the Act. ...... ...... 17. This decision is directly on the point supporting the case of the respondent after noticing number of decisions on the point including the decisions cited by the learned counsel before us. It may be stated t....