9911796707
TMI Blog1975 (1) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... of the said trust. This committee was started mainly with the object of providing employment to the poor and distressed women of the said community, who have no source of income. In order to provide maintenance to such women, the respondent employed them for preparing eatables. These articles were sold and the money realised was given to the destitute women employed by the respondent. From the judgment of the Tribunal it appears that the surplus amount out of the said realisations was utilised by the respondent for extending its activities so that more destitute women of the community could get relief. It is common ground that the eatables prepared in the Udyog Griha were sold like any other articles in the market and not necessarily at a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial activity of sale. The Tribunal accepted the conclusion of the Deputy Commissioner of Sales Tax that there was surplus resulting from the activity of sale of the eatables and also that the eatables prepared were sold in the market like any other articles and not at any concessional rate. The Tribunal, however, held that the surplus which resulted to the respondent from these sales could not be termed as profits in the commercial sense, because that surplus was utilised to extend similar activities so that the living conditions of a larger number of poor and destitute women of the community could be ameliorated. The Tribunal further held that it was not the intention of the charitable institution to carry on the business of selling edibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tention of Mr. Cooper one cannot lose sight of the fact that the findings of the Tribunal clearly show that in the case before us the charitable purpose, which was one of the main purposes of the said trust and for the carrying out of which the respondent committee was formed, was to ameliorate the living conditions of the poor and destitute women of the community. It was in the carrying out of that purpose that the respondent employed poor and destitute women of the community and got eatables prepared by them. These eatables had necessarily to be sold, and the surplus realised was again utilised for carrying out that very purpose, viz., of getting employed a larger number of destitute women of the community with a view to give them mainten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tle and other stray animals. The assessee had agricultural lands which it cultivated personally through its servants and sold the cotton grown on those lands. The assessee also sold the carcasses of animals dying in the institution, milk from the pedigree cattle and the dung for use as fertilizer. It was held by the Division Bench that the assessee was actuated entirely by a charitable or religious or philanthropic motive and it did not carry on any business activity with any profit-motive; and merely because incidental sales Were done of the animal products, it could not be considered as carrying on the business of selling those goods. Hence it was not a dealer within the meaning of section 2(11) of the said Act. It has been pointed out by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant-society was to transport fish belonging to the members of the society from fishing centres to the market and vice versa. For the purpose of transporting fish, the society had to maintain a fleet of transport vehicles and, for preserving the fish in the course of transport, the society used to purchase ice, and the members, whose fish was transported, were charged for the quantity of ice required in respect of their baskets of fish. For the year 1959-60 the purchase of ice by the society was of the value of Rs. 20,534, while the society received from its members a sum of Rs. 32,819 for the supply of ice. It was, inter alia, held that the business of the applicant-society was to transport fish belonging to its members and it suppli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purpose of assessment to sales tax and it ought not to be confused with the ultimate object of the society which was to propagate Christian literature and the assessee was, therefore, liable to sales tax. In our view, this decision must be distinguished from the case before us. In that case, the ultimate object of the assessee was to propagate Christian literature. The findings of fact, however, clearly show that the aim of the assessee in buying and selling the books in question was to make a profit and that these profits were ultimately to be utilised in the furtherance of the aforesaid object of the assessee. The findings, therefore, indicate that the intention in carrying out the activity in question in that case was the making o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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