2016 (10) TMI 46

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..... not apply to aggregate value of receipts from the activities referred to thereunder is 25 per cent or less in the previous year. In other words, so long as the aggregate value is less than 25 per cent, the exclusion clause contained in the first proviso would not activate. Surely, at the time of application for registration, when the applicant institute has not even commenced its activities, it would not be possible to apply this proviso and the question of their applicability would arise at a later stage while actually granting exemption. As the Tribunal held that the institute was engaged in the object of general public utility, we do not see any error in such view. - Decided against revenue - Tax Appeal No. 569 of 2016 - - - Dated: .....

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..... committed a serious error in overruling the decision of the Commissioner who had given cogent reasons for holding that objects of the assessee were not for general public utility but were purely in the nature of commercial activities. 4. From the record, however, we notice that the institute was created with an object of improving quality of training leading to better employibility of trainees and upgradation of industrial training institute. The institute though had to receive funds under certain circumstances, would operate on no loss no profit basis, however, would try to be financially self sufficient for which purpose revenue would be generated through certain sources. 5. If after consideration of such objects, the Tribunal held .....

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..... se if it involves carrying on any activity of nature of trade or business or any activity rendering any service in relation to the said commercial business, for a cess or fees or any other consideration irrespective of the nature of use or application, or retention of the income from such activity. This sub-section however carries a further proviso which provides that the proviso will not apply to aggregate value of receipts from the activities referred to thereunder is 25 per cent or less in the previous year. In other words, so long as the aggregate value is less than 25 per cent, the exclusion clause contained in the first proviso would not activate. Surely, at the time of application for registration, when the applicant institute has no .....

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