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TMI Blog2017 (8) TMI 1631X X X X Extracts X X X X X X X X Extracts X X X X ..... also, if any transaction of the trust which are incidental or ancillary towards fulfillment of the objects of other general public utility, will not normally amount to business trade or commerce, unless there is some intention to carry out business, trade or commerce on a permanent basis or for a reasonable continuity. The LD. DIT has not brought any evidence or material on record to show that the assessee was carrying out the activities on business or commercial principle or outside its objects. Thus on the facts of the present case it cannot be held that assessee's case is hit by proviso to section 2(15) or the registration granted earlier can be canceled within the ambit of section 12AA(3). We find that the assessee s appeal is f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, it was withdrawn by DIT (E), Mumbai vide his order dated 08.12.2011. Subsequently, the said order was set aside by the ITAT in ITA No.550/Mum/2012 and appeal was allowed against the said cancellation order. The AO while completing the assessment for A.Y. 2010-11 denied the exemption claimed by the assessee under section 11 of the I.T. Act and completed the assessment by holding that the assessee is not engaged in charitable activities in reference to proviso to section 2(15) of the I.T. Act, 1961. 3. Matter carried to the Ld. CIT(A) and the Ld. CIT(A) has dismissed the appeal of the assessee. 4. Before us, the Ld. A.R., at the outset, has submitted that the issue in controversy is already decided by the Tribunal in favour of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness. The second part, any activity of rendering any service in relation to any trade, commerce or business obviously intends to expand the scope of the proviso to include services, which are rendered in relation to any trade, commerce or business. The proviso further stipulates that the activity must be for a cess or fee or any other consideration. The last part states that the proviso will apply even if the cess or fee or any other consideration is applied for a charitable activity/purpose. The proviso has to be given full effect to. Thus, even if cess, fee or consideration is used or utilized for charitable purposes the proviso and the bar will apply. An institution not be regarded as established for charitable purpose/activity under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Punjab vs. Bajaj Electrical Ltd. (1968) 2 see 536, Khodey Distillary Ltd. vs. State of Kerala (1975) 1 see 574 and CST vs. Sai Publication Fund (2002) 4 see 57 and also referred to various other dictionary meaning and commentary and held that: 18. The word business is the broadest term and it encompasses trade, commerce and other activities. Sec. 2(13) of the IT Act defines the term 'business' as under 2 Definition- (13) business' includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture. 19. The word business is a word of large and indefinite import. Sec. 2(13) defines business to include any trade, commerce or manufacture or nay adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the decision of the House of Lords in town Investments ltd. Ors. Vs. Department of the Environment (1977) 1 All ER 813. In this case, a Government Department was' claiming benefit under a legislation that protected business tenancies from increase in rent. The term _in !~e said -case by a majority decision was held to include chameleon; it suits its meaning to the context in which it is found. It is not the term of legal art but in its dictionary meaning it includes anything which is an occupation, as distinguished from pleasure-anything which is an occupation or a duty which requires attention is business. It was also observed that business conveys in ordinary meaning the notion of a distinct enterprise (not necessarily for prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of its receipts can be said to be arising or accruing from the activities which can be said to be for the purpose of business or in the nature of trade or commerce. Here in this case all the activities are carried out in accordance with the objects and none of its activities have been found to be non genuine. The assessee's explanation before the DIT regarding nature of receipts clearly shows that they have been received from the members while pursuing objects of the society, specifically mentioned in the objects for which it was granted registration u/s 12A. 9. Otherwise also, if any transaction of the trust which are incidental or ancillary towards fulfillment of the objects of other general public utility, will not normally ..... X X X X Extracts X X X X X X X X Extracts X X X X
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