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TMI Blog2024 (2) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... avour of the assessee unless rebutted by the department. It is pertinent to point out that earning of profit per se would not be a criteria to decide whether such activity is a commercial activity or not. By respectfully following the above said decision, we hold that the assessee trust is not into the business of publishing, printing and subscription of the said books as the same is not the main object of the assessee trust. We, therefore, deem it fit to dismiss the grounds raised by the Revenue. - Shri B R Baskaran, AM And Ms. Kavitha Rajagopal, JM For the Assessee : Shri Rajesh P. Shah For the Respondent : Smt. Sujatha P Iyangar ORDER PER KAVITHA RAJAGOPAL, J M: This appeal has been filed by the Revenue, challenging the order of the learned Commissioner of Income Tax (Appeals) ( ld.CIT(A) for short), National Faceless Appeal Centre ( NFAC for short) passed u/s. 250 of the Income Tax Act, 1961 ( the Act'), pertaining to the Assessment Year ( A.Y. for short) 2015-16. 2. The Revenue has challenged the appeal on the following grounds: 1. Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) is justified in holdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(1) of the Act were issued and duly served upon the assessee. 4. During the assessment proceeding, the ld. Assessing Officer ('A.O.' for short) observed that the assessee Trust is a proprietor of Prabodhak Mudranalaya and has generated income of Rs. 2,82,28,399/- majorly from subscription of books, sales of books and sales of cards which according to the ld. A.O. are in the nature of trade and commerce. The ld. A.O. further observed that the assessee is merely engaged in the activities of printing, publishing and distribution of journal and magazines and has received the impugned income which forms 63% of the assessee s total receipts amounting to Rs. 4,50,71,671/-. The assessee has also claimed expenses under the head (amount spent on the object of the Trust) which consists of the sales promotion circulations promotion expenses and exhibition and fair expenses. The assessee contended that out of the other objects of the Trust one of it is to propogate and spread Indian Culture by publishing booklets, magazines and periodicals based on the discourse of Rev Dada without any profit motive. The ld. A.O. rejected the assessee s contention and held that the assessee Trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enditure account enclosed at pg. no. 35 of the paper book. The ld. AR relied on a catena of decisions to substantiate the assessee s claim. The ld. AR also relied on the order of the ld. CIT(A). 10. We have heard the rival submissions and perused the materials available on record. It is observed that the assessee trust is engaged in the activity of imparting education by means of printing of books and publication related to swadhyayees of discourses on Gita, Vedas and Upanishads and also printing of books and magazines based on Dadaji s Pravachans which the ld. A.O. claims to be in the nature of trade, commerce or business and the assessee claims it to be part of the charitable activity carried out by the assessee trust. The ld. A.O. has rejected the assessee s contention on the ground that the assessee s entire revenue is out of the sales and subscription which are not relatable to the charitable activities as claimed for by the assessee. 11. The ld. CIT(A) by placing reliance on the decision of Hon'ble Apex Court in the case of Sai Publication Fund (supra) deleted the impugned addition made by the ld. A.O. The moot question here is whether the income generated out of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sai Baba was held to be incidental or ancillary to the main object of the Trust without any profit motive and the same would not be termed as business where the assessee trust does not fall within the meaning of dealer u/s. 2(11) of the Act. This view according to us on identical facts would be applicable for the present case in hand where the assessee trust is not merely engaged in the business of printing, publication and subscription of books, but rather incidental to the main activity of the trust which is nothing but the spreading the message of Rev Dada. The relevant extract of the said decision is cited hereunder for ease of reference: 11. No doubt, the definition of business given in Section 2(5A) of the Act even without profit motive is wide enough to include any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture and any transaction in connection with or incidental or ancillary to the commencement or closure of such trade, commerce, manufacture, adventure or concern. If the main activity is not business, then any transaction incidental or ancillary would not normally amount to business unless an independen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arries on business , are the matters to be decided on facts and in the circumstances of each case. 18. For what is stated above, we answer the question set out in the beginning in the negative and in favour of the respondent- assessee and dismiss the appeal finding no merit in it but with no order as to costs. 13. As per the proposition laid down by the Hon'ble Apex Court in the above said decision, the onus of proof lies on the Revenue to prove that the assessee was carrying on business in respect of the impugned receipt. Even in the case of the present assessee, the dominant purpose was to spread the message based on preaching s which the above decision has held to be not a business activity. It is also observed that in the said decision the term business and carrying on business has been widely interpreted. To hold the incidental or ancillary activity to be business, the Revenue is put to strict proof. Further the presumptions in these cases are also in favour of the assessee unless rebutted by the department. It is pertinent to point out that earning of profit per se would not be a criteria to decide whether such activity is a commercial activity or not. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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