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5. The assessee contended in its letter dated July 17, 1969, that the institute is purely a public charitable trust whose sole object is to preserve the country's artistic pursuits and that there is no sharing of profits which incidentally accrue in the course of the business. In the subsequent letter dated August 18, 1970, the assessee contended that the object of the institute falls within the concept of "education" on the ground that the primary object of the institute is to impart instruction in handicrafts and that the institute is a charitable trust and the income realised by sale of the products made by indigenous craftsmen and skilled artisans is exempt under Section 11(1)(a) of the Act.

"The position as it existed under the Act of 1922 was that once the purpose of the trust was relief of the poor, education, medical relief or the advancement of any other object of general public utility, the trust was considered to be for a charitable purpose. As a result of the addition of the words 'not involving the carrying on of any activity for profit' at the end of the definition in Section 2(15) of the Act, even if the purpose of trust is 'advancement of any other object of general public utility', it would not be considered to be 'charitable purpose' unless it is shown that the above purpose does not involve the carrying on of any activity for profit. The result thus of the change in the definition is that in order to bring a case within the fourth category of charitable purpose, it would be necessary to show that: (1) the purpose of the trust is advancement of any other object of general public utility, and (2) the above purpose does not involve the carrying on of any activity for profit. Both the above conditions must be fulfilled before the purpose of the trust can be held to be charitable purpose."