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   Assessee carried the mater in appeal. CIT [A] rejected the appeal  and confirmed the order of the Assessing Officer. The assessee, therefore,  approached   the   Tribunal   in   second   appeal.   Tribunal,   by   the  impugned  judgment, reversed the decision of the revenue authorities holding that  the assessee is a charitable trust and  proviso  to section 2 (15) of the Act  will not apply. The Tribunal relied on the Finance Minister's speech in the  Parliament explaining proviso to Section 2 (15) as also the CBDT Circular  No. 11/2008  of 19th December 2008.  The Tribunal took note of the objects  of the Trust and came to the conclusion that the Trust was carrying on its  activities on non­commercial basis with no motive to earn  profit. The aims  and objects of the Trust were charitable in nature. While implementing  such   objects,   if   there   was   any   profit,   incidentally   generated,   the   same  would not be hit by proviso to section 2 (15) of the Act. In the conclusion,  the Tribunal clarified that the decision was delivered in peculiar facts of  the case and would not apply to a case where the trust is doing business or  trade   under   the   grab   of   charitable   activities.   The   Revenue   is   therefore  O/TAXAP/1162/2013 JUDGMENT before us in the present Tax Appeal, raising aforementioned questions of  law.

Many activities of genuine charitable purposes which are not in the  nature   of   trade,   commerce   or   business   may   still   generate   marketable  products. After setting off of the cost, for production of such marketable  products from the sale consideration, the activity may leave a surplus. The  law   does   not   expect   the   Trust   to   dispose   of   its   produce   at   any  consideration   less   than   the   market   value.   If   there   is   any   surplus  generated   at   the   end   of   the   year,   that   by   itself   would   not   be   the   sole  consideration   for   judging   whether   any   activity   is   trade,   commerce   or  business ­ particularly if generating 'surplus' is wholly incidental to the  principal   activities   of   the   trust;   which   is   otherwise   for   general   public  utility, and therefore, of charitable nature. The Tribunal took into account  the objects of the Trust, which are as under :­ "1. To   breed   the   cattle   and   endeavour   to   improve   the  quality of  the  cows  and  oxen in view  of  the  need of  good  oxen as India is prominent agricultural country and the cow  milk   as   food   is   both   conducive   to   and   requisite   for   good  health and longevity of human life. In order to improve the  O/TAXAP/1162/2013 JUDGMENT quality of the cattle, it is very essential to use a high quality  bulls.   Hence   to   produce   and   to   get   produced   the   best  pedigreed   bulls   and   to   castrate   the   scrub   bulls   and  propagate the work   to prepare bullocks by castrating the  bulls which do not become good bulls.

We   are   wholly   in   agreement   with   the   view   of   the   Tribunal.   The  objects of the Trust clearly establish that the same was for general public  utility and where for charitable purposes. The main objectives of the trust  are ­ to breed the cattle and endeavour to improve the quality of the cows   and   oxen   in   view   of   the   need   of   good   oxen   as   India   is   prominent  O/TAXAP/1162/2013 JUDGMENT agricultural   country;   to   produce   and   sale   the   cow   milk;   to   hold   and  cultivate agricultural lands; to keep grazing lands for cattle keeping and  breeding;   to   rehabilitate   and   assist   Rabaris   and   Bharwads;   to   make  necessary arrangements for getting informatics and scientific knowledge  and to do scientific research with regard to keeping and breeding of the  cattle,   agriculture,   use   of   milk   and   its   various   preparations,   etc.;   to  establish other allied institutions like leather work and to recognize and  help   them   in   order   to   make   the   cow   keeping   economically   viable;   to  publish   study   materials,   books,   periodicals,   monthlies   etc.,   in   order   to  publicize the objects of the trust as also to open schools and hostels for  imparting eduction in cow keeping and agriculture having regard to the  trust objects.