The assessee is a charitable trust registered u/s 12A and 80G of the Act. In the relevant AY, the assessee-trust received studio charges of Rs 16,72,197/-from various artists. The AO held that the studio was rented to the artists with an intention to make profits in the shield of charitable activities and taxed such studio charges as business income of the Assessee under S.11(4A) of the Act. CIT(A) upheld the order of the AO. The Tribunal observed that Assessee is a charitable trust engaged in teaching Indian Classical Music which falls within the field of “education”. Since the trust is engaged in education, the proviso to section 2(15) does not apply as clarified by CBDT Circular No. 11 dated 19.12.2008 even if it involves the carrying a commercial activity. The tribunal noted the history of the Trust observed that the receipts of Rs. 16,72,197/-are at a subsidized fees and the activities of the studios are carried on in order to achieve the main object of the Trust and cannot be construed as a business. Reliance has been placed on the judgement of Madras High Court in the case of Sri Thyaga Brahma Gana Sabha 188 ITR 160 (Mad) court. (AY.  2010-11, 2012-13)