During the year society charged transport fee for providing facility to students and staff for transport to and from school to respective houses of children in given routeS. During assessment proceeding, AO disallowed  the said fees on the premise that the aforesaid activity amounts to business in view of proviso to S. 2(15) of the Act and thus assessee would not be entitled for exemption under S. 11(4A) of the Act.  AO further noted that surpluses generated from running of transport business were neither distributed among students nor was reduced from fee of next year and the institution can also run without the transport facility.  On assesse’s appeal to CIT(A) no relief was granted.  On assesses appeal to Tribunal held that the activity of running school buses exclusively for the  students and staff, is an intrinsic part of the activity of running a school.  These activities of the assessee are not in nature of business in as much as transport is also incidental to attainment main object of Assessee trust of the education Therefore, provisions of S.  11(4A) would not be applicable.  (AY.  2010-11)