Assessee had rented out ‘Dharamshala’ to the public at large for multi-facet purposes, i.e., marriage functions, political, religious and other social functions, etc. and had generated receipts from booking and cancellation charges, repairing charges, electricity charges, etc., which were collected/deducted from security deposits from persons who booked ‘Dharamshala’ for above-mentioned activities. Assessing Officer held that the assessee was carrying out commercial activities of letting out ‘Dharamshala’ to the public at large for multi-faceted purposes and therefore, it was in substance carrying on a business. It was further held that since gross receipts of the assessee Trust during the year under consideration amounted to ₹ 15.89 lakhs, which was more than the threshold amount of ₹ 10 lakhs as contemplated in the second proviso to section 2(15), therefore, activities of the assessee and surplus therein generated were hit by provisions of section 2(15).  Tribunal upheld the order of the Assessing Officer. On appeal, the Court held that  Dharamshala was let out for charitable purposes mentioned in the trust deed on a cost basis or nominally above cost to cover up charges, as demonstrated by the assessee and the primary and predominant object of the Trust was charitable. Therefore, authorities were unjustified in holding that assessee Trust was carrying out commercial activities by letting out Dharamshala for various purposes and committed grave legal error in holding that assessee Trust was involved in commercial activities. Order of the Tribunal set aside.  (AY. 2011-12)