The Mylapore Fine Arts Club, CHENNAI V. DDIT (Exemptions) - I, CHENNAI

ITA 1706/CHNY/2010

• Counselvise Citation: 170621714 RSA 2010
• Duration Of Justice: 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 07-09-2011
• Assessment Year: misc
• Appeal Filed On: 12-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR I V IJAYAKUMAR IRS
• Assessee Lawyers: G SITARAMAN
• Keywords: Charitable institution
• Section: 80G; 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER ITA NO.1706(MDS)/2010 THE MYLAPORE FINE ARTS CLUB 45-MUSIRI SUBRAMANIAM SALAI, MYLAPORE, CHENNAI-4. PAN AAAAT0234G. VS. THE DEPUTY DIRECTOR OF INCOME-TAX(EXEMPTIONS)-I, CHENNAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G. SITARAMAN, FCA, RESPONDENT BY : DR. I.VIJAY AKUMAR, IRS, CIT-DR. DATE OF HEARING : 7 TH SEPTEMBER, 2011 DATE OF PRONOUNCEMENT : 12 TH SEPTEMBER, 2011 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE ASSESSEE. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE DIRECTOR OF INCOM E- TAX(EXEMPTIONS), AT CHENNAI DATED 25-1-2010. THE A PPEAL ARISES OUT OF THE ORDER REJECTING THE APPLICATION M ADE BY THE ASSESSEE FOR GRANTING APPROVAL UNDER SECTION 80G OF THE INCOME- TAX ACT, 1961. - - ITA 1706 OF 2010 2 2. THE DIRECTOR OF INCOME-TAX(EXEMPTIONS) HAS REJECTED THE APPLICATION FILED BY THE ASSESSEE ON T HE GROUND THAT THE ACTIVITIES OF THE ASSESSEE SOCIETY FALL UNDER T HE AMENDED DEFINITION OF SECTION 2(15) RELATING TO ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. IT IS THE VIEW O F THE DIRECTOR OF INCOME-TAX(EXEMPTIONS) THAT THE ACTIVITIES OF THE S OCIETY ARE IN THE NATURE OF SALE OF TICKETS AND RENTING HALL AND SUCH ACTIVITIES CANNOT BE CONSIDERED AS CHARITABLE IN NATURE. 3. IN THE LIGHT OF THE GROUNDS RAISED BY THE ASSES SEE, WE HEARD SHRI G.SITARAMAN, THE LEARNED CHARTERED AC COUNTANT, APPEARING FOR THE ASSESSEE AND DR. I.VIJAYAKUMAR, T HE LEARNED COMMISSIONER OF INCOME-TAX, APPEARING FOR THE REVEN UE. 4. THE ASSESSEE IS CARRYING ON THE ACTIVITIES OF ORGANISING CULTURAL ACTIVITIES IN THE CITY OF CHENN AI. THE ASSESSEE IS INDULGED IN CARRYING ON SUCH ACTIVITIES ON A REGULAR BASIS, WHICH MAINLY INCLUDE CONDUCTING OF DANCE AND MUSIC PROGRAMMES OF REPUTED PERFORMERS AND MUSICIANS. TH E ASSESSEE IS GIVING MORE IMPORTANCE TO THE PROMOTION OF CLASSICAL - - ITA 1706 OF 2010 3 CARNATIC MUSIC AND CLASSICAL DANCE FORMS OF SOUTH I NDIA. THERE IS NO DISPUTE REGARDING THE ABOVE FACTS. 5. NOW, THE QUESTION IS WHETHER THE ABOVE STATED ACTIVITIES WOULD AMOUNT TO CHARITABLE ACTIVITIES IN THE NATURE OF ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC U TILITY. THE STATE OF TAMIL NADU IS THE LAND OF MUSIC, DANCE AND CLASSICAL ARTS. THE PEOPLE OF TAMIL NADU ARE REALLY ENDEARI NG THEMSELVES TO ATTEND CARNATIC MUSIC, CONCERTS, CLASSICAL DANCE PERFORMANCES, ETC. DANCE AND MUSIC ARE AN INTEGRAL PART OF THE CULTURAL LIFE OF THE PEOPLE OF TAMIL NADU. THEREFO RE, ACTIVITIES PROMOTING THE PERSEVERANCE AND ADVANCEMENT OF SUCH ARTS AND CULTURE ARE IN THE NATURE OF ACTIVITIES CARRIED ON FOR THE PURPOSE OF ADVANCEMENT OF OBJECTS OF GENERAL PUBLIC UTILITY. THE ASSESSEE IS A CHARITABLE TRUST. IT HAS BEEN GIVEN REGISTRATION UNDER SECTION 12A OF THE INCOME-TAX ACT, 1961. THE ASSESSEE IS E NJOYING THE BENEFITS AVAILABLE UNDER SECTION 11 OF THE INCOME-T AX ACT, 1961. THERE IS NO CASE AGAINST THE ASSESSEE THAT IT IS CA RRYING ON ACTIVITIES FOR MAKING PROFIT. THERE IS NO CASE THA T THE SURPLUS OF - - ITA 1706 OF 2010 4 THE ASSESSEE TRUST IS DIVERTED FOR THE PERSONAL USE R OF ANY OF THE TRUSTEES OR INTERESTED PARTIES. 6. IN THE MODERN SOCIETY, PERSEVERANCE AND ADVANCEMENT OF TRADITIONAL AND CLASSIC FORMS OF MUS IC AND ARTS CANNOT BE ACHIEVED WITHOUT THE SUPPORT OF THE PUBLI C. GOVERNMENT ALONE CANNOT SUPPORT SUCH ACTIVITIES. P ARTICIPATION OF THE PUBLIC IS ESSENTIAL. THEREFORE ANY CONTRIBUT ION MADE TO SUCH ORGANIZATIONS BY THE MEMBERS OF PUBLIC HAS TO BE TREATED AS CONTRIBUTION FOR A PUBLIC CAUSE. THE ASSESSEE T RUST IS RECEIVING CONTRIBUTIONS IN THE ABOVE SPIRIT. 7. THE DIRECTOR OF INCOME-TAX(EXEMPTIONS) HAS MADE AN OBSERVATION THAT THE ACTIVITIES OF THE ASSESSEE SOCIETY ARE THAT OF SALE OF TICKETS AND RENTING OF HALL. THE AS SESSEE IS ORGANISING CULTURAL PROGRAMMES. THAT IS THE MAIN A CTIVITY OF THE SOCIETY. HALL IS RENTED FOR THE PERFORMANCE OF SUCH PROGRAMMES. TICKETS ARE SOLD BECAUSE SOME OF THE COST HAS TO BE BORNE BY THE PUBLIC, AS ORGANISING OF SUCH PROGRAMMES INVOLV ES HEAVY AMOUNT OF COST. - - ITA 1706 OF 2010 5 8. WE FIND THAT THIS IS A FIT CASE WHERE APPROVAL UNDER SECTION 80G SHOULD BE GRANTED. THE DIRECTOR OF INC OME- TAX(EXEMPTIONS) IS DIRECTED TO PASS ORDERS GRANTING APPROVAL TO THE ASSESSEE UNDER SECTION 80G OF THE ACT. 9. THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON MONDAY, THE 12 TH OF SEPTEMBER, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 12 TH SEPTEMBER, 2011. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.