Income Tax Appellate Tribunal - Chennai
The Mylapore Fine Arts Club, Chennai vs Assessee on 7 September, 2011
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 The Deputy Director of
45-Musiri Subramaniam Vs. Income-tax(Exemptions)-I,
Salai, Mylapore, Chennai-4. Chennai.
PAN AAAAT0234G.
(Appellant) (Respondent)
Appellant by : Shri G.Sitaraman, FCA,
Respondent by : Dr. I.Vijayakumar, IRS, CIT-DR.
Date of Hearing : 7th September, 2011
Date of Pronouncement : 12th September, 2011
ORDER
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 Income- tax(exemptions), at Chennai dated 25-1-2010. The appeal arises out of the order rejecting the application made by the assessee for granting approval under section 80G of the Income- tax Act, 1961.
-2- ITA 1706 of 2010 2. The Director of Income-tax(Exemptions) has
rejected the application filed by the assessee on the ground that the activities of the assessee society fall under the amended definition of section 2(15) relating to advancement of any other object of general public utility. It is the view of the Director of Income-tax(Exemptions) that the activities of the society 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 assessee, we heard Shri G.Sitaraman, the learned chartered accountant, appearing for the assessee and Dr. I.Vijayakumar, the learned Commissioner of Income-tax, appearing for the Revenue.
4. The assessee is carrying on the activities of organising cultural activities in the city of Chennai. 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. The assessee is giving more importance to the promotion of classical
-3- ITA 1706 of 2010 Carnatic Music and classical dance forms of South India. 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 utility. The State of Tamil Nadu is the land of music, dance and classical arts. The people of Tamil Nadu are really endearing 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. Therefore, 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 enjoying the benefits available under section 11 of the Income-tax Act, 1961.
There is no case against the assessee that it is carrying on activities for making profit. There is no case that the surplus of
-4- ITA 1706 of 2010 the assessee trust is diverted for the personal user of any of the trustees or interested parties.
6. In the modern society, perseverance and advancement of traditional and classic forms of music and arts cannot be achieved without the support of the public. Government alone cannot support such activities. Participation of the public is essential. Therefore any contribution made to such organizations by the members of public has to be treated as contribution for a public cause. The assessee trust 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 assessee is organising cultural programmes. That is the main activity 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 involves heavy amount of cost.
-5- ITA 1706 of 2010
8. We find that this is a fit case where approval under section 80G should be granted. The Director of Income- 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 12th of September, 2011 at Chennai.
Sd/- Sd/-
(Hari Om Maratha) (Dr. O.K.Narayanan)
Judicial Member Vice-President
Chennai,
Dated the 12th September, 2011.
V.A.P.
Copy to: (1) Appellant
(2) Respondent
(3) CIT
(4) CIT(A)
(5) D.R.
(6) G.F.