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2022 (5) TMI 1059 - AT - Income TaxExemption u/s 11 - Profit motive - commercial activities as hit by the proviso to Sec. 2(15) - main objective of the trust was to run education institution, render financial assistance to students, help poor and destitute persons, rendering useful services in the field of community health etc. and assessee was running a Kalyanam Mandapam by the name M/s Abirami Chidambaram community hall at Kottupuram - HELD THAT:- Assessee is a registered charitable trust since the year 2000. It is enjoying exemption as applicable to a charitable trust. With a view to help poor and middle-class people, which is one of its main objects, the assessee runs Kalyanam Mandapam by the name M/s Abirami Chidambaram community hall at Kottupuram. This community hall is stated to have been conceived and constructed to help the poor people by enabling them to hire out a community hall for conducting family functions at moderate rental and also encourage fine arts by using the hall for music concerts and dance performances. It could also be seen that as against total receipts of Rs.1827.92 Lacs, the rental receipts are merely Rs.72.93 Lacs which is merely 4% of total receipts. The majority of rent received by the assessee include rental from marriage functions and rent earned from other events like cultural, spiritual and educational seminars etc. It is nowhere the findings that the assessee has not adhered to the conditions as applicable to a charitable trust or any of the objects of the assessee are profit-motive. Under these circumstances, it could not be concluded that the assessee carried out separate commercial activities and it was hit by the proviso to Sec. 2(15). The decision of this Tribunal in the case of Mylapore Fine Arts Club V/s DDIT [2011 (9) TMI 796 - ITAT, CHENNAI] supports the case of the assessee wherein it was held that in the modern society, perseverance and advancement of traditional and classical forms of music and arts could not be achieved without the support of the public. Participation of the public is essential. Therefore, any contributions made to such organizations by members of public have to be treated as contribution for a public cause. The assessee trust is receiving contributions in the above spirit and accordingly, it was held by coordinate bench that the assessee was eligible for approval u/s 80-G. We find that similar analogy is applicable in the present case. Moreover, this activity is regularly being carried out by the assessee over several years to achieve the objects of the trust. Therefore, the impugned activities could not be considered to have been hit by proviso to Sec.2(15). - Decided in favour of assessee.
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