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2017 (7) TMI 862 - AT - Income TaxEligibility to exemption u/s 11 - activities of the assessee trust is that of holding Sangeet Sammelans and Music Festivals for promotion of music and music artists - Held that:- The nature of receipts under all heads (other than interest and donation) are primarily in the form of voluntary contributions by way of sponsorship and financial aids provided by cultural and charitable societies, Government Bodies, individuals and other private and public sector entities for promotion of social and cultural objectives and not for any trading, commercial or business consideration. It may be noted that all the objectives of trust are subservient to its main object of promotion of music and music artists in India. Raising the artists taste of the country by public performances, dramatic, musical, etc., would be an educational purposes. The nature of receipts clearly shows that the activities of the assessee trust were wholly and exclusively focused on pursuing its main objects of promoting music in the masses. Further, it was submitted that the AO is factually wrong in alleging that the books of account with supporting bills and vouchers were not produced for verification. The written submissions filed on 01.02.2013 and again on 20.02.2013 duly record that in response to the specific requirement of the A.O, the books of account and vouchers were produced for verification. Therefore there is no basis for arbitrary disallowance of adhoc 30% of expenditure stated under the head 'Operating and Administrative Expenses' amounting to ₹ 5,20,086/-. These expenses were spent by way of application of income for the purpose of carrying on the charitable activity and such application of income is fully admissible u/s 11. - Decided in favour of assessee.
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