TMI Blog2012 (3) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... rammes - denial of renewal of application under Section 80G of the Act, when its registration under Section 12AA of the Act was intact, was unjustified [Mylapore Fine Arts Club v. Dy. DIT(E) in I.T. Appeal No. 1706/Mds/2010 ] - advancement of traditional musical culture of Tamil Nadu and conducting music programmes sponsored by various persons and sponsorship fee so received, distributed among the artists, can never be considered as an activity in the nature of trade, commerce or business - assessee was eligible for renewal of approval under Section 80G of the Act - appeal filed by the assessee is allowed. - IT APPEAL NO. 494 (MDS.) OF 2011 - - - Dated:- 16-1-2012 - ABRAHAM P. GEORGE, GEORGE MATHAN, JJ. V. Jagdisan for the Appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, these were issued to visitors who came to see a particular programme, who were made temporary members of the society for that purpose. Insofar as music coaching was concerned, argument of the assessee was that imparting music coaching was nothing but education, and per se was charitable in nature. Apart from the decision of Hon'ble jurisdictional High Court in the case of CIT v. Sri Thyaga Brahma Gana Sabha [1991] 188 ITR 160/[1990] 52 Taxman 395 (Mad.), assessee also relied on following decisions of co-ordinate Bench of this Tribunal in support of its renewal application:- 1. Maraa v. ITO (Exemptions) [2010] 130 TTJ 489 (Bang.) 2. Cane Development Council v. CIT [2010] 35 SOT 308 (Delhi) 3. Himachal Pradesh Environ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for paying the artists and there was no commercial intention or any flavour of trading involved of the activities of the assessee. According to him, ld. DIT(E) went wrong in concluding that sponsorship fee and fee for music coaching were all emanating from any business, trading or commercial activities when the purpose of the assessee was not commercial at all. He also submitted that the assessee was having registration under Section 12AA of the Act vide order dated 9.8.1991 and this was still continuing. According to him, denial of renewal of application under Section 80G of the Act, when its registration under Section 12AA of the Act was intact, was unjustified. Reliance was also placed on the decision of co-ordinate Bench of this Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove objects, to hold musical entertainments, discourses, dance recitals, group singing, dramas, exhibitions, lectures, seminars, competitions, etc. 3. To arrange for the exposition of music and other arts by competent artists and to encourage deserving talent. 4. To conduct schools for imparting instructions in the above arts on correct lines and thus afford facilities for the propagation and development of such arts. 5. To do such other things or undertake activities as are incidental and are conducive to the attainment of the above objects. As held by the co-ordinate Bench of this Tribunal in the case of Mylapore Fine Arts Club ( supra ), there cannot be two opinions that in the State of Tamil Nadu, which is a land of mus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity:] [ Provided further that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is [ten lakh rupees] or less in the previous year;] No doubt, it has been specifically provided in the first proviso that advancement of any other object of general public utility shall not be a charitable purpose if it involves any activity in the nature of trade, commerce or business, or rendering any service in connection with trade, for a cess or fee or any other consideration. The third proviso excludes from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the nature of trade, commerce or business. Assessee, in our opinion, was not carrying on any activity in the nature of trade, commerce or business but was carrying on its avowed object of advancement of fine arts and traditional art forms, which cannot be considered as a commercial or business activity. The nature of receipts of the assessee, in our opinion, will not come within the purview of first proviso to Section 2(15) of the Act except for sale of tickets and the receipts from sale of tickets were well below a sum of Rs. 10 lakhs. We also note that the assessee has been registered under Section 12AA of the Act and such registration is still in vogue. In our opinion, assessee was eligible for renewal of approval under Section 80G of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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