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TMI Blog2012 (3) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... , had applied for renewal of its approval under Section 80G of the Act vide application dated 10.3.2010 in Form 10G prescribed under Income-tax Rules, 1962. Assessee was already registered under Section 12AA of Income-tax Act, 1961 (in short 'the Act') vide C. No. DIT(E) 2(110) 91-92 dated 9.8.1991. Ld. DIT(E) noted that receipts of the assessee from sponsorship fees, sale of tickets and music coaching for financial years 2007-08 to 2009-10 was in excess of Rs. 10 lakhs and assessee was put on notice why its application for renewal of approval under Section 80G of the Act should not be rejected in view of the amendment made to Section 2(15) of the Act by Finance Act, 2010 with retrospective effect from 1.4.2009 adding a second proviso there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , assessee's reliance on the decision of Hon'ble jurisdictional High Court in the case of Sri Thyaga Brahma Gana Sabha (supra) would also not help it since advancement of music was only an object of general public utility and therefore, assessee had to satisfy the condition spelt out in first proviso to Section 2(15) of the Act which it had not done. He, therefore, rejected the application for renewal filed by the assessee. 3. Now before us, learned A.R., strongly assailing the order of DIT(E), submitted that assessee was a society engaged in encouraging classical dance and music and conducting dance and music programmes of reputed performers and musicians for advancement of music. As per learned A.R., assessee's object was development of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. Learned D.R. pointed out that the second proviso to Section 2(15) of the Act was introduced by Finance Act, 2010 with retrospective effect from 1.4.2009 and therefore, ld. DIT(E) had rightly refused to grant a renewal based on such amended law. According to him, the argument of the assessee that there was no change in the factual situation for taking a different view in the matter when the assessee was enjoying this approval for the period from 1.4.2006 to 31.3.2009 was ill conceived in view of the amended law. 5. We have perused the order of ld. DIT(E) and heard the rival submissions. There is no dispute that assessee was engaged in the advancement of music and fine arts, which was culturally important in the State of Tamil Na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; 7,43,250 9,88,069 Sale of Tickets 52,300 91,800 76,750 Fees for Music Coaching 4,25,900 4,16,350 3,90,850 Total 13,33,505 12,51,400 14,55,669 If we have a look at Section 2(15) of the Act which defines "charitable purpose", it runs as under:- 2.(15) "charitable purpose" includes relief of the poor, education, medical relief, [preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest,] and the advancement of any other object of general public utility: Provided that the advancement of any other object of general public utility shall not be a ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rade, commerce or business. When a person sponsors a music programme and sponsorship fee is paid to artist concerned, we cannot say that sponsorship fee is a receipt in the hands of the assessee which is in the nature of trade, commerce or business. Similarly, conducting music coaching for the purpose of advancement of various traditional music forms of State of Tamil Nadu, which is an integral part of cultural life of people of Tamil Nadu, cannot also be considered to be an activity in the nature of trade, commerce and business. This can at the best be considered as an educational pursuit. When there are colleges run for coaching music, we cannot say that training imparted in music is not education. In our opinion, the ld. DIT(E) took a ve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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