9911796707
TMI Blog2017 (5) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... auditorium and providing space for rent in lieu of fee, which were commercial in nature and hence, 1st proviso to Section 2(15) of the Income Tax Act, 1961 is applicable in this case." 3. The brief facts of the case are that the assessee is a trust which was constituted by the Trust Deed/Memorandum of Association dated 15.02.1958 and is also registered under section 12AA(1) on 09.02.1977. The main activity of the assessee is to promote artistic and cultural expression through dance and drama etc. The assessee owns an auditorium at 4, Safdar Hashmi Marg, New Delhi which was claimed to have been used for promoting the objects of the trust. For this the auditorium is also rented out to the public. The assessee also supports activities of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion etc. in its own auditorium. For the relevant assessment year 2008-09 it returned a total income of Rs. 1,67,83,000/-. It incurred expenditure of Rs. 23 lakhs towards repairs and maintenance and other running expenses in the maintenance or the building. "Nil income" return was filed on account of the fact that receipts were exempted. The assessment order inter alia ruled that the expenditure towards donation (Rs.23 lakhs) made to other trust was inadmissible and that since the respondentassessee did not carry out any charitable activity but merely let out its premises to other organization as well auditorium to other theatre groups etc., it was engage in a commercial activity, 4. The assessee's appeal was allowed by the Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vities on the part of the trust. In this connection we are have to submit that our was formed as Charitable Trust in 1958. It was duly registered u/s 12A vide Registration no. DLI(C)(T-422) Dt.9/2/1977. The trust is the owner of an auditorium constructed at plot measuring 0.603 Acres situated on Barakhamba Road (opposite Mandi House) i.e. 4, Safdar Hashmi Marg, New Delhi. The trust is using the Auditorium for carrying on charitable purposes. Object of the Trust is a promote artistic and cultural expression through drama, music, education cognate activities. Accordingly the Auditorium is made available for performance in the nature of dance drama, music, education etc. Auditorium is made available for normally to schools, colleges, theatr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld, we do not see any reason to interfere with the impugned order in this aspect. As far as second question i.e. donation of Rs. 23 lakhs is concerned, this Court noticed that the same has not been urged on behalf of the revenue in its appeal. Nevertheless this aspect is covered by the previous ruling in ITR 134/1986 dated 13.11.2007. The Court observed in that judgment as follows: "11. As far as the third question is concerned, on examining the orders passed by the authorities, in which the objects of both the Assessee Trust as well as the Shriram Centre for Art and Culture have been discussed, we are of the considered view that the Tribunal was correct in its conclusion that the sum of Rs. 50,000/- deposited with Shrirain Centre for Ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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