TMI Blog2004 (1) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... ilable on record under section 80G of the Act. In the case on hand, I have already ruled that the authority is correct on the facts and it cannot be said that any case as such is made out by the petitioner. In these circumstances, I do not find any justifiable grounds to interfere with a well-reasoned order of the authority on facts. – Petition rejected - - - - - Dated:- 8-1-2004 - Judge(s) : R. GURURAJAN. JUDGMENT R. Gururajan J. - The petitioner, Ganjam Nagappa and Son is challenging the order passed by R-1, Director of Income-tax (Exemption), dated May 29, 2002, annexure "F". The petitioner is a charitable trust registered under section 12A of the Income-tax Act, 1961, by the Commissioner of Income-tax, Karnataka. The Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction in respect of donations to certain funds, charitable institutions, etc. A large number of institutions, firms and bodies corporate are reflected in the said provision. Subsection (5) provides for certain exemption in the matter of payment of tax subject to certain conditions. Sub-section (5) provides for an approval in the matter of exemption in terms of section 80G of the Act. In the case on hand, as I mentioned earlier, the petitioner has obtained exemption for several years. Renewal was sought. Rule 11AA provides for consideration of approval of an institution or fund under section 80G, sub-section (5). Rule 11AA provides for an application being made in terms of Form No. 10G. The said application is to be accompanied by copy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atisfaction is necessary on the part of the authority for renewal purposes. The reason given by the authority cannot said to require my interference in the case on hand. In my view, a trust cannot be a tool for furtherance of trade interest of another commercial organisation. The purpose of section 80G is not for further promoting commercial activities. The order is based on the material available on record. No contra material is placed before this court to dislodge this factual finding arrived by the Commissioner. At this stage, I must notice a few judgments cited by Sri Javali, learned counsel appearing for the petitioner. It is no doubt true that the money spent towards development or furtherance of music performance by itself would no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent is distinguishable on the facts. In the case on hand, the authority has not rejected the case of the petitioner on the ground that music performance as held by the trust is not any way opposed to the objects of the trust. What was objected to was the way in which things were conducted by the trust by using concerts to further its business interests. This judgment is equally not applicable to the facts of this case. The third case is CIT v. Trustees of Visha Nima Charity Trust [1982] 138 ITR 564 (Bom). In that case, the court notices the receipt of voluntary contributions from institutions to hold in favour of the trust. The court notices that the contribution received could never be recorded as income derived by the assessee-trust fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... faction of the authority with regard to the renewal or registration. It stands to logic because section 80G provides for exemption from payment of Income-tax. The revenue to the Government is denied on account of exemption in terms of laws. Therefore, the authority has to look into the object of the institution and also the facts and circumstances of each case to satisfy itself with regard to the charitable character and with regard to its activities in terms of section 80G read with rule 11AA of the Rules. Only on being satisfied with the objects, registration of renewal is permissible in terms of the facts available on record under section 80G of the Act. In the case on hand, I have already ruled that the authority is correct on the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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