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TMI Blog2013 (12) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... 3-2013 - Dr. O.K. NARAYANAN AND S.S.GODARA , JJ. For the Appellant : D. Rajasekaran. For the Respondent : Dr. S. Moharana. ORDER:- PER : Dr. O. K. Narayanan This appeal is filed by the assessee. The assessee is a trust. It had applied for renewal of exemption under section 80G through its application in Form 10G filed on March 26, 2012. This application was rejected by the Director of Income-tax (Exemptions) at Chennai through his order dated October 1, 2012. The present appeal is filed against the said order of the Director of Income-tax (Exemptions) at Chennai. 2. The assessee was registered under section 12AA as a charitable trust in 1995. Simultaneously, the assessee was also granted recognition under section 80G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of giving Rs. 10,000 to Shri R. Ramesh cannot be considered as a charitable activity. 5. In view of the above report of the Assessing Officer, the assessee was granted an opportunity of hearing. The assessee explained that it had paid Rs. 10,000 to M/s. Sri Hari Musicals, which has provided a keyboard to Shri R. Ramesh, who is a qualified musician and that help was given in public interest as Shri Ramesh was training a lot of youngsters in music. 6. Because of the above reasons stated by the Assessing Officer in the remand report, the Director of Income-tax (Exemptions) rejected the renewal application filed by the assessee. 7. We heard Shri D. Rajasekaran, learned counsel appearing for the assessee and Dr. S. Moharana, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri R. Ramesh, is also not serious to reject the application of the assessee. One of the objects of the assessee-trust is carrying on activities of education and learning. Music is also a great discipline in the field of learning. The assessee-trust helping a poor man to purchase a keyboard, enabling him to take classes to youngsters, is definitely a laudable act. It is definitely charitable in nature. 8. When we have expressed our view in the above paragraphs, it is logical to expect that we will allow the appeal filed by the assessee and direct the competent authority to grant exemption to the assessee. 9. But, we are unable to do that. The law does not permit to give approval under section 80G to the assessee, even though this aspe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... go for obtaining registration under section 12AA as a charitable institution. If it is converted into a charitable trust, still, it is doubtful whether it will get exemption under section 11 for the reason that the object of the mother entity is mainly to serve its members. Again, there is a clash between serving of members and charitable activities. 12. Because of these inherent clashes and different status designed in law, it is not possible to grant exemption without disturbing the status of mutual concern. The mother body in the present case, Club of Masons has constituted the trust for the purpose of carrying on charitable activities. Therefore, it is a de facto extension of the Club of Masons themselves. By constituting such an ind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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