VINEET KOTHARI,J. - (1.) The Assessee, M/s.Nadigar Sangam Charitable Trust, T.Nagar, Chennai, a Trust created for the benefit of artistes and actors, has filed this appeal under Section 260-A of the Income Tax Act, 1961 aggrieved by the order of the learned Income Tax Appellate Tribunal, 'B' Bench, Chennai dated 29th February 2008 for the assessment year 2001-2002, whereby the learned Income Tax Appellate Tribunal allowed the appeal of the Revenue, reversing the order of the first Appellate Authority, Commissioner of Income Tax (Appeals), and held that the Assessee Trust was not entitled to exemption under Section 11(1)(a) of the Act for the assessment year 2001-2002 in respect of Rs.52.00 lakhs spent by it for purchasing the leasehold rights in respect of the immovable property, an Auditorium, which was intended to be used for serving the objects of the said Trust, including from the rental income from it.
(2.) The object of the Assesse Trust, as discussed in the Assessment Order itself, as per the Trust deed dated 30th May 1987 is to provide educational assistance to the children of poor artistes; to provide medical relief to the poor artistes and others; to provide relief to aged and incapacitated artistes and others and to provide such other assistance to artistes and their families, including to provide education in the area of art, culture and such other vocational training in order to promote employment etc.
(3.) The Assessing Officer found that the advance amount of Rs.52.00 lakhs given by the Assessee was an 'Investment' and could not be treated as 'application of income' towards the object of the Trust and therefore, the Assessee was not entitled to exemption to the said extent of advance given by it to the lessor for taking the leasehold rights in respect of the said immovable property.;