- (1.) By way of this appeal, the appellant-department has challenged the judgment and order passed by the Tribunal whereby the Tribunal has allowed the appeal of the assessee reversing the finding of the CIT (A).
(2.) This Court while admitting the appeal on 10.03.2015 has framed the following substantial questions of law:- "(i) Whether in the facts and circumstances of the case, the Tribunal was justified in law in directing to grant approval u/s.80G(5) to the respondent despite the fact that the trust does not fulfill the conditions u/s.80G(5)(i) of the Act. (ii) Whether in the facts and circumstances of the case, the Tribunal was justified in law in directing to grant approval u/s.80G(5) to the respondent despite the fact that the activities of the trust cannot be said to be charitable. (iii) Whether in the facts and circumstances of the case, the Tribunal was justified in law in allowing the appeal of the respondent assessee and directing the approval of exemption u/s.80G(5) when activity of running of school is entire independent and has no connection with the Museum."
(3.) Counsel for the appellant has taken us to the order passed by the CIT(A), Jaipur whereby the CIT(A) has rightly dismissed the application for grant of exemption u/s 80 G(5)(vi) of the assessee. While refusing the benefits under Section 80G(5)(vi), the CIT(A) has observed as under:- "3.1 It is clear on perusal of various clauses of trust deed and objects of the trust that the trust was created for the purpose of up keep and maintenance of the museum containing the pictures, paintings, portraits, works of art, several caskets, silver ware, china ware, glass ware, cut glass, books of arts, ornaments pieces, rugs, antics, curiors, manuscripts and other collection of articles and things of City Palace, Jaipur entrusted to the said trust. These articles and things collectively have been referred to as "said collection" or "presents" in the trust deed. 3.2 It is observed that apart from running of the museum, the trust started running a school named Maharaja Sawai Bhawani Singh School, in Jagatpura, Jaipur as a unit of this trust from F.Y.2007-08. This activity of running of school is not covered under the objects of the trust given in the trust deed. Therefore, the activity of running school cannot be held under the trust because as per the trust deed, the trust was not authorized for this activity of running school. 3.3. On being confronted to the A.R. of the assessee, it was submitted by the A.R. that clause 22 of the trust deed authorizes the trustees to use immovable property of the trust for the purpose of any scheme of charity. Running of School is a charitable activity and therefore, running of school is covedred under the trust deed. The contention of assessee was considered but not found acceptable. Relevant extract of para-22 of the trust deed is reproduced as under:- " ...it shall also be lawful for the trustees to permit an a immovable property for being part of the trust fund to be held used and enjoyed for the purpose of any scheme of charity or other purpose of these presents including the office of the trustees and their officials and employees for the purpose of these presents as also the residence of such of the employees, the trustee consider necessary for the purpose of these presents. 3.4 The A.R. of the assessee has misrepresented the above para. In the para, the phrase "for the purpose of these presents" have been used at two places, which restricts the scope of words "for scheme of charity or other purpose" and stipulates that whatever activity is done, it must be for the purpose of presents i.e. collection of the museum. This para-22 authorizes the activity only, which is for the purpose of collection of museum and has relation with the collection of museum and not any other activity. The activity of running school is entirely independent activity and is not at all related to the collection of museum. So, the assessee cannot take shelter of above para-22 for authorizing the activity of running school by the trust deed. 3.5 In view of the above discussion, it becomes clear that the activity of running school is not covered under the objects of the trust and this activity cannot be held under the trust.";