Organising Ramkatha, Bhagwat Katha Not 'Wholly Religious', 80G Approval Cannot Be Denied To Charitable Trust: ITAT Ahmedabad

The Income Tax Appellate Tribunal at Ahmedabad has recently held that a charitable trust cannot be denied approval under Section 80G of the Income Tax Act merely because one of its objects provides for organising Ramkatha, Bhagwat Katha, and similar programmes for raising funds.

A coram of Judicial Member Sanjay Garg and Accountant Member Narendra Prasad Sinha observed that object of the trust “cannot be said to be wholly or substantially religious in nature,” and that organising Ramkatha and Bhagwat Katha “cannot be said to be for the purpose of propagating any religion.”

The tribunal directed the Commissioner of Income Tax (Exemption), Ahmedabad, to grant approval under Section 80G(5) to Dharamdas Charitable Trust from the date of its application.

The trust, which is registered under Section 12A of the Act, had applied for approval under Section 80G(5). The Commissioner rejected the application on the ground that one of the objects of the trust was religious in nature.

The Commissioner noted that although it was not a case of incurring expenditure exceeding the limit prescribed under Section 80G(5B), approval could not be granted if any object of the trust was wholly or substantially religious in nature.

The objection was based on an object permitting the trust to organise Ramkatha, Bhagwat Katha, Navchandi Yagna, and Gayatri Yagna for raising funds.

Before the tribunal, the record showed that the other objects of the trust included establishing and maintaining educational institutions, distributing books and uniforms to needy students, starting computer classes, setting up blood banks and medical centres, helping the poor and victims of natural calamities, running food and water centers, supporting widows and orphans, and maintaining animal shelters.

After perusing the objects, the tribunal held that they were charitable in nature and related to education, medical relief, help to the poor and welfare of animals.

Addressing the disputed object, the tribunal observed that the trust, through the said object, “doesn't intend to propagate any religion,” and that “Ramkatha and Bhagwat Katha are organised for the benefit of public at large, irrespective of the religion they profess, from the preaching of saints and coupled with the historical events and in a way guide the society to lead a moral and spiritual, contended and happy life and to remain away from sins, immoral and bad act and conduct and for the peace, progress and welfare of one and the all.”

It further noted that the programmes were “for the purpose of raising of funds which can be used on the other charitable activities, such as medical relief and help to the poor and unprivileged.”

Holding that there was no justification in rejecting the application, the tribunal set aside the Commissioner's order and directed that approval be granted.