Disseminating Bhagavad Gita Teachings Can't Be Treated As Religious Propagation: ITAT Chandigarh

The Income Tax Appellate Tribunal (ITAT), Chandigarh has recently held that dissemination of the philosophical teachings of the Bhagavad Gita cannot, by itself, be equated with the propagation of religion or the advancement of a particular religious denomination.

Therefore, the tribunal held that World Sankirtan Tour Trust was a charitable institution, not a religious entity, and was entitled to tax benefits because its dominant objects and actual activities were charitable in nature.

"The Bhagavad Gita is universally acknowledged as one of the greatest philosophical treatises on ethics, duty, governance and human conduct. Its eighteen chapters expound the principles of Karma Yoga, Jnana Yoga, Dhyana Yoga, Sannyasa, self-discipline, renunciation of attachment, equanimity, devotion through righteous conduct and self-realisation. The central theme of the Gita is not ritualistic worship but ethical living, selfless action and moral responsibility. Even the Geeta was source of inspiration during the freedom struggle and Lokmanya Bal Gangadhar Tilak, Mahatma Gandhi and Acharya Vinoba Bhave have written various books on the Geeta and referred to it as a guiding force for the Freedom Movement," a coram of Judicial Member Laliet Kumar and Accountant Member Manoj Kumar Aggarwal observed.

The bench further observed: "These teachings are universal ethical principles applicable irrespective of religion, caste or nationality. They are extensively studied worldwide in the fields of philosophy, leadership, management, psychology, and public administration. Dissemination of such universally accepted ethical philosophy cannot, by itself, be equated with the propagation of religion or the advancement of any particular religious denomination."

The bench also directed the Commissioner of Income Tax (Exemptions) to issue a fresh registration certificate under Section 12AB recognising the trust as a charitable institution instead of a religious entity.

The trust was constituted to protect and preserve stray cattle, maintain gaushalas, provide shelter and veterinary care to abandoned and infirm cows, and organise programmes promoting personal, social and national values.

The Commissioner (Exemptions) accepted the genuineness of these activities and granted registration under Section 12AB. However, the trust was categorised as a "Religious Entity". Its application for approval under Section 80G was rejected after the commissioner found that it conducted and broadcast discourses on the Bhagavad Gita.

The trust challenged the decision, arguing that its principal activities were charitable. It said a clause in its trust deed relating to the renovation and maintenance of temples had never been acted upon. It also furnished an undertaking stating that it had never undertaken, and would not undertake in future, any activity relating to the renovation or maintenance of temples or other religious places.

The trust further argued that the Bhagavad Gita is a universally recognised philosophical and ethical treatise whose teachings promote universal human values. Alternatively, it submitted that even if any of its activities were regarded as religious, the expenditure remained below the statutory threshold under Section 80G(5B).

The Revenue defended the commissioner's orders, arguing that the trust's dissemination of Bhagavad Gita discourses showed its activities were substantially religious in nature. It said this attracted the bar under Explanation 3 to Section 80G(5).

The tribunal, however, noted that the commissioner had accepted the trust's charitable activities, including maintaining gaushalas, rehabilitating abandoned cattle and providing veterinary care. It held that a trust's character must be assessed based on its dominant objects and actual activities, not on an isolated clause in the trust deed that had never been implemented.

It also observed that protecting cows and maintaining gaushalas advance the constitutional objectives under Articles 48 and 51A(g) of the Constitution. Such activities cannot be treated as religious merely because they are also revered in certain religious traditions.

On the rejection of approval under Section 80G, the tribunal held that the commissioner had wrongly equated dissemination of the Bhagavad Gita with propagation of religion. It observed that the Bhagavad Gita is a universally acknowledged philosophical treatise on ethics, duty, governance and human conduct. Dissemination of such ethical philosophy, the tribunal held, cannot by itself be regarded as propagation of religion or the advancement of a particular religious denomination.

The bench further held that the commissioner had overlooked the protection available under Section 80G(5B), which permits approval where expenditure on religious activities remains within the prescribed limit. It noted that no finding had been recorded that the trust's expenditure exceeded the statutory threshold. The trust's assertion that such expenditure remained below the prescribed limit had also gone uncontroverted before the tribunal.

Accordingly, the tribunal modified the trust's registration under Section 12AB. It directed the Commissioner of Income Tax (Exemptions) to issue a fresh registration certificate recognising the trust as a charitable institution and to grant it approval under Section 80G of the Income Tax Act.

For Assessee: Advocate Sandeip K. Nagar

For Revenue: Kusum Bansal, Pr. CIT-DR