KALASADHANALAYA,CHENNAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHENNAI

After consideration of the objectives of the trust, the CIT(Exemptions) passed an order dated 30.09.2024 rejecting the approval under Section 80G of the Act for the reason that the primary object is to promote awareness on traditional dance of India and to facilitate attainment of expertise in performing dance. Thus the activities of the trust cannot be construed for charitable purpose as defined in Section 2(15) of the Act.

Aggrieved by the order of CIT (Exemptions), the assessee preferred an appeal before us. The learned AR for the assessee submitted that assessee is a trust established by a trust deed dated 15.07.1994 with a primary objective of educating, promoting and imparting knowledge, practice and training in the school of arts specifically, classical dance, bharatanatyam, kuchipudi and other related studies in stage management, vocal music, etc. The learned AR submitted that the objective of the trust is dedicated to a structured and systematic process imparting education in traditional dance forms and allied arts which align definition of “education” under Section 2(15) of the :-4-: ITA. No:3056/Chny/2024 Act. In support of the argument, the learned AR relied on the following judicial precedents:  Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234 (SC): The Supreme Court held that “education” under Section 2(15) includes any systematic activity that imparts knowledge or skills to the public, beyond formal schooling.  The Mylapore Fine Arts Clubm ITAT Chennai C Bench ITA 1706/MAD/2010: Hon’ble ITAT Chennai C Bench recognized preservation of cultural importance dance and musics eligible for charitable benefits.  Abhinayavani Nritya Niketan –ITAT Hyderabad Bench A ITA 994 & 995 /HYD/2019 Held that education of Kuchipudi comes under definition of charitable activities under Section 2(15) of Income Tax Act, 1961.  Sri Thiya Brahma Gana Sabha, Chennai ITAT bench D, ITA 1677/MAD/2015, held that imparting education in dance and music is charitable in nature.

Further, the learned AR stated that the assessee’s activities are conducted without any profit motive and are aimed at benefiting the public at large. Further, the learned AR stated that the application of fund has been made towards educational activities such as conducting class work, dance and cultural programs and hence, trade for directing the learned CIT (Exemptions) to grant the approval under Section 80G of the Act.

Per contra, the learned DR submitted the order of the CIT (Exemptions) and prayed for confirming the same.

We have heard the rival contentions perused the material available on record and gone through the order of lower authorities along with the case laws relied on. It is an admitted fact that the trust exists from 15.07.1994 and has exemption under Section 12A of the Act along with the approval under Section 80G of the Act from inception. On perusal of the objects of the trust in Trust deed we find that the assessee is engaged in the promotion of an art and culture by educating the ancient / traditional dance culture to the students, which forms part of the education as per Section 2(15) of the Act. The relevant extract of the objects stated in the trust deed is given below:

Further, we find that the trust has spent the entire amount towards the expenditure related to the objects of the trust and hence there is no profit motive in the activities of the assessee. The receipts and expenditure of the trust have been captured in page nos.6 & 7 of the order of ld.CIT (E).

Further, the reliance on the judicial precedents by the ld.AR in support of the assessee’s objects are in the nature of public

We note that the Hon’ble Supreme court in Sole Trustee, Loka Shikshana Trust (Supra) has held that “education” u/s.2(15) includes any systematic activity that imparts knowledge or skills to the public, beyond formal schooling.

Further, this tribunal in the case of The Mylapore Fine Arts Club cited supra, observed that the preservation of cultural importance dance and music eligible for charitable benefits.

Similarly in the case Sri Thiya Brahma Gana Sabha, cited supra, held that imparting education in dance and music is charitable in nature.

Further, in the case of Abhinayavani Nritya Niketan –ITAT Hyderabad Bench (supra) held that education of Kuchipudi comes under definition of charitable activities under Section 2(15) of Income Tax Act, 1961.

In light of the above factual matrix and discussion, we are of the considered view that the ld.CIT(E) has erred in rejecting the application for approval u/s.80G of the Act. In the present

In the result the appeal of the assessee is allowed for statistical purposes.