Dharamdas Charitable Trust Vs CIT (Exemption) (ITAT Ahmedabad)
Moral/Spiritual Events ≠ Religious Purpose- Fundraising Through Kathas Not Religious Object Ramkatha for Charity Is Not Religion: ITAT Directs 80G Approval
Assessee-trust, registered u/s 12A, applied for approval u/s 80G(5). CIT(E), by order dated 22.11.2024, rejected the application holding that one of the trust’s objects—Object No. 9, permitting organisation of Ramkatha, Bhagwat Katha, Navchandi Yagna, Gayatri Yagna etc. for the purpose of raising funds—was religious in nature. He held that since one object was “wholly or substantially religious”, approval u/s 80G(5) could not be granted.
Tribunal examined the trust deed in detail. Objects 1 to 8 related to education, skill development, blood bank, health care, relief to poor, shelter for widows/orphans, food centres, animal welfare & panjrapole—clearly charitable. Tribunal held that Object 9 was not religious in substance, as the trust did not intend to propagate religion but only to organise public discourses/Kathas as fundraising events to support other charitable activities. Tribunal noted that Ramkatha/Bhagwat Katha are open to all, are moral/spiritual events, & not restricted to a particular religion. These activities, when used solely for raising funds for charitable purposes, cannot render the trust as having a substantially religious object.
Tribunal found that CIT(E)’s conclusion was unjustified, as the trust’s main & dominant objects were charitable & no expenditure beyond 5% was incurred for religious purposes. Holding that trust fulfilled conditions u/s 80G(5), Tribunal set aside the rejection order & directed CIT(E) to grant approval from the date of application.
