World Sankirtan Tour Trust Vs CIT (Exemptions) (ITAT Chandigarh)
The appeals arose from two separate orders passed by the Commissioner of Income Tax (Exemptions), Chandigarh, under Sections 12AB and 80G of the Income-tax Act, 1961. The assessee-trust, constituted on 26.05.2010, was established with objects including protection and preservation of stray cattle and cows, establishment and maintenance of gaushalas, providing shelter, food and veterinary care to abandoned, old and infirm cows, and organising programmes for inculcating personal, social and national values. The trust had received provisional registration under Section 12AB on 28.05.2021 and subsequently applied for regular registration under Section 12AB and approval under Section 80G.
The CIT(E) accepted the genuineness of the trust’s objects and activities and granted registration under Section 12AB. However, instead of recognising the assessee as a charitable institution, the CIT(E) categorised it as a “Religious Entity”. While considering the application under Section 80G, the CIT(E) observed that the trust conducted discourses on the Bhagavad Gita and broadcast or telecast such discourses, treating these as religious activities. Relying upon Explanation 3 to Section 80G(5) and the decision of the Supreme Court in Upper Ganges Sugar Mills Ltd., the CIT(E) rejected the application for approval under Section 80G.
