Nritya Samsrti Vs CIT (Exemptions) (ITAT Chennai)
Culture Counts as Charity- Dance is Education, Not Recreation – Teaching Bharatanatyam is Charitable, Not Commercial – ITAT Chennai Remands 80G Approval for Bharatanatyam Trust
Assessee trust, formed to promote & propagate Bharatanatyam & other fine arts, had obtained registration u/s 12A & provisional approval u/s 80G. It filed a fresh application in Form 10AB seeking continuation of 80G benefit. CIT(E) rejected the application by holding that activities such as conducting dance classes cannot be considered “education” within the meaning of s.2(15). It was reasoned that teaching dance is in the nature of recreation & that collection of fees from certain students made the activity commercial. Reliance was placed on the restrictive reading of Loka Shikshana Trust (SC) to conclude that the trust was not engaged in charitable activities.
Before the Tribunal, Assessee argued that its dominant purpose was advancement of art & culture, specifically Bharatanatyam, which has consistently been recognised as charitable. It was further contended that structured training in classical dance amounts to “education” as interpreted in various precedents. Reliance was placed on Delhi Music Society (Del HC), Swar Sangam (Cal HC), Mylapore Fine Arts Club (ITAT Chennai) & Abhinayavani Nritya Niketan (ITAT Hyderabad), all of which held that imparting training in dance & music is charitable in nature. It was also argued that nominal fees charged do not convert charitable activities into commercial ones when there is no profit motive.
