Kalasadhanalaya Vs CIT (Exemptions) (ITAT Chennai)
Assessee trust, registered u/s 12A & holding provisional 80G approval, filed a fresh application in Form 10AB seeking continuation of 80G benefits.
CIT(E) rejected the application on 30.09.2024, observing that the primary object of the trust was to promote awareness of traditional dance forms like Bharatanatyam & Kuchipudi, which could not be construed as “charitable purpose” u/s 2(15). According to CIT(E), imparting training in dance is not education but promotion of cultural recreation, thereby falling outside the scope of charitable activity.
Assessee contended before Tribunal that its trust deed clearly set out objectives of education through systematic training in Bharatanatyam, classical dance, vocal music, stage management & allied arts. It was argued that structured training in fine arts qualifies as education u/s 2(15) & nominal collections do not affect its charitable character, as the activities are without profit motive.
Tribunal noted that the trust exists from 15.07.1994 & has exemption under Section 12A along with the approval under Section 80G from inception. On perusal of the objects of the trust in Trust deed Tribunal found that assessee is engaged in the promotion of an art & culture by educating the ancient / traditional dance culture to the students, which forms part of the education as per Section 2(15). Trust has spent the entire amount towards the expenditure related to the objects of the trust & hence there is no profit motive in the activities of the assessee. 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. Chennai tribunal in the case of The Mylapore Fine Arts Clubm ITAT Chennai C Bench ITA 1706/MAD/2010 , observed that the preservation of cultural importance dance & music eligible for charitable benefits. In Sri Thiya Brahma Gana Sabha, Chennai ITAT bench D, ITA 1677/MAD/2015, held that imparting education in dance & music is charitable in nature. In Abhinayavani Nritya Niketan –ITAT Hyderabad Bench A ITA 994 & 995 /HYD/2019 it was held that education of Kuchipudi comes under definition of charitable activities under Section 2(15)
