Imparting of yoga training by Baba Ramdev Trust is charitable educational object

Issue – That the Commissioner of Income-tax (Appeals) erred on facts and in law in further failing to appreciate that imparting of yoga training through well structured yoga shivirs/ camps also falls under the category of imparting “education’, one of the charitable objects defined under section 2( 15) of the Act. Facts :- The brief facts of the case are that the appellant is a public charitable trust registered vide deed dated 05.01.1995. It is also registered u/s 12A of the I. T. Act, 1961 vide order dated 2.03.1995 issued by DIT(E), Dehradun. It was also enjoying approval granted u/s 80G(5)(vi) of the Act vide order dated 24.08.2007 applicable for the year under consideration. The appellant trust has been denied exemption by treating it as covered under the proviso to Section 2(15) of the Act on account of the fact that it was carrying on business activities having turnover of more than the prescribed limit. Ld. CIT(A) has upheld this action of the A.O. Aggrieved, the assessee has preferred the present appeal on the above grounds.

Held :- As discussed above the proviso to section 2(15) of the Act applies only to trusts/institution falling in the last limb of the definition of charitable purpose ; that too, if such trust / institution carry on commercial activities in the nature of business, trade or commerce. The said proviso does not apply to trust / institution engaged in the charitable object of providing relief to the poor, imparting education and providing medical relief. The last limb of the definition of charitable purpose u/s 2 (15) talks about the advancement of any other object of general public utility. The aforesaid predominant objects and the vision make it clear that the objects of the appellant are to provide ‘medical relief’ ‘impart education’ to the society at large and ‘relief to the poor’ hence the proviso to section 2 (15) does not apply in the case of the assessee / appellant. The forth issue as to whether donation of Rs. 38.35 crores made to Patanjali Yog Peeth for the purpose of setting up Yog Bhawan and other yoga related activities these amounts to application of money for the purpose of medical relief has also been discussed and decided while adjudicating upon the first issue under the head medical relief or relief to the poor, following the same the fourth issue is also decided in favour of the appellant.