KALASADHANALAYA,CHENNAI V. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHENNAI

ITA 3056/CHNY/2024

AI Insights

The case involves Kalasadhanalaya, a trust engaged in promoting and imparting education in traditional dance forms, which sought renewal of its 80G exemption under the Income Tax Act. The Commissioner of Income Tax (Exemptions) initially rejected the application, stating that the trust's activities did not qualify as charitable under Section 2(15) of the Act. The trust appealed this decision, arguing that their activities constituted education and thus should be considered charitable. The Tribunal, referencing several judicial precedents, found merit in the trust's arguments and remitted the case back to the CIT (Exemptions) for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 313088 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Other Referred Cases: Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234 (SC), The Mylapore Fine Arts Club ITA 1706/MAD/2010, Abhinayavani Nritya Niketan ITA 994 & 995 /HYD/2019, Sri Thiya Brahma Gana Sabha, Chennai ITA 1677/MAD/2015
• Laws Referred To: Income Tax Act, Section 80G, Income Tax Act, Section 12A, Income Tax Act, Section 2(15)
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M. MURALI; C.I.T
• Assessee Lawyers: S.VIGNESH
• Keywords: Opportunity of being heard; Principle of natural justice; Charitable institution
• Section: 12A; 80G

Judgement Text

" आयकर अपीलीय अिधकरण, ‘ए’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ᮰ी एबी टी वकŎ, Ɋाियक सद˟ एवं ᮰ी एस. आर. रघुनाथा, लेखा सद᭭य के समᭃ BEFORE SHRI ABY T VARKEY, HON’BLE JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 3056/Chny2024 िनधाᭅरण वषᭅ / Assessment Year: 2025-26 Kalasadhanalaya, 80A/2, Sriram Apartments, St.Marys Road, Abhiramapuram – 600 018. vs. Commissioner of Income Tax (Exemptions), 121, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 018. [PAN: AAATK-8213-F ] (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri. S.Vignesh, C.A. ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri. M.Murali, C.I.T. सुनवाई की तारीख/Date of Hearing : 21.04.2025 घोषणा की तारीख/Date of Pronouncement : 28.04.2025 आदेश /O R D E R PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER: This appeal by the assessee is filed against the order of the Commissioner of Income Tax (Exemptions), Chennai, for the assessment year 2025-26, dated 30.09.2024. 2. The grounds of appeal raised by the assessee are as under: :-2-: ITA. No:3056/Chny/2024 “1. The order of the Learned Commissioner of Income Tax (Exemptions) Chennai rejecting application of renewal of 80G exemption is against the facts and circumstances of the case in supportive in law and violative of the principles of equity and natural justice. 2. The learned officer has erred by not treating the activities of the Assessee as Education. 3. The Appellant craves leave to add, alter, delete and modify all or any of the grounds of appeal, at any time during this appeal and requests an opportunity of being heard before orders are passed.” 3. The assessee is a trust. Filed an application dated 31.03.2024 in Form 10AB seeking approval under Clause (iii) of first proviso to sub-section (5) of Section 80G of the Act. The assessee is having a registration under Section 12A dated 06.04.2022 from Assessment Year 2022-23 to 2026-27 and also provisional approval under Section 80G up to assessment year 2024-25. 4. The assessee’s nature of activities are charitable and the object is education. Some of the objectives mentioned in the trust deed are as under: “1. To educate, promote, impart knowledge, practice and training in the school of arts inclusive of Bharatanatyam, Classical dance and any other related studies including philosophy, vocal music etc. 2. To publish materials in connection with this subject and make the literature available for students and art connossieurs. :-3-: ITA. No:3056/Chny/2024 3. To produce, written audio material and video material that would serve the purpose of propagation of dance, dance-drama and other subjects concerned. 4. To produce material that would facilitate the teaching, learning and propagation of classical dance and allied subjects.” 5. After consideration of the objectives of the trust, the CIT(Exemptions) passed an order dated 30.09.2024 rejecting the approval under Section 80G of the Act for the reason that the primary object is to promote awareness on traditional dance of India and to facilitate attainment of expertise in performing dance. Thus the activities of the trust cannot be construed for charitable purpose as defined in Section 2(15) of the Act. 6. Aggrieved by the order of CIT (Exemptions), the assessee preferred an appeal before us. The learned AR for the assessee submitted that assessee is a trust established by a trust deed dated 15.07.1994 with a primary objective of educating, promoting and imparting knowledge, practice and training in the school of arts specifically, classical dance, bharatanatyam, kuchipudi and other related studies in stage management, vocal music, etc. The learned AR submitted that the objective of the trust is dedicated to a structured and systematic process imparting education in traditional dance forms and allied arts which align definition of “education” under Section 2(15) of the :-4-: ITA. No:3056/Chny/2024 Act. In support of the argument, the learned AR relied on the following judicial precedents:  Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234 (SC): The Supreme Court held that “education” under Section 2(15) includes any systematic activity that imparts knowledge or skills to the public, beyond formal schooling.  The Mylapore Fine Arts Clubm ITAT Chennai C Bench ITA 1706/MAD/2010: Hon’ble ITAT Chennai C Bench recognized preservation of cultural importance dance and musics eligible for charitable benefits.  Abhinayavani Nritya Niketan –ITAT Hyderabad Bench A ITA 994 & 995 /HYD/2019 Held that education of Kuchipudi comes under definition of charitable activities under Section 2(15) of Income Tax Act, 1961.  Sri Thiya Brahma Gana Sabha, Chennai ITAT bench D, ITA 1677/MAD/2015, held that imparting education in dance and music is charitable in nature. 7. Further, the learned AR stated that the assessee’s activities are conducted without any profit motive and are aimed at benefiting the public at large. Further, the learned AR stated that the application of fund has been made towards educational activities such as conducting class work, dance and cultural programs and hence, trade for directing the learned CIT (Exemptions) to grant the approval under Section 80G of the Act. 8. Per contra, the learned DR submitted the order of the CIT (Exemptions) and prayed for confirming the same. :-5-: ITA. No:3056/Chny/2024 9. We have heard the rival contentions perused the material available on record and gone through the order of lower authorities along with the case laws relied on. It is an admitted fact that the trust exists from 15.07.1994 and has exemption under Section 12A of the Act along with the approval under Section 80G of the Act from inception. On perusal of the objects of the trust in Trust deed we find that the assessee is engaged in the promotion of an art and culture by educating the ancient / traditional dance culture to the students, which forms part of the education as per Section 2(15) of the Act. The relevant extract of the objects stated in the trust deed is given below: “To educate, promote and impart knowledge, practice and training in the school of arts, namely (1) Classical dance (2) Bharatanatyam (3) Kuchipudi and (4) any other related studies in stage management, vocal music. Etc.” 10. Further, we find that the trust has spent the entire amount towards the expenditure related to the objects of the trust and hence there is no profit motive in the activities of the assessee. The receipts and expenditure of the trust have been captured in page nos.6 & 7 of the order of ld.CIT (E). 11. Further, the reliance on the judicial precedents by the ld.AR in support of the assessee’s objects are in the nature of public :-6-: ITA. No:3056/Chny/2024 charitable activities which is squarely falls u/s.2(15) of the Act is to be considered to appreciate the activities of the assessee. 12. We note that the 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. 13. Further, this tribunal in the case of The Mylapore Fine Arts Club cited supra, observed that the preservation of cultural importance dance and music eligible for charitable benefits. 14. Similarly in the case Sri Thiya Brahma Gana Sabha, cited supra, held that imparting education in dance and music is charitable in nature. 15. Further, in the case of Abhinayavani Nritya Niketan –ITAT Hyderabad Bench (supra) held that education of Kuchipudi comes under definition of charitable activities under Section 2(15) of Income Tax Act, 1961. 16. In light of the above factual matrix and discussion, we are of the considered view that the ld.CIT(E) has erred in rejecting the application for approval u/s.80G of the Act. In the present :-7-: ITA. No:3056/Chny/2024 facts of the case and respectfully following the judicial precedents cited supra, we remit the issue back to the files of the ld.CIT(E) to consider the issue afresh. 17. In the result the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 28th April, 2025 at Chennai. Sd/- Sd/- (एबी टी वकŎ ) (ABY T VARKEY) Ɋाियक सद˟/Judicial Member (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखासद˟/Accountant Member चे᳖ई/Chennai, ᳰदनांक/Dated, the 28th April, 2025 sp आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3.आयकर आयुƅ/CIT- Chennai/ Salem/Coimbatore/Madurai 4. िवभागीय Ůितिनिध/DR 5. गाडŊ फाईल/GF "