TMI Blog2021 (10) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... and also whether they are charitable organisation. Subject to such verification of the objects of the recipients the Ld. AO was directed to treat the application of income of the assessee, which in our considered view is just and proper and without any ambiguity so as to warrant interference - Decided against revenue. Corpus donation receipts - HELD THAT:- As decided in own case [ 2019 (9) TMI 1598 - ITAT AHMEDABAD] CIT(A) observed that Section 2(15) r.w.r. 13(8) of the Act is not applicable to the case of the appellant and further that the appellant would eligible to claim benefit u/s. 11 and 12 of the Act including the deduction u/s. 11(1)(d) of the Act which has been confirmed by us in this appeal. The Learned CIT(A) has, therefore, directed the Learned Assessing Officer to verify whether the corpus donation were received or the voluntary donations have been received by the appellant with a specific direction taking into consideration the entire aspect of the matter, which in our considered opinion is just and proper without any infirmity so as to warrant interference. - Decided against revenue. - I.T.A. No. 444/Ahd/2019 - - - Dated:- 29-9-2021 - Pradip Kumar Kedia, M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant materials available on record including the order passed by the Hon'ble Tribunal. While dealing with the issue the Hon'ble Tribunal has been pleased to observe as follows:- 3. The brief facts leading to this case is this that the assessee trust came into existence in the year 1996 registered under section 12A(a) of the Income Tax Act by and under the order issued by the Commissioner of Income Tax, Karnataka-II, Bangalore, being Memo No. Trust/718/10A/Vol. A-III, V-275/97/CIT-II dated 18.04.1997 w.e.f. 29.03.1996. The Trust is further registered u/s. 80G(5)(vi) of the Act by and under the order dated 25.04.2006 issued under the signature of the Director of Income Tax (Exemption) being Memo No. DIT(E)/80G/42/W. 2/2006-07. The assessee Trust is also registered under Section 35AC of the Act by and under the notification dated 23.10.2007. 4. On 22.09.2011 the assessee filed its return of income for A.Y. 2011-12 with the DDIT(E)- Circle - 17(2), Bangalore declaring total income as Nil which was processed u/s. 143(1) of the Act on 25.07.2012 resulting into a refund of ₹ 1,26,14,810/- inclusive of interest u/s. 244A of ₹ 8,80,103/-. Subsequently, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vity of rendering any service in relation to any trade, commerce or business, for a Cess or fee or any other consideration, irrespective of the nature of use or application, or retention of the income from such activity. Such amendment has been made applicable w.e.f. 1st April, 2009 i.e. for A.Y. 2009-10 and subsequent assessment years. The Learned DR filed a general note on the issue before us. 6.1. In the said note the revenue has dealt with the positive effects of Sudarshan Kriya Yoga which is taught systematically to the public at large by the appellant trust in the entry level programmes conducted by it. The influence of Sudarshan Kriya staring from the physiological function traveling through endocrine system resulting in therapeutic implications, stimulating the antioxidant enzyme activities, including stress related medical disorders like chronic fatigue, chronic pain, fibromyalgia, neck and back pain, temporomandibular joint pain, cancer, diabetes, multiple sclerosis, and asthma exhaustively. It has also discussed the positive effect of Sudarshan Kriya Yoga on lipid profile, pulmonary function, hemoglobin concentration, cardiovascular and respiratory diseases. The not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as and seminars. j) To organise and conduct relief works of all kinds for the poor, the orphans, the helpless and the distressed and disabled people, without any distinction of caste, creed or religion, during natural calamities or otherwise. k) To promote opportunities for the youth to organise physical, cultural, games, sport, traveling, excursion and adventure training camps. l) To protect and develop the intellectual values of students, sportsmen and all those who are rich in any cultural field and to encourage them suitably. m) To do all such other things as are incidental or conducive to the attainment of the above objectives or any them, in tune with the laws of the land. n) To form an All India Panel of illustrious men and women well versed in Vedic Sciences who would be invited to become visiting professors. o) To organise seminars and conferences on different aspects ancients literatures yoga and meditation. p) To establish training institutes as part of the training programme, where useful vocations depending on the aptitude of personalities, with special attention to the needs of poor women and children of all castes. q) To establ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to be examined is the objects of the society and not the quantum of surplus though such quantum may become relevant in certain circumstances. The Learned Senior Counsel also drew our attention to the objects of Sudarshan Kriya which we would like to analysis at the relevant point. Apart from that the research finding from NIMHANS and AIIMS on the effect of the said Sudarshan Kriya on the participants had also been relied upon by him. 7.3. The Ld. AR further relied upon the judgment passed by the Hon'ble ITAT, Delhi Bench in the case of Divya Yog Mandir Trust-vs-JCIT, Hardwar wherein it has been held that imparting of Yoga training through well-structured yoga camps falls under category of imparting education which is one of the charitable objects defined under section 2(15) and hence the activity is not hit by the proviso to section 2(15) of the Act. It is the specific submission of the Learned AR that there is an aliment of fees or charges levied by the assessee Trust but in the absence of any profit motive, the said activity cannot be characterized as a trade, commerce or business. Therefore, according to the Learned AR, mere action of charging fee for ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts, (v) preservation of environment (including water soil forest and wild life). Ultimately, the Learned AO observed that as soon as the assessee's case is hit by the amended provision of section 2(15) by virtue of sub Section 8 of section 13, the provision of section 11 and 12 of the Act are not applicable in order to avail exemption of its income from tax. Once the activities carried on by the assessee which are in the nature of advancement of any other object of general public utility are considered as non-charitable purposes, the income generated from such activities shall not be treated as income derived from property held under the trust within the meaning of section 11(1)(a) of the Act. 7.8. The assessment was ultimately finalized by and under an order dated 28.03.2014 holding that the activities of the assessee does not fall under clause Education and medical relief but last limb of proviso to section 2(15) of the Act i.e. an advancement of general public utility . It was further held that Sudarshan Kriya as system falls in the residuary category of education and medial relief. Apart from that, the exemption enjoyed by the assessee u/s. 11 12 of the Act has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the matter is as to whether the activities of the appellant trust falls within the ambit and purview of providing medical relief , imparting education or in the last limb of section 2(15) of the Act being the residuary category of advancement of any other objects of the general public utility . In addressing the issue we need to be apprised on the objects of Sudarshan Kriya which has already been placed by the assessee before the authorities below: The Sudarshan Kriya incorporates specific natural rhythms of breath which harmonize the rhythms of the body and emotions and bring them in tune with the rhythms of nature. The breath connects the body and mind. Just as emotions affect our patterns of breathing, we can bring about changes in our mental and behavioral patterns by altering the rhythms of our breath. It flushes out anger, anxiety and worry; leaving the mind completely relaxed and energized. As per result of this the individuals who take refuge in substance abuse, (like alcohol, smoking drugs etc.) to reduce mental stress, and end up in loss of health and wealth, find a very effective way to put their mind at rest, thus freeing them from the dependence of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on a regular basis. The breath technique adopted is an integral part of Pranayama of the Ashtanga Yoga referred in the Yoga sutras. The technique referred here is Sudarshan Kriya, where the order of performance in defined in a specific manner to achieve results for the betterment of an individual. From the note submitted above, it can be seen that according to the appellant the unique the unique of Sudarshan Kriya developed by the appellant is closely related to breathing techniques, meditation and the various aspects of Ashtang Yog. According to the appellant the practice of Sudarshan Kriya as per various reports of medical institutions and research publication has helped the recipients of Sudarshan Kriya to reduce the stress level, increase immunity, reduce cholesterol etc. The methodology of imparting the training in Sudarshan Kriya is very well structured as it is apparent that the appellant is conducting various courses for different levels of participants progressing in the techniques of Sudarshan Kriya. 8.2 We have further gone through the analysis made by the Ld. CITA on the effect of Sudarshan Kriya as also the note submitted by the assessee in this respect wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to whether the trust fall within the purview of providing imparting education the Hon'ble Tribunal, Delhi Benches in the matter of Divya Yog Mandir Trust-vs-JCIT, Hardwar relied upon the observation made by the Hon'ble Apex Court in the matter of Sole Trustee, Lok Shikshana Trust-vs-CIT, reported in [1975] 101 ITR 234 wherein in the context of section 2(15) of the Act, education has been explained as a process of training and developing the knowledge, skill, mind and character of students by schooling by way of systematic instruction, schooling or training. Therefore, any form of education activity involving imparting of systematic training in order to develop the knowledge, skill, mind and character of students, is to be regarded as education covered under the purview of section 2(15) of the Act. In that view of the matter, yoga training through well structured yoga shivir/camps has been characterized under the category of imparting education which is, one of the charitable objects defined u/s. 2(15) of the Act. The plea of the Revenue that activities of the appellant therein are hit by the Proviso inserted in the definition of charitable purpose in section 2(15) as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he last limb of the definition of charitable purposes, that too, if such trust/institutes carry on commercial activities in the nature of business trade or commerce. The said proviso does not apply to trust/institutes engaged in the charitable objects of providing relief to the poor imparting education and providing medical relief . Since the predominant objects and activities of the trust in hand before us make it clear that such objects are to provide medical relief and imparting of education to the society at large, being charitable objects defined under section 2(15) of the Act, in our considered view proviso to section 2(15) is not applicable to the instant case of the assessee. Neither Sudarshan Kriya falls within the residuary category of 'education' or 'medical relief'. 8.6 It is also a fact that donations have been received which has shown as voluntary contribution including the contributions from the corporate who are benefited out of these programs for their own staff. The question arose when such contributions have been treated as course fees by such corporate and deducted TDS thereon, whether the same contributes any change in the status of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1501-2000 2,46,17,851 13,148 3.68% 69.98% 6 2001-3000 10,76,50,664 41,986 11.75% 8173% 7 3001-4000 15,96,18,534 45,288 12.67% 94.40% 8 4001-5000 2,15,47,954 4,563 1.28% 95.68% 9 5001-7000 6,07,52,130 10,521 2.94% 98.62% 10 7001-10000 2,84,72,399 3,261 0.91% 99.53% 11 10001-25000 1,64,93,278 1,079 0.30% 99.84% 12 25001 and above 8,88,07,958 588 0.16% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has not been interfered with. Further that, the Hon'ble Supreme Court in the case of ACIT-vs-Surat Art Silk Cloth Manufacturers reported in 121 ITR 124 (SC) has been pleased to observe that expression 'for the purpose of profit' implies that the predominant object should be to earn profit. Further to determine the predominant object, it is required to examine the object of the society and not quantum of surplus though such quantum may become relevant in certain circumstance. With the essence of inspiration from the ratio laid down by the Hon'ble Apex Court in the aforesaid judgment conclusion can be drawn that the contribution on which TDS have been deducted amounting to ₹ 4.5 crores being 6.6% of the total contribution ₹ 68 crores, the appellant cannot be said to be a profit making organization when the pre-activity is entirely charitable in nature which has been rightly taken care of by the Learned CIT A and hence we confirm the same. In the result revenue's appeal is dismissed. We do not find any reason to deviate from the stand as above taken by the Coordinate Bench. Respectfully relying upon the same we affirm the order passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explanation does not place a total embargo on donations by one trust to another. It does not prohibit the trust from donating its entire income in a relevant year to another trust, as is the law as noticed in the Division Bench in Shri Ram Memorial Foundation. The embargo is only on the income of the trust not applied in the relevant year but accumulated set apart being donated to another trust... 10.1. The assessee further relied upon the judgement passed in the matter of Gagan Education Society-vs-ACIT, reported in (2011) 131 ITD 442 wherein the assessee society donated certain sum to another charitable society out of current year's income and claimed deduction. The Hon'ble ITAT observed that the restriction imposed by section 11(3)(d) applies to income under section 11(2) and not to current year's income or to accumulation under section 11(1) and thus assessee's claim was allowed. 10.2. Therefore, if the donations have been made from the income of the previous year and not out of the accumulation under section 11(2) then the same be eligible to be considered as application of income as long as the recipients are charitable organizations. Having regard ..... X X X X Extracts X X X X X X X X Extracts X X X X
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