Promoting Universal Teaching of Shri Guru Granth Sahib and Other Religious ‘Granths’ among the General Public is Charitable Activity: ITAT [Read Order]

A division bench of ITAT Delhi, comprising Judicial Member H.S. Sidhu, and Accountant Member L.P. Sahu, while granting relief to Shabad Foundation, held that Activity of promoting the Universal teaching of Shri Guru Granth Sahib and other religious “Granths” among the general public is Charitable in nature.

The main object of the trust mentioned in the deed of Assessee society is “to promote awareness of universal teaching of SGGS (Shri Guru Granth Sahib) and other religious “Granths” among the general public and in the younger generation.”

The CIT(E) made several observations from the documentary evidence regarding the corpus donations and mostly received through cash and their purposes are being used only for specific charitable purposes or not. CIT(E) further observed that the activities of the trust don’t lend themselves to the general public utility as well.

Accordingly, he declined the request to grant the registration under Section 12AA of the Income Tax Act to the applicant. The assessee challenged the said order before this Tribunal.

Before the Tribunal, the assessee submitted that the trust shall be styled as Religious and Educational Trust and also added that teaching to general public without any discrimination as to religion, caste creed or gender and making people at large to understand the contents of their religious granths also comes within the ambit of education as has been well explained in the write up on activities undertaken by the trust.

The bench heard both the recitals and perused the documents and observed from the deed that the benefit of the activities of the trust shall be availed to all, irrespective of any cast, creed or religion and not only to one segment as has been judged by the CIT (E).

The Tribunal cited a case law of High Court of Punjab & Haryana in CIT vs. Baba Kartar Singh Dukki Educational Trust has held that the object of section 12AA of the Act is to examine the genuineness of the objects of the trust.

The bench further noted that the assessee is doing the charitable work to promote the awareness of universal teaching of SGGS (Shri Guru Granth Sahib) and other religious “Granths” among the general public and in the younger generation, which is very much essential in these days for the betterment of the young generation.